Questions: Listen A popular chain of coffee shops offers an organic variety of coffee grown on its own farms in Guatemala. These farms also distribute about 25% of their crop to several independent coffeehouses in Europe. How would the farm's customers be defined? a) The coffee chain that owns the farms is an internal customer and the European coffeehouses are external customers. b) Because all of the products are shipped outside of Guatemala, both the U.S. chain and the European coffee houses would be external customers. c) The company's U.S. chain of coffee shops would be preferred customers, and the European coffeehouses would simply be "customers." d) The U.S. chain coffee shops would be American customers and the European group would be European customers.

The answer is A: The coffee chain that owns the farms is an internal customer and the European coffeehouses are external customers.

Explanation for each option:

a) The coffee chain that owns the farms is an internal customer and the European coffeehouses are external customers.

• This is correct because an internal customer is typically part of the same organization or company, in this case, the coffee chain that owns the farms. The European coffeehouses, on the other hand, are external customers as they are independent entities purchasing the coffee.

b) Because all of the products are shipped outside of Guatemala, both the U.S. chain and the European coffee houses would be external customers.

• This is incorrect because the geographical location of the shipment does not determine whether a customer is internal or external. The U.S. chain is part of the same company that owns the farms, making it an internal customer.

c) The company's U.S. chain of coffee shops would be preferred customers, and the European coffeehouses would simply be "customers."

• This is incorrect because the term "preferred customers" is not used to distinguish between internal and external customers. The distinction here is about the relationship to the company, not the preference or status of the customer.

d) The U.S. chain of coffee shops would be American customers and the European group would be European customers.

• This is incorrect because it merely states the geographical location of the customers without addressing the internal vs. external customer relationship. The key distinction in the question is about the nature of the customer relationship, not their geographical location.