(1 point)
Responses
It forced them to move to smaller retail space.
It forced them to move to smaller retail space.
Managers were unaware of how much debt there was.
Managers were unaware of how much debt there was.
It could not afford adequate marketing due to the debt.
It could not afford adequate marketing due to the debt.
The interest payments were using up a substantial amount of revenue.
1 answer
The correct response is: The interest payments were using up a substantial amount of revenue.
Carrying a significant amount of debt meant that Toys 'R' Us had to allocate a large portion of their revenue to pay off interest, which limited their ability to invest in other crucial areas such as marketing, store renovations, and inventory.
