All of the Following Statements About Intangible Benefits in Capital

question 129

Multiple Choice

All of the following statements about intangible benefits in capital budgeting are correct except that they

• A) include increased quality and employee loyalty.
• B) are difficult to quantify.
• C) are often ignored in capital budgeting decisions.
• D) cannot be incorporated into the NPV calculation.

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Definitions:

Tangibility

The physical existence of a product, making it possible to touch, see, and directly experience it.

Service Quality

Evaluating how closely a provided service aligns with what the customer anticipated.

Responsiveness

The quality of reacting quickly and positively, often used in the context of organizations dealing with customer needs or market changes.

Empathy

The ability to understand and share the feelings of another individual, often considered a critical skill in effective sales and customer service.