The Goods-Services Continuum Consists of Which Set of the Following

question 50

Multiple Choice

The goods-services continuum consists of which set of the following categories?

• A) No goods, some goods, even mix, some service, no service
• B) Pure goods, core goods, core services, pure services
• C) No service, some service, good service, excellent service
• D) Self-service, help desk service, face-to-face service, service-with-a-smile
• E) None of these choices are correct

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Definitions:

Pro Forma Financial Statements

Financial statements based on hypothetical scenarios or assumptions about the future of a business.

Spontaneously Generated Funds

Funds generated if a liability account increases spontaneously (automatically) as sales increase. An increase in a liability account is a source of funds; thus, funds have been generated. Two examples of spontaneous liability accounts are accounts payable and accrued wages. Note that notes payable, although a current liability account, is not a spontaneous source of funds since an increase in notes payable requires a specific action between the firm and a creditor.

AFN Formula

Additional Funds Needed formula, a financial tool used to estimate the additional amount of financing a firm will require in the future.

Forecasting Method

Techniques used to predict future aspects of a business or the economy, from sales to macroeconomic trends.