Regarding Supermarkets, Which of the Following Is NOT True

question 112

Multiple Choice

Regarding supermarkets, which of the following is NOT true?

• A) They introduced self-service to reduce their costs.
• B) After-tax profits are very good-averaging 10 to 15 percent of sales.
• C) The newer ones carry 47,000 product items.
• D) They average about $17 million a year in sales.
• E) They got their start as an experiment during the Depression.

Recognize the difference between short-term and long-term investment strategies and their classifications.

Understand the impact of selling parts of investments, including calculating gains or losses.

Differentiate between the cost method and equity method for accounting investments.

Identify the income statement and balance sheet presentation of investment activities and their impacts.

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Definitions:

Investment Principal

A sum of money invested initially in a financial instrument or vehicle, which serves as the base on which returns or interest is calculated.

Passive Asset Allocation

An investment strategy that aims to build a portfolio mimicking a market index's composition, requiring minimal buying and selling.

Proportions

The quantitative relationship between two amounts, showing the number of times one value contains or is contained within the other.

Portfolio Management

The act of making investment decisions to meet specified investment goals for the benefit of the investors.