In the Context of the Dimensions of the Business Environment

question 51

Multiple Choice

In the context of the dimensions of the business environment, which of the following is true of the competitive environment?

• A) Getting current customers to buy more of one's products is very expensive for a firm.
• B) Convincing potential customers to try one's products for the first time can be quite easy for a firm.
• C) Unlike current customers, potential customers can be turned into loyal advocates.
• D) Vocal promoters of a firm's products can get the firm new customers effectively.

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Definitions:

Account Nature

The characteristic of an account that classifies it as an asset, liability, equity, revenue, or expense.

Periodic Inventory Method

An accounting method where inventory and cost of goods sold are calculated at set intervals, such as yearly or quarterly.

Promissory Note

A formal written promise by a borrower to pay a certain sum at a fixed future date.

Notes Payable

Short-term or long-term liabilities recorded when a company borrows money, often in the form of a formal written agreement to pay a specified amount with interest.