The net present value of a customer is:
a. a measure of how customers assess the benefits of a product in making purchase decisions.
b. a measure of the likelihood that satisfied customers will recommend the product to other customers.
c. the total profits (revenues associated with a customer minus the expenses needed to serve a customer) discounted over time.
d. the total value of the benefits offered by a customer in a customer-supplier partnership.
c
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If you were John Mack, CEO of Morgan Stanley, and Arthur Sulzberger phoned you to say he was planning on moving his family’s assets from you bank, how would you respond?
Answer the following statements true (T) or false (F)
1. When a company invests in equity securities with 20% to 50% ownership in the investee's voting stock, the investor can significantly influence the investee's decisions. 2. Investments accounted for by the equity method are recorded at cost at the time of purchase. 3. Significant influence equity investments must be accounted for using the equity method. 4. Under the equity method, the Equity Investments account is debited for the receipt of a dividend because the dividend increases the investee's equity.
Gnome Company is deciding whether to continue to manufacture a component or to buy the component from a supplier. Which of the following is relevant to this decision?
A) the potential uses of the facilities that are currently used to manufacture the component B) the insurance on the manufacturing facility that will continue regardless of the decision C) fixed costs that do not differ between the alternatives D) the cost of the equipment that is currently being used to manufacture the component
Which of the following is the correct singular-plural pair of words?
A. Father-in-law and Fathers-in-law B. Chief of staff and Chief of staffs C. General Manager and Generals Manager D. Mother-in-law and Mother-in-laws