Which One of the Following Statements Is TRUE

question 30

Multiple Choice

Which one of the following statements is TRUE?

• A) It's far more difficult to keep old customers than to attract new ones.
• B) It's far more expensive to attract new customers than to keep older ones.
• C) It's about the same in terms of expense to attract new customers and keep older ones.
• D) It's far more expensive to keep older customers than to attract new ones.
• E) It's cheap to attract new customers and keep older ones.

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Definitions:

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for regulating the securities industry and protecting investors.

Prospectus Approval

Prospectus approval is the formal authorization for the issuance of a prospectus by regulatory authorities, detailing a company's financials and operations for investors.

Nominal Interest Rate

The named or quoted rate usually stated on an annually compounded basis. May be different from the effective rate due to non-annual compounding.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing or real yield on an investment.