When a Company Segments Its Business Customers on the Basis

question 101

Multiple Choice

When a company segments its business customers on the basis of whether or not they require contract bids over the Internet, what segmenting dimension is this company using?

• A) Kind of relationship.
• B) Demographics.
• C) Type of customer.
• D) How customer will use product.
• E) Purchasing methods.

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Definitions:

Financial Activity

Transactions or events that affect the equity or debt of a company, including investments, financing, and distributing dividends.

Noncash Financing

Noncash financing activities are financial transactions that do not involve the physical flow of cash, such as issuing stock to purchase an asset or converting debt to equity.

Investing Activities

Investing activities are financial transactions related to the acquisition or sale of long-term assets or investments not related to the core business operations.

Financing Activities

Transactions and events affecting the equity and debt of the company, usually related to borrowing, repaying, and issuing equity.