The Degree of Tangible-Intangible Dominance of an Industrial Offering Refers

question 38

Multiple Choice

The degree of tangible-intangible dominance of an industrial offering refers to the:

• A)simultaneous production and consumption of the service.
• B)variability in the quality of the service.
• C)perishability of the offering.
• D)non-ownership of the service purchased.
• E)relative importance accorded, by the buyer, to tangible versus intangible elements.

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Definitions:

Future Cash Flows

The projected cash receipts and payments a company expects to incur over a certain period in the future.

Bond Ratings

Bond ratings are assessments made by credit rating agencies about the creditworthiness of a bond issuer, which affect the interest rates bonds carry.

Default Risk

The risk that a borrower fails to make the promised loan or bond repayments to the lender or bondholders.

Maturity Risk

The risk associated with the length of time until the face value of an investment is returned, affecting its susceptibility to interest rate changes.