Which of the Following Is Not a Reason a Company

question 163

Multiple Choice

Which of the following is not a reason a company would be willing to accept new business at a loss?

• A)The company has the expectation that it will make up for it in later years.
• B)The company has the expectation that certain customers can influence other potential customers.
• C)The company has the expectation that its estimates will prove incorrect and that the business will result in a profit.
• D)The company has the expectation that it can acquire the customer on a permanent basis by offering a special price upfront.

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Definitions:

Recessionary Phase

A period in the economic cycle when the economy is declining, characterized by reduced industrial activity, trade, and consumer spending.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources, and engaged in the buying, selling, and renting of these properties.

Economic Fluctuations

Economic fluctuations are variations in the level of economic activity, typically measured by changes in real GDP, encompassing cycles of expansion and contraction.

Dow Jones

An index that shows how 30 large, publicly-owned companies based in the United States have traded during a standard trading session in the stock market.