Klaus's Office Has Always Used Tangerine Computers

question 7

Multiple Choice

Klaus's office has always used Tangerine computers. His technical people have suggested that he switch all his employees over to Vale computers. Klaus is reluctant because it will mean not only replacing all the computers but also buying all new software and taking the time to train everyone. Klaus is worried about

• A)barriers to entry.
• B)benchmarking.
• C)environmental uncertainty.
• D)switching costs.
• E)strategic maneuvering.

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Definitions:

Asset

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Geometric Series

A sequence of numbers where each term after the first is found by multiplying the previous one by a fixed, non-zero number called the ratio.

Infinite

Describing a quantity without end or limit, often used in mathematics or to describe concepts that cannot be quantified.

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