Without knowing anything about the personal ethics of the owners, which company would you better trust to keep its word in a business deal?
a. Harry’s Hardware has been in business for 50 years. Harry’s grandchildren, now almost adults, plan to take over and operate the business. Hardware stores require considerable investment in customer relations to become established.
b. Victor’s Videos just opened for business. It rents a storefront in a strip mall and has financed its inventory with a bank loan. Victor has little of his own money invested in the business. Video shops usually command little customer loyalty.