The Approximate Worth of a Customer to a Company in Economic

question 118

Multiple Choice

The approximate worth of a customer to a company in economic terms is known as the _____.

• A) net present value (NPV)
• B) customer lifetime value (CLV)
• C) customer present value (CPV)
• D) customer future value (CFV)
• E) total customer value (TCV)

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Definitions:

Debt Instrument

A paper or electronic obligation that enables the issuing party to raise funds by promising to repay a lender in accordance with terms of a contract.

Bond

A fixed income investment in which an investor loans money to an entity (corporate or governmental) which borrows the funds for a defined period at a variable or fixed interest rate.

Financial Asset

An intangible asset that derives value from a contractual right or ownership claim, such as stocks, bonds, or bank deposits.

Company's Profits

The financial gain realized when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain the activities.