Question

What is the basic model that includes extended warranties and service plans?

1) Extended warranty model
2) Service plan model
3) Basic model
4) None of the above

Answer 1

The basic model including both extended warranties and service plans is the Extended Warranty Model. This combines the provision of a basic warranty and the option to purchase an additional service contract for extended coverage. (Option 1).

Step-by-step explanation:

The basic model that includes both extended warranties and service plans is known as the Extended Warranty Model.

When purchasing items such as cars, appliances, or houses, sellers may offer a basic warranty which covers repairs or replacement for a certain period of time.

Moreover, they may also provide the option to purchase a service contract for an extra amount, which extends this promise and covers additional repairs or issues for a longer time period. (Option 1).