For a New Manufacturer Managing Product Support for Its Equipment

question 26

Multiple Choice

For a new manufacturer managing product support for its equipment, what is usually the first strategy for postsale service?

• A) letting customers hire their own service people to work on-site
• B) letting independent services handle repairs and maintenance
• C) pricing equipment high and charging low prices for service
• D) running the company's own parts-and-service department
• E) switching maintenance services to authorized distributors

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Definitions:

Note

A written agreement or promissory note where one party agrees to pay another under specified conditions, often used in reference to loans or debts.

Assets

Resources owned by a business or individual deemed to have economic value and expected to provide future benefits.

Liabilities

Financial obligations or debts a company owes to others, due to be paid in the future.

Accounts Payable

describes the short-term liabilities a company owes to its suppliers or creditors for goods or services received but not yet paid for.