If a Firm Promises More Than It Can Deliver

question 95

Multiple Choice

If a firm promises more than it can deliver,

• A)it has created an empowerment gap.
• B)consumers will have a knowledge gap.
• C)it creates a communication gap.
• D)it needs to enact a voice-of-customer program.
• E)perishability becomes a problem.

---

Definitions:

Straight-Line Method

A method of calculating depreciation of an asset which assumes the asset will lose an equal amount of value each year over its useful life.

Diminishing Value

A method of depreciation where an asset loses value at a decreasing rate over time, reflecting its declining usefulness or productivity.

Accounting Rate of Return

A financial ratio that measures the return on investment from a project based on its net income.

Time Value of Money

The concept that money available today is worth more than the same amount in the future due to its earning capacity.