Which of the Following Statements Regarding the Place Element of Services

question 49

Multiple Choice

Which of the following statements regarding the place element of services is most accurate?

• A) Place has little impact on the marketing of services because there are so many intermediaries from which a consumer may choose.
• B) The distribution site as well as the service provider are the intangible components of the service.
• C) Place is an especially important factor because of the inconsistency between the service and the service provider.
• D) As competition grows in service industries, the value of convenient distribution is being recognized.
• E) Technology is an effective way to bring services to the customer, but not those that are information-based.

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Definitions:

Debt to Stockholders' Equity

A financial ratio that measures the company's financial leverage by comparing its total liabilities to stockholders' equity.

Capital Lease

A lease treated like a purchase by the lessee in accounting, meaning the leased asset is included on the balance sheet, and the corresponding lease obligation is treated as a liability.

Operating Lease

A lease agreement that allows for the use of an asset but does not convey rights of ownership to the lessee.

GAAP

GAAP (Generally Accepted Accounting Principles) is a collection of commonly-followed accounting rules and standards for financial reporting.