In the Relationship Era, Firms Began to Recognize That Cultivating

question 147

Multiple Choice

In the relationship era, firms began to recognize that cultivating current customers is more profitable than constantly doing which of the following?

• A) partnering with community investors
• B) seeking global competition
• C) creating new goods and services
• D) seeking new customers

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Definitions:

Apparent Authority

A principle in law where a person appears to have authority to act on behalf of another party, such as a company, due to their conduct or statements.

Disclosed Principal

A principal whose identity is known by the third party at the time of entering into a contract with an agent.

Terminates

The act of bringing something to an end or conclusion, often referring to the cessation of agreements, employment, or processes.

Express Authority

Authority granted to an agent in clear, definite terms, verbally or in writing, by the principal in an agency relationship.