Some Service Firms Require a Formal Membership Relationship with Customers

question 62

Multiple Choice

Some service firms require a formal membership relationship with customers so they can:

• A)gather as much information as possible for use by their other companies
• B)screen out consumers who don't meet basic enrolment criteria
• C)charge higher prices for the added membership benefits
• D)gather relevant information
• E)b and d

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Definitions:

Stable Earnings

Earnings that show little variability and predictability over a period, indicative of financial stability in a company.

Preferred Stock

A type of stock that generally provides dividends to its holders before dividends are issued to common stockholders, and typically has rights to assets before common stock upon liquidation.

Organization Cost

An intangible asset that records the initial cost of forming the corporation, such as legal and incorporating fees. Today, it is being expensed.

Intangible Asset

An asset that lacks physical substance, such as intellectual property, brand recognition, or goodwill.