Which of the Following Is NOT One of the Productive

question 39

Multiple Choice

Which of the following is NOT one of the productive capacity forms in a service context?

• A)Physical facilities designed to contain customers
• B)Physical equipment used to process people, possessions, or information
• C)Customers
• D)Labor
• E)Infrastructure

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Definitions:

Straight-Line Method

A way of calculating depreciation by evenly spreading the cost of an asset over its useful life.

Premium Amortization

The gradual reduction of the premium paid above the face value of a bond, allocated over the life of the bond.

Bond Premium

The difference between the selling price of a bond and the bond’s face value when the bond is sold for more than par.

Effective-Interest Amortization

A method of amortizing a bond discount or bond premium that reflects the effective interest rate a company pays bondholders over the life of a bond.