Which of the following statements is true about customer retention and customer life expectancy?
A) The higher the customer retention rate, the lower the short-term profit impact.
B) As customer retention increases, the customer's life expectancy decreases.
C) Customer life expectancy decreases exponentially with customer retention.
D) In general, it costs five times more to replace than to keep a customer.
E) Higher levels of customer retention have a long-term negative impact on profits.
D
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Farthington Soccer Supplies purchases merchandise from a supplier on credit, terms 2/10, n/30 for $15,300. Assume the company uses a perpetual inventory system, and records purchases using the gross method. When recording the payment of the invoice within the discount period in its cash payments journal, Farthington would enter:
A. $14,994 in the Accounts Payable Dr. column and $14,994 in the Cash Cr. column. B. $15,300 in the Cash Cr. column and $15,300 in the Accounts Payable Dr. column. C. $15,300 in the Cash Cr. column and $15,300 in the Inventory Dr. column. D. $15,300 in the Inventory Cr. column; $14,994 in the Accounts Payable Dr. column; and $306 in the Inventory Cr. column. E. $15,300 in the Accounts Payable Dr. column; $14,994 in the Cash Cr. column; and $306 in the Inventory Cr. column.
Placing a hand on a coworkers shoulder while discussing a project could be understood as a nonverbal signal for what?
A) Confusion B) Empathy C) Teamwork D) Control E) Friendliness
Which of the following is NOT a primary reason for increased size and number of frauds?
a. The advent of computers b. Complex accounting systems c. Increased centralization of businesses d. The Internet
For the following types of companies, discuss whether you think their cash flows from operations, investing, and financing will be positive (the activity provides cash) or negative (the activity uses cash). Provide support for your answer. 1 . Tech
Corporation is a developer of computer software for the gaming industry. The company recently launched its first software title. The company is expanding its operations by hiring additional developers and administrative staff. The company is not yet profitable, but expects to break even within two years. Investors view it as having a first mover advantage and have been happy to invest in the company. 2 . Midwest Corporation is a supplier to the agricultural industry. The company is experiencing its 25th year of profitability, but is concerned that sales have contracted for the fifth year in a row. Midwest prides itself in paying dividends and having no debt on its balance sheet. 3 . Semi Inc manufactures semiconductors. The company has just introduced its ninth new product and is the leader in market share for the industry. The company continues to invest in research and development and expand by purchasing competitors. The company has yet to pay dividends, but is considering it in the future. The company's largest current asset is cash, due to its high profit margin.