In Which Situation Is a Business Least Vulnerable to Defections

question 28

Multiple Choice

In which situation is a business least vulnerable to defections?

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

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Definitions:

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific point in time, detailing assets, liabilities, and shareholders' equity.

Statement of Cash Flows

A document that outlines the effect of changes in income and balance sheet accounts on cash and cash equivalents, divided into sections for operating, investing, and financing activities.

Cash Transactions

Financial activities that involve the exchange of cash between two parties.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, giving a snapshot of its financial condition.