Because of the Inseparability of the Consumption and Production of Services

question 41

True/False

Because of the inseparability of the consumption and production of services, customers often are present when a service is produced.

---

Definitions:

Present Value of Annuity

The current worth of a series of future cash flows, adjusted for interest, often used in calculating loans and investments.

Rate of Return on Investment

A measure of the profitability of an investment, calculated as a percentage of the original investment.

Net Present Value

A financial metric used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period of time.

Compound Interest

Interest earnings calculated on the base principal along with any interest that has previously accumulated from past periods on that principal.