Chain Shop

question 72

Multiple Choice

Chain Shop.com runs on a membership business model,in which an existing member gets a 20 percent rebate if he or she introduces or invites a potential customer to the site.This rebate gets activated once the new member makes a purchase on the site.This is an example of _____.

• A) reference pricing
• B) captive pricing
• C) a random discount
• D) a referral discount

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Definitions:

Revenue

The total amount of money generated by the sale of goods or services related to a company's primary operations.

Accounting Cycle

The process of recording, classifying, summarizing, and interpreting financial transactions over a fiscal period, culminating in the preparation of financial statements.

Purchasing Cycle

A series of steps that a company goes through to acquire goods or services, from the identification of a need to the approval of the invoice for payment.