Christopher Notices That His Discover Card Statement Gives the Company's

question 84

Multiple Choice

Christopher notices that his Discover Card statement gives the company's Web address (Discovercard.com) and directs him there to pay his bills and answer his questions. What e-business strategy is Discover employing with this reference to its Web site?

• A) Increasing revenue streams
• B) Decreasing expenses
• C) Selling additional services such as fraud insurance
• D) Reallocating its revenue stream
• E) Decreasing revenue streams

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Definitions:

Break-Even

The point at which total costs equal total revenue, resulting in neither profit nor loss.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production supplies.

Fixed Costs

Expenses that do not change with the level of output or activity, such as rent, salaries, and insurance premiums.

Break-Even

The point at which total revenues equal total costs, resulting in neither profit nor loss.