The Shift to a Service Economy Is an Example of A(n)

question 7

Multiple Choice

The shift to a service economy is an example of a(n) ________ force.

• A) technological
• B) social, cultural, demographic, and environment (SCDE)
• C) economic
• D) legal
• E) political

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Definitions:

Profitability

A measure of the efficiency and effectiveness of a company in generating profits from its operations.

Mixed Costs

Expenses that have both fixed and variable components, meaning part of the cost varies with the level of output while part remains constant.

Contribution Margin

The difference between sales revenue and the variable costs associated with the production or sale of products or services. It's used to determine the ability of a business to cover its fixed costs.

Margin of Safety

This financial ratio measures the difference between actual or expected sales and the break-even point, indicating the cushion a company has before it incurs a loss.