All of the Following Are Challenges That Groupon Faces EXCEPT

question 239

Multiple Choice

All of the following are challenges that Groupon faces EXCEPT:

• A)most of the Groupon deals are unprofitable,so customers must be converted into repeat purchasers.
• B)Groupon faces an extraordinary level of competition because the daily deal technology is easy to copy.
• C)the business model is hard to adapt at the local level,though it works well for large,national businesses.
• D)some consumers buy the coupons but never use them,eventually leaving them dissatisfied and unlikely to use Groupon again.
• E)Groupon must develop a comprehensive understanding of the differences in international buying behaviors to continue its explosive growth outside the United States.

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Definitions:

Compounded Semi-annually

The process of adding interest to the principal sum of a deposit or loan every six months, so that each subsequent interest calculation is based on the original principal plus all accumulated interest.

Ordinary Annuity

A series of equal payments made at equal intervals of time, with the first payment occurring at the end of the period.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.

Compounded Quarterly

The method of calculating interest where the interest is added to the principal sum four times a year.