The First Step a Company Should Take in Creating or Redefining

question 48

Multiple Choice

The first step a company should take in creating or redefining its service environment is to:

• A) decide where the company is now and where it needs to be in order to better serve customers.
• B) review the manner in which the internal and external customer needs are addressed.
• C) create a plan to attract and hold its potential customers.
• D) conduct an inspection of its service and product delivery mechanisms.

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Definitions:

Average Rate of Return

A financial ratio that indicates the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.

Liquidity

The ease with which an asset can be converted into cash without significantly affecting its price.

Capital Investment Analysis

The process of assessing the profitability and risk of potential investment opportunities involving capital expenditures.

Depreciation

Allocating the value of a tangible asset over the period it is expected to be used, in a systematic manner.