A Frequent- Buyer (Loyalty) Program Is an Example of

question 20

Multiple Choice

A frequent- buyer (loyalty) program is an example of

• A) consumer promotion
• B) sponsorship
• C) trade allowance
• D) trade promotion
• E) public relations

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Definitions:

Cash Inflows

Money coming into a business from various sources, including sales, financing, and investments.

Salvage Value

The estimated resale value of an asset at the end of its useful life.

Total Cost Approach

The total cost approach considers all possible costs associated with a decision or project, from production to shipping, to evaluate profitability thoroughly.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.