Loss-Causing Customers

question 88

Multiple Choice

Loss-causing customers:

• A)should be dropped
• B)should be evaluated for ways to become profitable customers
• C)should be retained because each customer adds to long-run profitability
• D)do not exist because additional customer sales always increase profits

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Definitions:

Oral Contracts

Agreements between parties that are spoken rather than written but are still legally binding.

Real Estate Mortgage

A legal agreement where real property is used as collateral for a loan.

Statute of Frauds

A legal principle requiring certain types of contracts to be executed in writing to be enforceable.

Sale of Goods

A commercial transaction where the ownership of physical products is transferred from the seller to the buyer for a price.