Which of the Following Is True Regarding Services

question 143

Multiple Choice

Which of the following is true regarding services?

• A) Services are typically produced, stored, and then consumed.
• B) Services are generally low in experience and credence qualities.
• C) Service providers develop similar marketing programs for personal services and business services.
• D) There is less risk associated with the purchase of services than with the purchase of goods.
• E) Provider-client interaction is a special feature of services marketing.

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Definitions:

Expenses

Outflows or other using up of assets or incurrence of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major or central operations.

Held-to-maturity Securities

Financial assets purchased with the intention and ability to hold them until a specified maturity date.

Fair Value

The estimated price at which an asset or liability could be sold or settled in a current transaction between willing parties.

Equity Method

An accounting technique used to record investments in associate companies where the investor has significant influence but not full control, recognizing income in proportion to their share of the earnings.