The Most Important Element to Building a Successful Business Is

question 26

Multiple Choice

The most important element to building a successful business is

• A)Soliciting new customers
• B)Maintaining exhaustive databases on purchase patterns
• C)Targeting the right consumer segment
• D)Managing and retaining existing customers
• E)None of the above

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in net profit or loss.

Fixed Assets

Physical assets with a useful life greater than one year, which are used in the operations of a business, such as machinery or buildings.

Net Cash Flow

The difference between the cash inflows and cash outflows in a business over a specified period.

Depreciation Expense

A non-cash expense recorded on the income statement, reflecting the gradual reduction of an asset's value over its useful life.