Asked by Luthando Bongobi on Jul 21, 2024
Verified
The cost to start a direct retailing business is typically very low which has led to
A) low turnover rates in this form of business.
B) more people using this form of business as a primary source of income.
C) the impression that this form of business is not worthwhile.
D) high turnover rates in this form of business.
Direct Retailing
The process of selling products directly to the consumer, bypassing any intermediary channels such as wholesalers or physical retailers.
Turnover Rates
The rate at which employees leave a company and are replaced, influencing a business's operational efficiency and culture.
- Discern the qualities and methods pertinent to different categories of nonstore retailing.
Verified Answer
HK
Hardeep KharoudJul 25, 2024
Final Answer :
D
Explanation :
The low startup cost of direct retailing businesses often leads to high turnover rates because it's easy for individuals to enter and exit the business with minimal financial risk. This accessibility can result in a high number of people trying out the business model, but also leaving it quickly if it doesn't meet their expectations or financial needs.
Learning Objectives
- Discern the qualities and methods pertinent to different categories of nonstore retailing.