Identify the Incorrect Statement Concerning Services

question 59

Multiple Choice

Identify the incorrect statement concerning services.

• A) Customers are often heavily involved in their production.
• B) They often involve long-term personal relationship between buyers and sellers.
• C) They cannot be inventoried, stored, or transported.
• D) Customers own the services and they can be used, resold, or given to others.

---

Definitions:

Par Value

The face value of a bond or stock, which is the amount paid back to the bondholder at maturity, or a nominal value of a share as stated in the corporation's charter.

Required Return

Required Return is the minimum rate of return an investor expects to receive from an investment considering its risk level.

Yield To Maturity

The total return expected on a bond if it is held until the maturity date, considering all payments from the bond including coupon and principal repayment.

Coupon

The interest rate paid every year on a bond, presented as a percentage of its par value.