A fresh fruit wholesaler would normally be expected to have
A)high profit margin and high asset turnover
B)low profit margin and low asset turnover
C)low profit margin and high asset turnover
D)high profit margin and low asset turnover

Question

Quizplus · Accepted Answer

A fresh fruit wholesaler typically operates on low profit margins due to the competitiveness of the industry and the perishable nature of the product. However, they tend to have high asset turnover as they have to move large volumes of produce quickly to prevent spoilage. Therefore, the optimal choice would be C: low profit margin and high asset turnover.

A Fresh Fruit Wholesaler Would Normally Be Expected to Have