Which of the Following Is True of Services

question 93

Multiple Choice

Which of the following is true of services?

• A) Services are tangible.
• B) Services are inseparable from service providers.
• C) Companies can easily standardize services.
• D) Services are nonperishable.

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Definitions:

ROEs

Return on Equity, an indicator of financial efficiency determined by dividing a company's net income by its shareholders' equity, reflects how well management utilizes company assets to generate earnings.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity that it uses to finance its overall operations.

Current Assets

Current Assets are all assets of a company that are expected to be sold, used, or consumed within one year in the normal course of business.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, often used for managing liquidity and ensuring a company can meet its short-term obligations.