When an Organization's Definition of Customer Expands to Include Internal

question 30

Multiple Choice

When an organization's definition of customer expands to include internal customers, the word customer is best defined as the ____.

• A)purchaser of the end product
• B)user of the end product
• C)consumer with whom a relationship is maintained
• D)next process
• E)person interested in the product

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Definitions:

Paid-in Capital

The sum of funds a business has obtained from its stockholders by selling them stock shares.

Par Value

A nominal value assigned to a share of stock in the charter of a corporation, which does not necessarily reflect its market value.

Common Stock

Equity securities representing ownership in a corporation, providing voting rights, and a dividend claim on earnings.

Cumulative Nonparticipating Preferred Stock

Preferred stock that accumulates unpaid dividends, which must be paid out before dividends can be distributed to common stockholders, but does not participate beyond the fixed dividend.