Once a Long-Term Contract with a Supplier Has Been Executed

question 41

True/False

Once a long-term contract with a supplier has been executed, it is much more difficult (and expensive) to switch suppliers.

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Definitions:

Judgment Debtor

An individual or entity ordered by a court to pay a sum of money to another as a result of a legal judgment.

Creditor

An individual or institution to whom money is owed by a debtor.

Guarantor

A person or entity that agrees to be responsible for another's debt or performance under a contract if the original party fails to meet their obligations.

Debtor

An individual or organization that owes money to another party, often referred to in contexts involving loans or credit.