Because of Service Perishability, It Is Difficult to Price Services

question 61

True/False

Because of service perishability, it is difficult to price services in a manner that smoothes fluctuations in demand.

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Definitions:

Capital

Financial assets or resources that individuals or companies use to fund their operations and invest in their businesses.

Equity Financing

A method of raising capital through the sale of shares in a company, thereby giving investors ownership interests.

Competitive Advantage

The attribute that allows an organization to outperform its competitors, resulting in greater sales or margins and/or retaining more customers.

Cash Flow

Refers to the total amount of money being transferred into and out of a business, especially as affecting liquidity.