If a retailer has an ROA of 10 percent and a financial leverage of 4.0, then its RONW would be:
a. 0.4 percent.
b. 6 percent.
c. 14 percent.
d. 26 percent.
e. 40 percent.
Question 2Public warehouses, trucking companies, and banks are examples of facilitating institutions.
Indicate whether the statement is true or false
Question 3Which of the following presents a key challenge for online retailers?
a. assortment
b. information
c. inventory
d. delivery
Question 4Ten days before Halloween, your local candy wholesaler puts all of its Halloween candy on sale. This is an example of which type of discount?
a. Seasonal discount
b. Quantity discount
c. Zone pricing
d. Promotional allowance
e. Smart discount, since Valentine's Day is approaching and the wholesaler does not want to be stuck with the merchandise
Question 5Today, some retailers are using the Internet to provide consumers with information aids about their store.
Indicate whether the statement is true or false
Question 6If a retailer has a net profit margin of 3 percent, asset turnover of 4.0x, and financial leverage of 2.0x, then its return on net worth is:
a. 6 percent.
b. 8 percent.
c. 12 percent.
d. 24 percent.
e. 48 percent.
Question 7A public warehouse is a facility that stores goods for safekeeping for any owner in return for a fee, usually based upon the dollar value of merchandise stored.
Indicate whether the statement is true or false
Question 8In some instances, personalized pricing may be illegal.
Indicate whether the statement is true or false
Question 9A _____ discount is one that a vendor provides a retailer for running a special promotion for a manufacturer.
a. promotional
b. advertising rebate
c. psychological
d. special
e. cash
Question 10Convenient operating hours are the most basic service a retailer should provide to a customer.
Indicate whether the statement is true or false
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