1.4 Harry's has a far bigger stake in the reputation of its business than Victor's. The store...
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1.4 Harry's has a far bigger stake in the reputation of its business than Victor's. The store has been in business for a long time. The owners have spent years establishing customer loyalty. In contrast, Victor's has just been established. The owner has little of his own money tied up in the firm, and so has little to lose if the business fails. In addition, the nature of the business results in little customer loyalty. Harry's is probably more reliable.
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Fundamentals Of Corporate Finance
ISBN: 9780073382302
6th Edition
Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus
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