Question

Markdowns may be caused by

a. Lack of seasonal changes
b. Lack of special promotions
c. Style changes
d. Decreased comperition
e. None of these

Answer 1

Markdowns in business can be caused by various factors, including lack of seasonal changes, lack of special promotions, and style changes.

Step-by-step explanation:

In the context of business, markdowns can be caused by various factors. These may include:

1. Lack of seasonal changes: Certain products have higher demand during specific seasons, such as winter clothing or summer outdoor equipment. If there is a lack of seasonal changes, it can result in markdowns to encourage customers to purchase these items.
2. Lack of special promotions: Special promotions like sales or discounts can drive customer interest and increase sales. If there is a lack of such promotions, businesses may offer markdowns to attract customers and stimulate sales.
3. Style changes: Trends and fashion evolve over time. If a product becomes less popular due to changes in style or consumer preferences, businesses may use markdowns to clear inventory and make space for new styles.

The correct answer would be c. Style changes, as markdowns can occur when there is a shift in consumer preferences or fashion trends.