Which of the Following Is an Example of a Gap

question 133

Multiple Choice

Which of the following is an example of a gap between service delivery and external communications?

• A) The employees at GBL have been asked to take time to listen to customers, but they must serve them fast as well.
• B) Amanda chose to shop at Alison's Fashions because the store's Web site offered on-the-spot alterations. However, when she did buy a dress, she had to wait a week to get it altered.
• C) Customers at LUX appreciate the personalized services the salespeople offer, but do not like the store design.
• D) Clearwater Spa attendants are well-trained in massage therapy and the services they offer, but customers rarely return because they don't like the attendants' impersonal service.
• E) When sales dropped, Styx modernized its stores in order to retain customers, but didn't realize that the product quality was the main problem.

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Definitions:

Cash Conversion Cycle

A metric that shows the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Operating Cycle

The period between the acquisition of inventory and the collection of cash from receivables.

Compensating Balances

Compensating balances are minimum balance requirements that a bank may impose on a borrower, kept in a non-interest-bearing account, as part of loan agreements.

Cash Conversion Cycle

The cash conversion cycle measures the time it takes for a company to convert resource inputs into cash flows, indicating the efficiency of managing inventory and receivables.