Unused Capacity in the Form of an Empty Seen on an Airplane

question 20

Multiple Choice

Unused capacity in the form of an empty seen on an airplane becomes non-salable quickly.Once the plane has taken off,selling an empty seat is virtually impossible.An empty airplane seat provides an example of the ________ of services.

• A)perishability
• B)service capacity
• C)customer involvement
• D)intangibility
• E)transparency

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Definitions:

Cash-Flow Projections

Estimates of a company's future financial liquidity over a specific period, accounting for incoming and outgoing cash.

First Year

Pertains to the initial period of time, typically referring to the first 12 months, in various contexts such as a company's operations, an educational program, or an individual's experience in a new role.

Business

Business refers to the organized efforts and activities of individuals to produce and sell goods and services for profit.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.