An FI's Operating Cost and the Efficient Use of Technology

question 45

Multiple Choice

An FI's operating cost and the efficient use of technology:

• A)have no impact on the FI's profits before taxes
• B)can have a significant impact on the FI's profits before taxes
• C)will merely improve the FI's reputation
• D)are not important as FIs have the back-up of the government in times of financial distress

---

Definitions:

Target Customer Segment

A distinct segment of the marketplace that a corporation directs its offerings towards.

Profit To Distributors

The financial gain that distributors achieve from selling products after accounting for their cost of goods sold and operating expenses.

Production Era

A period in business thought where the main focus was on manufacturing efficiency and product output, with little attention to the consumer.

Marketing Concept

A business philosophy that holds that the key to achieving organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating customer value.