If the Following Facts Were Known, Which One Would Strengthen

question 182

Multiple Choice

If the following facts were known, which one would strengthen the argument that a company is profitable?

• A) The company's sales revenue is low relative to its cost of goods sold.
• B) The company's cost of goods sold is low relative to its sales revenue.
• C) The number of customers has remained stable for some time.
• D) The company has had the same owners over its lifetime.
• E) The company's selling expenses are high compared to its administrative expenses.

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Definitions:

Net Present Value

A financial metric assessing the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows.

Customer Relationship

The interactions and engagement between a business and its customers, aiming to improve satisfaction, loyalty, and ultimately sales.

Direct Marketing

A type of advertising strategy that involves communicating directly with targeted customers through various channels to promote products or services.

Marketing Strategies

Approaches adopted by a company to attract customers, influence their preferences, and maintain customer loyalty towards their product or service.