Because Services Cannot Be Stored

question 49

Multiple Choice

Because services cannot be stored:

• A)much greater pricing flexibility must be maintained.
• B)much greater responsiveness to demand fluctuation must exist.
• C)much greater service emphasis must be used to counter demand and price fluctuation.
• D)much greater pricing flexibility must be maintained and much greater responsiveness to demand fluctuation must exist.

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Definitions:

Liability

Legal responsibility for one's actions or inactions, which may result in financial restitution or penalties.

Fiduciary Duty

A legal obligation requiring one party (the fiduciary) to act solely in another party's (the beneficiary's) interest when managing the latter's assets, involving loyalty and care.

Shareholder's Legal Duties

Obligations imposed on shareholders, including acting in the best interest of the corporation and adhering to corporate laws and regulations.

Majority Shareholders

Individuals or entities that own more than half of the total shares of a corporation, giving them significant control over company decisions.