Which of the Following Statements Best Describes a Firm's Commitment

question 38

Multiple Choice

Which of the following statements best describes a firm's commitment to its customers?

• A) The firm is responsible for offering domestic products to foreign customer markets.
• B) One's social responsibility to customers is clear-cut.
• C) Customers will only support companies who make a visible effort to keep prices low.
• D) Firms that offer real value will develop a competitive advantage and gain customer trust.

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Definitions:

Current Yield

The yearly earnings from interest or dividends, when divided by the security's current market price.

Capital Gains Yield

Results from changing prices and is calculated as (P1 - P0)/P0, where P0 is the beginning-of-period price and P1 is the end-of-period price.

Yield To Maturity

The total return anticipated on a bond if it is held until the end of its lifetime.

Current Yield

Current yield is a financial term used to describe the annual income (interest or dividends) earned from an investment, expressed as a percentage of the current price of the security.