Joan Johnson is a paralegal for a large law firm that handles corporate and securities work. The lawyer for whom Joan works always introduces her to clients and encourages clients to call her for updates on matters. Joan enjoys this work and is good at it. One day a client, Ken Kaplan, calls her about a new corporate entity he is forming. He explains what the corporation will do and asks whether it would be better to incorporate in New York or in Delaware. Can Joan answer? What should she do? What are the consequences of the different actions she might take?

1. Based on her years of experience, Joan Johnson can answer the question by detailing the advantages and disadvantages of incorporating in each state for the client.

2. If Joan does not feel confident enough to address the question, then she can refer the matter to her supervisor.

3. If Joan answers, the client will derive immediate satisfaction and will be confident to continue the relationship with the firm.  This is because his awareness that the firm can address his questions is re-enforced.

4. If Joan does not answer the client immediately, the client may feel that the firm's personnel are not well-trained and are unable to handle not-too difficult technical issues.

Explanation:

A firm's clients usually require immediate clarifications whenever they ask their questions.  Therefore, an effective and efficient firm should ensure that its paralegal officers are well-trained and well-informed to handle initial client enquiries while the details are referred to their supervisors.

answer; rapid growth in buyer demand and high buyer switching cost;

answer; personality;