Walker Farms Heard from Many of Its Customers That They

question 55

Multiple Choice

Walker Farms heard from many of its customers that they would like organic produce.As a result,Walker Farms became a certified organic farm.Walker realized that while not all consumers were willing to pay the higher prices for organic produce,his customers wanted the organic produce.Walker realized:

• A) he missed sales by not concentrating on the average customer
• B) different customer groups have different needs and wants
• C) he is a sales-oriented farm
• D) his business is about selling the cheapest vegetables
• E) his aim is a goal of profit through maximum sales volume

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Definitions:

Actuarial Value

A measure of the average amount of benefit a health insurance plan is expected to pay, used to compare different health insurance policies.

Actuary

A professional who analyzes financial risk using mathematics, statistics, and financial theory, mostly in the insurance and pension plan industries.

Expected Return

The anticipated amount of profit or loss an investment generates over a given period of time.

Defined Benefit Plan

A type of pension plan where the employer guarantees a specified pension payment upon retirement, based on the employee's earnings history, tenure of service, and age, rather than directly depending on individual investment returns.