Question

You decide also to conduct a qualitative analysis based on the factors summarized by the American Association of Individual Investors (AAII). According to your understanding, a company with one key customer is considered to beless risky than companies with several customers.A. TrueB. False

Answer 1

Answer:

The correct answer is the option: False.

Explanation:

To begin with, if a company has one key customer then the most common situation is that the company is more likely to be in risk if the organization losses that customer, meanwhile the other companies that have more clients that only an important one are likely to survive longer due to the fact that if one client abandon it then that business will have many others in which to support the sales. In the other case, where the company only has one key customer then in the case that the client abandon, the company will have to struggle and find a new one sooner in order to keep the sales.