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Reasons why retail trade may fail. - SS1 Commerce Past Questions and Answers - page 1

1

What is one possible reason for the failure of retail trade?

A

Lack of customer demand

B

Excessive competition

C

Inadequate store location

correct option: a

Lack of customer demand

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2

Which of the following can contribute to the failure of a retail business?

A

High sales and revenue

B

Effective marketing strategies

C

Poor financial management

correct option: c

Poor financial management

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3

What role does customer demand play in the success of retail trade?

A

It is not a significant factor.

B

It is the primary driver of success.

C

It has no impact on sales.

correct option: b

It is the primary driver of success.

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4

What is the consequence of inadequate financial management in retail trade?

A

Increased customer demand

B

Enhanced cash flow

C

Difficulty in paying bills and suppliers

correct option: c

Difficulty in paying bills and suppliers

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5

Which of the following factors is NOT mentioned as a reason for the failure of retail trade?

A

Intense competition

B

Inappropriate location

C

Effective marketing strategies

correct option: c

Effective marketing strategies

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6

Name one possible reason for the failure of retail trade.

Lack of customer demand

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7

What role does poor financial management play in the failure of a retail business?

It can contribute to cash flow issues, difficulty in paying bills and suppliers, and accumulating excessive debt.

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