Service Characteristics Like Intangibility, Inseparability, Perishability Etc

question 3

Multiple Choice

Service characteristics like intangibility, inseparability, perishability etc. often have a significant impact on

• A) tracking customer grievances.
• B) production design and development.
• C) marketing program development.
• D) the research and development technology.

Define contribution margin and its role in pricing and cost management.

Recognize the distinct impacts of operating and financial leverage on business risk.

Explain how leverage affects a firm’s stock price and capital structure optimization.

Analyze the implications of financial theories, including Modigliani and Miller’s propositions, on firm value and capital structure.

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Definitions:

Unpaid Dividends

Dividends that have been declared by a company’s board of directors but have not yet been paid out to shareholders.