A Pure Service Organization Has

question 28

Multiple Choice

A pure service organization has

• A)no raw materials, no inventories, and a definite separation between the plant and the customer.
• B)raw materials, tangible items, and no separation between the plant and the customer.
• C)no raw materials, no tangible items, and no separation between the plant and the customer.
• D)none of these.

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Definitions:

Potential Loss

The possibility of suffering a reduction in value, financial or otherwise, due to unforeseen risks.

Destruction

Destruction refers to the act of causing such significant damage to something that it loses its value, function, or identity.

Damage

Damage refers to the loss or injury suffered as a result of an act or omission, which may be subject to compensation in legal terms.

Agreement to Sell

A contractual arrangement where a seller agrees to transfer goods or services to a buyer at a future date, under specified conditions.