Which of the Following Statements About Profitability Analysis Is True

question 103

Multiple Choice

Which of the following statements about profitability analysis is true?

• A) Cross- selling refers to selling unprofitable products to profit- making customers.
• B) Very profitable customers rarely need much attention.
• C) Companies might benefit from encouraging unprofitable customers to switch to competitors.
• D) Companies should never raise prices on unprofitable products.
• E) all of the above

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Definitions:

Failed To Make

Refers to the inability or omission of completing a particular action, such as making a payment or fulfilling an obligation.

Equal Payments

Equal payments entail a financial agreement where payments or installments remain consistent over a specified period.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, commonly expressed as an annual percentage of the loan outstanding.

Missing Value

A term used in statistics and data analysis for a data point that is not recorded or is unknown.