Many Business Offerings Are Composed of a Combination of Product

question 65

Multiple Choice

Many business offerings are composed of a combination of product and service elements. From the following, choose the correct ordering, from tangible dominant to intangible dominant, of the items listed.

• A)industrial grease, executive management seminars, convention hotel
• B)executive management seminars, industrial grease, convention hotel
• C)convention hotel, industrial grease, executive management seminars
• D)convention hotel, executive management seminars, industrial grease
• E)industrial grease, convention hotel, executive management seminars

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Definitions:

Inflationary Pressures

Situations or factors that lead to an overall increase in prices, reducing purchasing power in an economy.

Interest Rates

This represents the cost, in percentage terms of the principal, that a borrower incurs from a lender to utilize their assets.

Maturity Risk

The risk of loss to an investor from changes in the price of a bond that arise from changes in the market interest rate. Also called price risk and interest rate risk. The term maturity risk emphasizes the fact that interest-induced price changes are larger with longer maturities.

Bond Prices

The market price for which a bond is bought or sold, influenced by interest rates, credit quality, and other factors.