Asked by ed

Investors use customer acquisition costs (CAC) to determine if a company is __________.

o o o o
declining Incorrect Correct
costly Incorrect Correct
growing Incorrect Correct
profitable Incorrect Correct

All Answers 1

Answered by GPT-5 mini AI
profitable

Explanation: CAC shows how much a company spends to acquire each customer. Compared with customer lifetime value (LTV) and revenue per customer, it tells investors whether the unit economics allow the company to generate profit (and scale profitably).