Internet Buyers Are Sometimes Surprised to See Online Retailers Using

question 150

Multiple Choice

Internet buyers are sometimes surprised to see online retailers using information about their past purchases to customize promotions targeted to them the next time they visit the retailer's website. The retailer is using the information to

• A) comply with Homeland Security requirements.
• B) shift from a general merchandise retailer to a private-label retailer.
• C) increase the share of wallet from its best customers.
• D) create traffic in its brick-and-mortar stores.
• E) reward customer loyalty.

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Definitions:

Direct Method

A cash flow statement preparation approach that itemizes actual cash inflows and outflows from operating activities, as opposed to estimating them through indirect adjustments.

Expenses and Losses

Costs incurred in the operation of a business (expenses) and decreases in value not directly related to operations (losses).

Depreciation

Depreciation is the systematic allocation of the cost of a tangible asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.

Direct Method

A cash flow statement approach that lists major classes of gross cash receipts and payments.