Despite the High Expenses Associated with Operating Elegant Stores and Purchasing

question 71

Multiple Choice

Despite the high expenses associated with operating elegant stores and purchasing advertising space in upscale magazines, the premium retail prices that luxury goods like Louis Vuitton command translate into handsome profits. The Louis Vuitton brand alone accounts for 60% of LVMH's operating profit. On the other hand, Louis Vuitton spends $10 million annually battling:

• A)EU regulations.
• B)counterfeiters in countries such as Turkey, South Korea, & Italy.
• C)competitors in European countries.
• D)suppliers of needed materials.
• E)export freight and taxes.

---

Definitions:

Freud

Sigmund Freud was an Austrian neurologist who founded psychoanalysis, a technique to treat mental disorders by engaging in conversation.

Evolutionary Theory

A scientific theory that explains the diversity of life on Earth through the processes of natural selection, genetic drift, mutation, and gene flow.

Fear of Snakes

A phobia or intense fear of snakes, medically known as ophidiophobia.

Ancient Ancestors

The early human or precursor species from which modern humans have evolved, typically referring to those from millions of years ago.