Services Often Invite Performance and Pricing Abuses for Which of the Following

question 59

Multiple Choice

Services often invite performance and pricing abuses for which of the following reasons?

• A)Customers may not be present when the work is being performed.
• B)Customers may not have the technical skills necessary to evaluate performance.
• C)Quality and benefits may be difficult to evaluate even after delivery.
• D)Customers may not be able to assess the amount, if any, of work done.
• E)All of the above

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Definitions:

Descending Order of Liquidity

Ranking assets on a balance sheet from the most liquid (easily converted into cash) to the least liquid.

Debt and Equity Financing

The methods by which a company raises capital to finance its operations or expand its business, involving borrowing (debt) or selling shares (equity).

Investing Activities

Transactions and events that involve the purchase and sale of long-term assets and other investments not generally considered cash equivalents.

Capital to Purchase Fixed Assets

Financial resources allocated for the purchase of long-term physical assets that a company uses in its operations.