Which of the following statements is true about a retail business?

Question

Quizplus · Accepted Answer

The statement that best describes a retail business is that its revenue activities involve the buying and selling of merchandise to customers. This is what sets retail businesses apart from service businesses, which do not involve the buying and selling of physical goods. Option A is incorrect because it wrongly assumes that a service business must purchase merchandise. Option C is also incorrect because the operating cycles of different businesses may differ depending on the nature of operations. Option D is incorrect because a retail business does not typically involve rendering services to customers.

Which of the Following Statements Is True About a Retail