Why Is the Demand for Most Services--Such as Popular Restaurants--Extremely

question 6

Multiple Choice

Why is the demand for most services--such as popular restaurants--extremely time-and-place dependent?

• A) because popular services typically lack sufficient capacity
• B) because services cannot be stored for future use
• C) because customers must be present for service to be delivered
• D) because service customers are typically unsure of their needs
• E) because competing services force customers to make tradeoffs between quality and time

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Definitions:

Accrued Interest

Interest that has been earned but not yet paid, typically relating to bonds or loans, accruing daily until the payment date.

Interest Payment Periods

The specific intervals at which interest payments are made on a debt instrument, such as monthly, quarterly, or annually.

Bonds Payable

Long-term liabilities representing money a company owes to bondholders, to be repaid at a specific future date, along with interest payments.

Discount Account

An account used in bookkeeping to record reductions in the list price of something, such as merchandise sold or loans issued.