A Danger of Developing a New Business Over Acquiring an Existing

question 72

Multiple Choice

A danger of developing a new business over acquiring an existing one is that the firm may ________.

• A) lose customers
• B) lose economies of scale and scope
• C) expend existing resources
• D) spend too much money on technology

Recognize the role of employees and employee actions in shaping customer perceptions of service quality.

Understand the concept and application of off-peak pricing to manage service demand.

Identify the expanded marketing mix (the seven Ps) for services and their significance in services marketing.

Understand the role of relationship marketing and its benefits in the context of service businesses.

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Definitions:

Operating Expenses

Recurring expenses incurred through normal business operations, such as rent, utilities, and payroll, excluding COGS.

Cash Payments

Transactions that involve the direct transfer of money to settle obligations, including expenses, debts, or purchases, without the use of credit.

Accounts Receivable

Money owed to a company by customers for products or services that have been delivered or used but not yet paid for.

Income Tax Payable

This represents the amount of income tax that a company owes to the government but has not yet paid.