Which of the following statements is true of the customer pyramid?

A. Customers in the gold segment are the most profitable and loyal customers.
B. Customers in the platinum segment place little emphasis on customer service.
C. Customers in the lead segment buy merchandise on sale or abuse return privileges.
D. Customers in the iron segment need special attention from the retailer to grow their potential to be better customers.
E. All customers regardless of their segment must receive equitable promotional benefits.


Answer: C

Business

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Silvana Inc. projects the following data for the coming year. If the firm follows the residual dividend policy and also maintains its target capital structure, what will its payout ratio be? EBIT$2,000,000 Capital budget$850,000 Interest rate10% % Debt40% Debt outstanding$5,000,000 % Equity60% Shares outstanding$5,000,000 Tax rate25%

A. 46.9% B. 49.3% C. 51.9% D. 54.7% E. 57.4%

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On March 1, Sue transfers stock worth $20,000 to Frank. How long must Sue live to avoid inclusion of the $20,000 of stock in her gross estate?

A. one year B. three years C. six months D. No minimum time period exists, but she must be alive at transfer of ownership.

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Last year Rocco Corporation's sales were $700 million. If sales grow at 6% per year, how large (in millions) will they be 5 years later?

A. $974.23 B. $749.41 C. $1,133.48 D. $1,096.01 E. $936.76

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The degree to which a firm is able to "think globally, act locally" affects the success of the firm's _________________ strategy as it goes international.

A. localization B. customization C. globalization D. nationalization E. culturalization

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