Customer Value

question 158

Multiple Choice

Customer value

• A) is greater if costs exceed benefits.
• B) becomes less important as competition increases.
• C) is the same thing as low price.
• D) affects a customer's relationship with a firm before and after a sale.
• E) none of these responses is correct.

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Definitions:

Foreign Exchange Gains

Profits resulting from changes in exchange rates affecting the value of assets, liabilities, or financial transactions denominated in a currency other than the entity's functional currency.

Wholly Owned Subsidiary

A subsidiary where the parent company owns 100% of the shares, giving it complete control over the subsidiary.

Financing

The process of providing funds for business activities, making purchases, or investing, through various means like loans, equity, or bonds.

Accounting Exposure

The risk that changes in exchange rates will affect the reported financial statements of a company.