Multiple Tables at Red Lobster Were Empty Yesterday Afternoon

question 53

Multiple Choice

Multiple tables at Red Lobster were empty yesterday afternoon. Which characteristic of services is most likely a concern for the restaurant chain?

• A) service intangibility
• B) service perishability
• C) customer participation
• D) product bundling and compatibility

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Definitions:

Quarterly Compounded

Interest is added to the principal every three months, with subsequent interest calculations based on the resulting total.

GIC

A Guaranteed Investment Certificate (GIC) is a type of Canadian investment that offers a guaranteed return over a fixed period.

Monthly Compounded

Interest on an investment or loan is calculated monthly and added to the principal, allowing the interest to earn interest in subsequent months.

Nominal Rate

The stated interest rate of an investment or loan, not accounting for compounding or inflation effects.