Inadequate Customer Communication Occurs When

question 50

Multiple Choice

Inadequate customer communication occurs when:

• A) The services have synchronized supply and demand
• B) Customers are experienced users of the service
• C) The services are low in credence qualities
• D) The service is difficult for the customer to evaluate even after it has been delivered
• E) The services are high priced

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Definitions:

Interest-Bearing Note

A debt instrument that obliges the issuer to pay interest to the holder on the principal amount until maturity.

Forward Contracts

Financial derivatives that obligate the buyer to purchase, and the seller to sell, a particular asset at a predetermined future date and price.

Fair Value Hedge

A hedge of the exposure to changes in fair value of an asset or liability, or an unidentified firm commitment, that is attributable to a particular risk.

Cash Flow Hedge

A type of hedge that protects against the variability in cash flows arising from a particular risk, such as interest rate movements or currency fluctuations.