Which of the following statements does not describe how retailers use a customer lifetime value (CLV)?
A. Sophisticated statistical methods are typically used to estimate the future contributions from past purchases.
B. CLV is used to identify and cater to the best and more profitable customers.
C. A customer who spends $800 twice a year has a higher CLV than a customer that spends $100 each month.
D. An RFM analysis is often used by catalog retailers and direct marketers in estimating their customers' lifetime value.
E. CLV should be estimated under the assumption that the customer's future purchase behaviors will be the same as they have been in the past.
Answer: C
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Which of the following statements about the times-interest-earned ratio is TRUE?
A) A lower ratio indicates a higher debt paying ability. B) Debt reduction leads to an increase in interest expense. C) The times-interest-earned ratio is also called the interest-coverage ratio. D) The times-interest-earned ratio is calculated by dividing gross income by interest expense.
To close a sale more effectively, it helps to look at the value proposition:
A) from the customer's point of view B) from the competition's point of view C) as a made-up concept D) as the objective to reach for E) to determine which type of close to use
How should a public relations crisis be managed?
What will be an ideal response?
Robert is a pastor at United Church. One of the members of his congregation, Mrs. Smith, is a
very devout believer. Robert convinces Mrs. Smith to sell him her farm for $5,000. The actual value of the farm is $500,000. Mrs. Smith dies and her estate sues to get her farm back. Which of the following best describes this situation? A) This is a case of undue influence, so the estate can rescind the contract. B) This is a case of fraud, so the estate can rescind the contract. C) Unless Robert can prove that there was no undue influence, the contract can be rescinded. D) Mrs. Smith is a competent adult and may dispose of her property in any way, and for any price she sees fit. E) This is not a case of undue influence because there is no fiduciary relationship.