Many Businesses Face the Same Customers Over and Over Again

question 18

Multiple Choice

Many businesses face the same customers over and over again. Repeat business generally:

• A) increases ethical behavior toward customers.
• B) reduces ethical behavior toward customers.
• C) has no impact on ethical behavior.
• D) is the sign of a poorly-run business.

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Definitions:

Highly Automated Industries

Sectors that rely extensively on automation and machinery to produce goods or deliver services with minimal human intervention.

Operating Leverage

The degree to which a firm or project can increase operating income by increasing revenue, a measure of how revenue growth translates into growth in operating income.

Operating Income

This income represents the profit from a company's core business operations, excluding the deduction of interest and taxes.

Break-even Point

The level of production or sales volume at which total revenues equal total expenses, resulting in no profit or loss.