Customer Relationship Management

question 96

Multiple Choice

Customer relationship management:

• A) is often described as a closed-loop system
• B) only involves personnel in marketing and management departments
• C) organizes the company around functional departments
• D) is a very simplistic method of encouraging customer satisfaction
• E) is only a theory and has not been proven successful in any practical way

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, influenced by the proportion of fixed costs in a company's cost structure.

Financial Leverage

Leveraging debt to boost the potential yield of an investment.

Total Leverage

A measure that combines both operating and financial leverage to assess a company's total sensitivity to changes in output levels affecting its earnings before interest and taxes.

Stock Prices

The current market price at which shares of a company are bought and sold.