Which of the Following Statements Is True About Customer Retention

question 38

Multiple Choice

Which of the following statements is true about customer retention and customer life expectancy?

• A)The higher the customer retention rate,the lower the short-term profit impact.
• B)As customer retention increases,the customer's life expectancy decreases.
• C)Customer life expectancy decreases exponentially with customer retention.
• D)In general,it costs five times more to replace than to keep a customer.
• E)Higher levels of customer retention have a long-term negative impact on profits.

Recognize the impact of specific transactions on the cash flows of a company.

Determine the net cash flows from financing and investing activities.

Understand the presentation and significance of noncash activities in financial statements.

Calculate free cash flow.

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Definitions:

Negative Symptoms

Features often found in psychiatric conditions, such as schizophrenia, characterized by the absence or diminution of normal behaviors or emotions, such as blunted affect or social withdrawal.

Schizophrenia

Schizophrenia is a chronic, severe mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Behavioural Deficits

A lack or reduction in normal behavior patterns, functioning, or activities, often indicative of psychological conditions or developmental disorders.

Flat Affect

Flat affect is a term used in psychology to describe a significant lack of emotional expressiveness or reaction in an individual, often seen in some mental health disorders.