You are part of an investment group that is planning to open a warehouse club in your hometown. There are a number of considerations that you will have to address in order for this venture to be successful. Which of the following statements is true regarding warehouse clubs?

Question

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Warehouse clubs are members-only selling operations, where only members who have paid an annual fee can shop. This allows the warehouse club to offer lower prices to members who are buying in bulk, while also generating revenue from membership fees. Option A is incorrect, as warehouse clubs are successful in the United States, with popular chains such as Costco and Sam's Club. Option B is incorrect, as warehouse clubs typically do not offer credit or personal assistance, but instead focus on providing low-priced, high-volume products. Option D is incorrect, as warehouse clubs primarily offer low-priced goods in bulk, rather than convenience. Option E is also incorrect, as warehouse clubs typically accept lower margins in exchange for offering low prices to members.

You Are Part of an Investment Group That Is Planning