Wealth and Wealth Bank Utilizes the Janitorial Services of Rob's

question 19

Multiple Choice

Wealth and Wealth Bank utilizes the janitorial services of Rob's Scrub-All 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 does this illustrate?

• A) High employment costs
• B) Unfavorable supplier status
• C) High switching costs
• D) Favorable quality status
• E) Complementary products

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Definitions:

Personal Property

Movable property that is not fixed to one location and can be owned by an individual, as opposed to real property or real estate.

Mutual-Benefit Bailment

A contractual agreement where both the bailor and bailee receive benefits from the arrangement of temporarily transferring personal property.

Financing Statement

A document filed to give public notice of a security interest in collateral, providing information about the debtor, secured party, and collateral.

Proceeds

The amount of money received from a transaction, especially after selling an asset or completing a deal.