Drugstore Chain CVS Has an ExtraCare Program That Allows Customers

question 50

Multiple Choice

Drugstore chain CVS has an ExtraCare program that allows customers to register for a card that is swiped prior to each purchase and gives discounts and offers special in-store promotions.The most likely reason why CVS implemented this reward program is to:

• A) to reduce problems associated with cultural diversity
• B) to make sure the 80/20 principle is not influencing its activities
• C) to retain loyal customers
• D) to create cognitive dissonance
• E) to lessen the importance of customer service

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Definitions:

Shares

Units of ownership interest in a corporation or financial asset, which provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing owners' claims against the company's assets.

Common Stock Dividend

A portion of a company's earnings distributed to holders of its common stock, typically in the form of cash or additional shares.

Treasury Stock

Shares that were once outstanding and have been reacquired by the corporation, reducing the number of shares available on the open market.