What is the term for a guarantee of the soundness of a product or service?

A warranty is a term that refers to a guarantee provided by a manufacturer or seller regarding the quality and soundness of a product or service. This guarantee typically assures the buyer that the product will perform as promised and remain free of defects for a certain period of time. If the product fails to meet the specified standards during the warranty period, the manufacturer or seller typically agrees to repair, replace, or refund the item, thus providing the consumer with a level of security and trust in their purchase.

Warranties are crucial in establishing customer confidence and loyalty, as they demonstrate that the business stands behind its products. Such assurances can influence purchasing decisions, as customers may be more inclined to buy from companies that offer strong warranty protections.

The other choices do not accurately represent this concept. A loss leader is a pricing strategy intended to attract customers by selling a product at a price lower than its cost to stimulate sales of other, more profitable items. Equity refers to ownership in an asset after liabilities are deducted, often in the context of stocks or property. Bonds are debt securities issued to raise funds, where the issuer is obliged to repay the bondholder at a specified time with interest. None of these terms convey the idea of a guarantee regarding product or service quality like a