The Best Use of the Cost of Lost Banking Customers

question 66

Multiple Choice

The best use of the cost of lost banking customers is to:

• A) Compare this cost from one accounting period to another.
• B) Compare lost-customer costs with costs to obtain new customers, and if the cost of obtaining new customers is greater, refocus efforts on customer retention.
• C) Use these figures to reprimand employees responsible for lost customers.
• D) Justify an initiative to contact lost customers and entice them to come back.

Identify examples of risk-taking behaviors and their impact on organizations.

Understand the role of environmental uncertainty in organizational decision-making and strategic planning.

Understand misconceptions about retirement finances.

Recognize the importance of early savings for retirement.

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Definitions:

Primary Liability

The direct and immediate responsibility to fulfill an obligation or repay a debt, without necessarily having recourse against others for reimbursement.

Secondary Liability

Secondary Liability refers to the legal responsibility of a third-party for the actions of another, such as a parent company being liable for the actions of its subsidiary.

Party Authority

The legal power or capacity of a party to enter into a binding contract or agreement.

Act On Behalf

The action of representing or making decisions for someone else or another entity.