In a new task buying situation, the customer firm has had experience securing the product or service, but managers need to reevaluate alternatives

What is the key difference between an agreement and a contract?

A) A contract is always enforceable in the court of law, while an acceptance may or may not be. B) A contract can only be between two individuals, while an acceptance can have two or more people involved. C) A contract requires mutual assent from all parties, while an acceptance needs only to be accepted by a majority of people involved. D) A contract need not be legally binding, while an agreement must be legally binding.

Funded risk assumption:

A) is typically done through a subsidiary on Bermuda or the Cayman Islands B) increases moral hazard for the firm C) is when a firm assumes by creating a liquid or near liquid cash reserve D) is a form of risk transfer