Which of the Following Would Have the Lowest Switching Costs

question 126

Multiple Choice

Which of the following would have the lowest switching costs?

• A) a customer ordering from Papa John's instead Pizza Hut
• B) an individual getting rid of a PS3 game system and beginning to use a Wii game system
• C) a company changing from a QWERTY keyboard to a keyboard with a different format
• D) a customer moving a bank account from one bank to another

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Definitions:

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a proportionate share in the company's profits through dividends or capital appreciation.

Bonds Payable

Long-term debt instruments issued by a company to investors, promising to pay back a specified sum of money at a future date along with periodic interest payments.

Cash Dividends

Payments made by a corporation to its shareholders from earnings, usually in the form of cash.

Direct Method

A methodology applied in cash flow statements to present major classes of gross cash receipts and payments, offering a clear view of cash flow from operating activities.