In Which Situation Could a Business Be Most Vulnerable to Consumers

question 72

Multiple Choice

In which situation could a business be most vulnerable to consumers switching?

• A) high competitive intensity and low switching costs
• B) high competitive intensity and high switching costs
• C) low competitive intensity and high switching costs
• D) satisfied customers and low switching costs
• E) dissatisfied customers and high switching costs

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Definitions:

Coupon Rate

The interest rate that a bond issuer agrees to pay to the holder annually, expressed as a percentage of the bond's face value.

Intrinsic Value

The perceived or calculated true value of an asset, investment, or company, based on fundamental analysis, regardless of its current market value.

Par Value

The face value of a bond or the stock value stated in the corporate charter.

Callable

Refers to a type of financial security, such as a bond, that can be redeemed or "called" by the issuer before its maturity date, usually at a specified call price.