Which of the Following Is True of Mass Merchandisers

question 24

Multiple Choice

Which of the following is true of mass merchandisers?

• A)They handle deep assortments in a limited number of product categories.
• B)They compete on the basis of providing variety in different product categories and low-priced products in their large assortments.
• C)They are retailers whose primary advantages to consumers are suitable location,close-in parking,and easy entry and exit.
• D)They are large,low-priced limited-line retail chains that attempt to capitalize and establish themselves in a single product category.

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Definitions:

Moral Hazard

A situation where one party engages in risky behavior knowing that they are protected against the consequences, often because another party bears the cost.

Irresponsible Borrowings

Financial behavior that involves taking on debt in ways that are unsustainable or without a plan to manage repayment, leading to potential financial harm.

Shirking

The behavior of employees who avoid doing their work or put in less effort than is expected, which can negatively impact productivity.

Incentive Contracts

Agreements that provide additional benefits or compensation to parties who meet or exceed specific performance goals or targets.