In Markets Characterized by Complex and Uncertain Technical Environments,such as Where

question 10

Multiple Choice

In markets characterized by complex and uncertain technical environments,such as where competing technologies are emerging simultaneously,as in the networking software industry,customers are:

• A)more likely to keep their options open by spreading their purchases across multiple suppliers.
• B)more likely to develop a long-term orientation toward a single supplier.
• C)more likely to continue with their original supplier,even if their product is losing ground as the industry standard.
• D)more likely to buy goods and services only for their own personal use and consumption.

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Definitions:

Treasury Bills

Short-term government securities issued at a discount from the face value and maturing at their face value to create a return to the investors.

Collection Time

The average period it takes for a business to receive payments owed by its customers after a sale has been made.

Lockbox System

A service provided by banks to companies for receiving payments from customers; payments are sent to a post office box and then quickly processed by the bank.

Money Market Securities

Money Market Securities are short-term debt instruments that are highly liquid and considered safe, such as Treasury bills, certificates of deposit, and commercial paper.