Wright Bank Corp

question 10

Multiple Choice

Wright Bank Corp. utilizes the janitorial services of Rob's Scrub-All Corp. to keep their buildings clean. Rob's provides all the necessary cleaning supplies, training, background security checks since the crew works after hours) , and all other associated expenses. The other available janitorial services do not typically provide security checks, and a client such as a bank would have to hire guards to watch the work of the janitors. This expense effectively limits the bank to utilizing only Rob's services. Which of the following is being incurred by Wright Bank?

• A) high employment costs
• B) unfavorable supplier status
• C) high switching costs
• D) favorable quality status
• E) complementary products

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Definitions:

Net Working Capital

A financial metric that represents the difference between a company's current assets and its current liabilities.

Total Assets Ratio

A financial metric that compares the total assets of a company to its sales or revenues, indicating how efficiently a company uses its assets.

Uses of Cash

The various ways in which a company or individual allocates cash resources, including operating expenses, investments, and financing activities.

Fixed Assets

Durable physical assets utilized in the running of a company, which aren't anticipated to be expended or turned into cash within one year.