When Comparing Manufacturing and Service Operations, It Is Correct to Say

question 163

Multiple Choice

When comparing manufacturing and service operations, it is correct to say that

• A) only manufacturing operations transform raw materials into finished products.
• B) most service operations are pure service.
• C) service operations are more complex than goods production.
• D) quality considerations are defined and managed in a similar way in both the service sector and in manufacturing operations.
• E) all of these statements are correct.

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Definitions:

Continuous Compounding

Continuous compounding refers to the process of calculating interest on an investment, where the interest amount is reinvested and earns additional interest continuously, leading to exponential growth.

Sharpe Ratio

A metric used to assess the risk-adjusted return of an investment portfolio.

Small U.S. Stocks

Small U.S. stocks are shares issued by companies with relatively small market capitalization, typically considered to offer higher growth potential but with increased risk compared to large-cap stocks.

Long-Term U.S. Treasury Bonds

Government bonds issued by the United States Department of the Treasury with maturities typically longer than 10 years, providing stable income with low risk.