The Heterogeneous Nature of Services Means That ________

question 35

Multiple Choice

The heterogeneous nature of services means that ________.

• A) no two services are exactly the same
• B) they cannot be inventoried
• C) customers cannot be involved in the production of the service
• D) production and consumption of services occur simultaneously
• E) cannot be carried in stock over long periods of time

---

Definitions:

Foreign Subsidiary

A foreign subsidiary is a company that is owned or controlled by another company but operates in a different country from the parent company.

Parent Company

is a corporation that owns enough voting stock in another firm to control its board of directors and therefore its operational and financial policies.

Forward Rate

The agreed-upon exchange rate for a currency pair to be traded at a future date, used in forward contracts.

Exchange Rate

The cost of converting one currency into another, establishing the equivalent worth of one currency in relation to another.