In General, Companies Can Use Their Databases in Five Ways

question 12

Multiple Choice

In general, companies can use their databases in five ways. Which way involves remembering customer preferences and sending appropriate gifts, coupons, and reading material?

• A) to decide which customers should receive a particular offer
• B) to deepen customer loyalty
• C) to reactivate customer purchases
• D) to identify prospects
• E) to avoid serious customer mistakes

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Definitions:

Sole Proprietors

Individuals who own and operate their businesses alone, without forming a corporation or partnership.

Self-Employment Tax

Self-Employment Tax is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves.

Self-Employment Income

Earnings derived from one's own business, professional practice, or freelance work, subject to tax and self-employment contributions.

Adjusted Basis

The value of an asset for tax purposes, calculated by modifying its original cost by factors such as depreciation or improvements.