A Negative Side of the ________ Is That the Company

question 109

Short Answer

A negative side of the ________ is that the company becomes too reactive.Rather than carry out its own customer relationship strategy,it bases its own moves on competitors' moves.

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Definitions:

Gain On Sale

The profit received from selling a capital asset for more than its purchase price.

Plant Asset

A long-term asset used in the production of goods or services, not expected to be consumed or converted into cash within a year.

Book Value

The worth of an asset as reported in the balance sheet, determined by subtracting any depreciation from the asset's initial cost.

Depreciable Cost

The total amount that an asset’s value can be depreciated over its useful life, excluding salvage value.