When the Buyer Is Purchasing a Company's Capability in a Particular

question 38

Multiple Choice

When the buyer is purchasing a company's capability in a particular area, such as maintenance or machine repair, the customer is buying:

• A)a catalog item.
• B)an industrial service.
• C)a custom-designed item.
• D)a generic product class.
• E)a specialty item.

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Definitions:

Liability

The state of being legally responsible for something, especially in terms of debts or legal obligations.

Duty of Accounting

An agent’s obligation to keep an accurate account of the transactions of money and property made on behalf of the principal.

Agent

A representative authorized to act on behalf of another person or organization, especially in business or legal matters.

Principal

The original amount of money invested or loaned, upon which interest is calculated, or the main party involved in a transaction.