Which of the Following Is Not an Example of an External

question 92

Multiple Choice

Which of the following is not an example of an external failure cost?

• A) Accepting company liability resulting from product failure.
• B) Experiencing decreasing sales as a result of poor-quality products.
• C) Repairing or replacing defective products after they've been sold.
• D) Testing products in use at the customer's site.

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Definitions:

Negligence

The failure to exercise the care that a reasonably prudent person would exercise in like circumstances, resulting in harm or damage.

Arbitration Agreement

A contract in which parties agree to resolve disputes outside of court, typically by a neutral third party called an arbitrator.

Court Action

Legal proceedings initiated to enforce a right or seek a remedy from a court of law.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature that affects an individual's employment or creates a hostile work environment.