Which of the following is not a reason a company would be willing to accept new business at a loss?
A)The company has the expectation that it will make up for it in later years.
B)The company has the expectation that certain customers can influence other potential customers.
C)The company has the expectation that its estimates will prove incorrect and that the business will result in a profit.
D)The company has the expectation that it can acquire the customer on a permanent basis by offering a special price upfront.

Question

Quizplus · Accepted Answer

Companies would not typically accept new business at a loss with the expectation that their estimates will prove incorrect and that the business will result in a profit. This would be a risky strategy as it relies on chance rather than a sound financial analysis or strategy. The other options listed (A, B, and D) are all valid reasons why a company may accept new business at a loss.

Which of the Following Is Not a Reason a Company