In Managing Customer Relationships, the Three Primary Ways Profits Can

question 116

Multiple Choice

In managing customer relationships, the three primary ways profits can be obtained are by

• A)acquiring new customers, enhancing the profitability of new customers, and shortening the duration of relationships with existing customers.
• B)enhancing the profitability of existing customers, eliminating customers who provide smaller profits, and finding new customers.
• C)extending the length of relationships with customers, cutting organizational costs, and enhancing the profitability of new customers.
• D)eliminating long-term customers who have decreased purchases, finding new customers, and increasing sales to existing customers.
• E)enhancing the profitability of existing customers, extending the duration of relationships with customers, and obtaining new customers.

Understand the components and computation of return on equity and return on total assets.

Grasp the concept of financial leverage, including its effect on company's equity and debt structure.

Recognize the impact of share transactions and asset sales on a company's financial ratios.

Understand liquidity and solvency ratios, particularly the current ratio and acid-test (quick) ratio.

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Definitions:

Task Responsibilities

The duties and obligations associated with a specific job or role.

Work Standards

The established criteria or benchmarks that define the expected quality and quantity of work to be performed.

Performance Monitoring

The process of continuously observing and evaluating the performance of individuals or systems to ensure objectives are being met.

Supportiveness

The quality of providing encouragement, assistance, and comfort to others, fostering a positive environment.