Both consignment purchases and memorandum purchases enable a retailer to _____.
A)increase information flows
B)lower insurance costs
C)improve cash flow
D)reduce inventory levels

Question

Quizplus · Accepted Answer

Consignment purchases allow retailers to receive merchandise without paying for it upfront, which can help improve their cash flow. Memorandum purchases, also known as memo purchases, allow retailers to borrow merchandise from wholesalers or manufacturers to display and sell in their stores. This helps retailers reduce their inventory levels without having to purchase the merchandise upfront, further improving cash flow. Both of these purchasing methods can improve a retailer's cash flow.

Both Consignment Purchases and Memorandum Purchases Enable a Retailer to _____