According to the Text, Once a Company's Customers Have Become

question 96

Multiple Choice

According to the text, once a company's customers have become "loyal supporters," the company should seek to further the relationship with those customers so that they become _______.

• A) advocates
• B) referral generators
• C) clients
• D) repeat purchasers

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present value, enabling comparison of the value of investments made at different times.

Net Present Value

A method used to evaluate investments by calculating the present value of expected future cash flows minus the initial investment cost.

Cash Inflows

Refers to the money received by a company during a particular period, including revenues from sales, investments, and financing activities.

Minimum Acceptable Rate

The lowest rate of return on an investment that a manager or investor is willing to accept.