Question

Turnover can be increased by:

	a.	A.increasing inventory
	b.	B.decreasing inventory
	c.	C. either a or b
	d.	D. neither a nor b A private label is essentially a retailer’s brand. True False One way for a retailer to expand overseas is to enter a licensing arrangement, forming a partnership with a local foreign company. True False

Answer 1

1. Turnover can be increased by decreasing inventory

Answer : B. Decreasing Inventory

Inventory turnover = COGS / average inventory
600 000 / 110 000 = 5,45

If inventory is increased from 110000 to 120000, the inventory turnover will be reduced.

600000/120000 = 5

2. A private label is essentially a retailer’s brand.

Answer : True

Retailer purchase products from different manufacturers and sells the product under the private label. It helps them to grow the business and make them to be recognised by all the customers.

3. One way for a retailer to expand overseas is to enter a licensing arrangement, forming a partnership with a local foreign company.

Answer : True