When Companies Make It Difficult or Expensive for Customers to Change

question 59

Short Answer

When companies make it difficult or expensive for customers to change to another product this is an example of establishing high _____________ _ costs to gain a competitive advantage.

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Definitions:

Notes Payable

A liability in a company's balance sheet that records amounts the company owes because it borrowed money, or a formal written agreement to pay a specific amount in the future.

Maturity Value

The amount of the note that is due on the date of maturity (Principal + Interest).

Principal Amount

The original sum of money borrowed in a loan, or the original investment in a financial instrument, before interest.