Which of the Following Is Not a Reason to Enhance

question 25

Multiple Choice

Which of the following is not a reason to enhance a customer database?

• A)To learn more about the customer.
• B)To increase the effectiveness of future promotional activities targeted to current customers.
• C)To better prospect for new customers who are similar to current customers.
• D)All of the above are reasons to enhance a customer database.

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Definitions:

Return on Total Assets

A financial ratio that measures the net income produced by total assets during a period by comparing net income to the average total assets.

Net Profit Margin Percentage

A profitability metric that calculates the percentage of net income derived from revenue, indicating how much of each dollar in revenue results in profit.

Return on Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management is using a company's assets to create profits.

Gross Margin Percentage

A financial metric that represents the percentage of total sales revenue remaining after accounting for the cost of goods sold.