Which of the Following Best Describes a Lifetime Customer Value

question 61

Multiple Choice

Which of the following best describes a lifetime customer value (LTV) ?

• A) LTV is the value placed upon a retailer by a consumer
• B) LTV is a numerical value of how much a "best customer" shops
• C) LTV is an assessment of how many valued customers shop with a retailer
• D) LTV is what a customer contributes to a retailer's profits over her lifetime
• E) LTV is what retailers use to rate the value of guaranteed merchandise

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Definitions:

Tax Planning

The analysis and arrangements of a financial situation or business to minimize tax liability.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) for international use.

Deferred Taxes

Taxes that are incurred in one period but are not paid until a future period, often due to timing differences between accounting and tax reporting.

Taxable Entity

A business or individual that is required to pay taxes to a federal, state, or local government.