International Zoological Club Publishes a Monthly Magazine for Zoology Enthusiasts

question 14

Multiple Choice

International Zoological club publishes a monthly magazine for zoology enthusiasts. Members are required to pay an up-front fee to cover the first two years of the subscription when registering with International Zoological club. By doing this, which competitive strategy is International Zoological club implementing?

• A) raising barriers to market entry
• B) establishing alliances
• C) locking in customers
• D) standardizing the product

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Definitions:

Bad Debt Expense

The recognition of receivables that are not expected to be collected, reflecting anticipated losses on credit sales.

Days' Sales in Receivables

Days' Sales in Receivables is a financial metric indicating the average number of days it takes a company to collect payment after a sale has been made, used to gauge the efficiency of a company's accounts receivable management.

Note Receivable

A financial claim against another entity that promises to pay the holder a specific sum of money on a certain date or on demand.

Promissory Note

A financial document in which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future time or on demand of the payee, under specific terms.