Bethany Has Just Opened a New Service Business Called Paws

question 236

Multiple Choice

Bethany has just opened a new service business called Paws n' Claws, which provides dog grooming and doggie day care. Bethany has done research about the role dogs play in today's culture, particularly for those people who do not have children. She knows that some of these people represent a target that is urban, professional, and travels frequently. Bethany's business is likely to have a _____ and she will probably refer to the dog owners as ___.

• A)high level of tangibility; customers
• B)high level of inseparability; customers
• C)high level of customer contact; clients
• D)low level of perishability; customers
• E)low level of intangibility; clients

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Definitions:

Warranty Expense

Costs that a company incurs to repair, replace, or compensate for faulty products during the warranty period.

Book Income

The income of a business as reported in its financial statements, following the principles of accounting.

Deferred Tax Liability

A tax obligation that arises from temporary differences between accounting and tax calculations, to be paid in the future.

Unearned Revenue

This is income received by a business for goods or services yet to be delivered or performed. It's considered a liability until the product or service is delivered.