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A Difficulty with Increasing a Retailer's Return on Net Worth

Question 24

Multiple Choice

A difficulty with increasing a retailer's return on net worth through high financial leverage is the ________.


A) possible loss in sales due to being out-of-stock on desirable merchandise
B) negative effect on net profit due to high inventory levels
C) uncertainty of repayment of interest and debt
D) high costs of stocking inventory

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