Credence Qualities of a Service Are Difficult to Evaluate Before

question 117

True/False

Credence qualities of a service are difficult to evaluate before purchase, but easy to evaluate after consumption.

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Definitions:

Dividends Received

Income earned from investments in the form of payments distributed by a corporation to its shareholders.

Minority Interest

The portion of subsidiary companies' equity (net assets) that is not owned by the parent company; represents the outside shareholders' percentage of ownership in the subsidiary.

Parent Company

A corporation that owns enough voting stock in another corporation to control its management and operations, making the latter a subsidiary.

Outstanding Stock

The stock in the hands of stockholders.