High Switching Cost Refers to

question 40

Multiple Choice

High switching cost refers to

• A)a strategy used by telecom providers to retain customers.
• B)a strategy employed by companies to lock in customers by making it difficult or expensive to switch to another product.
• C)an illegal tactic that prevents customers from leaving by charging a prohibitive service termination fee.
• D)a strategy employed by companies to prevent customers from renegotiating service contracts.
• E)a service charge that discourages customers from switching service providers.

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Definitions:

Received Cash

The inflow of cash to a business, recorded on the financial statements when cash is received from customers, loans, or other sources.

Accounts Payable Subsidiary Ledger

A detailed ledger that contains all individual transactions related to accounts payable.

Payments To Creditors

Money paid out by a business to settle debts owed to suppliers or lenders for goods, services, or loans.

Purchases On Account

Transactions where goods are acquired on credit, with payment to be made at a later date.