Customer Knowledge Competence Is Important for Companies Because Inadequate Knowledge

question 58

Multiple Choice

Customer knowledge competence is important for companies because inadequate knowledge of customers and what they want can result in:

• A)greater sales of products
• B)overestimates or underestimates of sales,which can cost the company money and opportunity
• C)competitive advantage in certain product categories
• D)poor analysis of past sales trends
• E)inaccurate market research for the industry

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Definitions:

Progressive Income Tax

A tax system where the tax rate increases as the taxable amount increases, placing a higher tax burden on high-income earners.

Ability-to-Pay Principle

A tax principle suggesting that taxes should be levied according to an individual or entity's capacity to pay, generally implying that those with higher incomes should pay more tax.

Proportional Income Tax

A tax system where the tax rate remains constant regardless of the amount of income, thus taxing all income levels at the same percentage.

Horizontal Equity

The principle that individuals or entities in similar financial situations should be treated equally by the tax system or other public policies.