Which of the Following Is a Characteristic of a Service

question 16

Multiple Choice

Which of the following is a characteristic of a service?

• A) The service is essentially tangible.
• B) The service does not result in the ownership of anything.
• C) The service's production is majorly tied to a physical product.
• D) Services are typically produced and consumed at different times.
• E) A client's presence is not required for rendering a service.

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Definitions:

Compounded Monthly

Refers to the process of calculating interest where the accumulated interest is added to the principal sum at the end of each month, leading to "interest on interest."

Present Value

The contemporary valuation of future monetary sums or cash flow streams, determined by an established rate of profit.

Compounded Annually

Compounded annually is an interest calculation method where the interest earned in one year is added to the principal, and the total becomes the basis for calculating the interest in the following year.

Present Value

The modern assessment of a future money total or cash flow sequence, applying a distinct rate of return.