Since It Can Cost Five Times as Much to Acquire

question 68

Multiple Choice

Since it can cost five times as much to acquire a new customer than to service an existing one,it is important for salespersons to:

• A)exclusively focus on maximizing profits.
• B)generate as many leads as possible through cold calling.
• C)implement the endless chain approach.
• D)build and maintain long-term relationships.

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Definitions:

Cumulative Preferred Stock

Type of preferred stock where missed dividend payments accumulate and must be paid out before dividends can be distributed to common stockholders.

Dividends Per Share

The amount of declared dividends for every share of common stock issued.

Common Stock

Common stock represents units of ownership in a public corporation, giving holders voting rights and a share in the company's profits via dividends.

Dividend Distribution

The payment of earnings to shareholders, typically in cash or additional shares, approved by the company's board of directors.