Which of the following is true of warranties?
A)They are not important costs in the business world.
B)They leave contracting costs unchanged in the business world.
C)They increase contracting costs in the business world.
D)They reduce contracting costs in the business world.

Question

Quizplus · Accepted Answer

Warranties can actually reduce contracting costs in the business world because they provide assurance to buyers that the product they are purchasing will function as intended for a specified period of time. This reduces the risk for buyers and can result in increased sales and customer loyalty. However, warranties do come at a cost to the business and must be carefully considered in terms of their impact on profitability.

Which of the Following Is True of Warranties