Knowing What Customers Expect Is Essential

question 108

Multiple Choice

Knowing what customers expect is essential.Retailers need to know which manufacturers their customers prefer,while manufacturers need to know:

• A) if customers are using credit cards or cash to make purchases.
• B) how many employees the retailers have.
• C) where their target customers expect to find their products.
• D) whether the products will fill self-actualization needs through satisfying these expectations.
• E) whether customers will find the store atmosphere appropriate to the neighborhood or location.

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Definitions:

Interest Paid

The amount paid by a borrower to a lender in compensation for the use of borrowed money, typically expressed as an annual percentage of the principal.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations based on its current income. It's calculated by dividing earnings before interest and taxes (EBIT) by the interest expenses.

Depreciation Expense

The orderly assignment of the financial value of a real asset over its life of usefulness.

EBIT

The financial performance metric, Earnings Before Interest and Taxes, deducts all expenses from a firm's income except for interest and tax expenses.