What determines whether sellers pursue basic relationships or full partnerships with customers?
What will be an ideal response?
The type of relationship a seller seeks to create with its customers is dependent on the number of customers and their profitability. A company with many low-margin customers develops basic relationships; a company with just a few high-margin customers invests resources to create full partnerships.
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Stockinger Corporation has provided the following information concerning a capital budgeting project: Investment required in equipment$280,000 Expected life of the project 4 Salvage value of equipment$0 Annual sales$580,000 Annual cash operating expenses$420,000 Working capital requirement$30,000 One-time renovation expense in year 3$80,000 The company's income tax rate is 30% and its after-tax discount rate is 11%. The working capital would be required immediately and would be released for use elsewhere at the end of the project. The company uses straight-line depreciation on all equipment. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.The net present value of the
entire project is closest to: A. $61,763 B. $122,469 C. $81,533 D. $196,000
An example of a form of personal communication is
a. The internet b. Signage c. Press conferences d. Telemarketing e. Gifts
U.S. negotiators tend to
a. make fewer adjustments to opponent's behavior and change their negotiation strategy less. b. change their negotiation strategy less and are less ethnocentric than their opponents. c. use a group oriented negotiation style and make fewer adjustments to opponent's behavior. d. use less ethnocentric behavior than their opponents and use a group oriented negotiation style.
Zync Corporation decides that instead of simply offering a block of its debt securities for sale to the investment banker that submits the highest price, it should do business with a single (one) investment banker. In this case, the issuing costs are determined by using _____.
A. the Securities and Exchange Commission (SEC) B. a competitive bid C. a negotiated deal D. a trade-through arrangement E. a financial intermediation arrangement