The 25^th Hour Inc

question 63

Multiple Choice

The 25^th Hour Inc.is a business that runs errands for people.Its employees have been called in to care for a toddler when her mother went into labor,to buy groceries for a mother who wanted to attend her child's soccer game and to decorate for parties.If any customer is not completely happy with the service The 25^th Hour provides,its employees are told to immediately refund the customer's money (less any expenses) as soon as the complaint is made known.This sort of service recovery policy helps to narrow provider _____ of the gaps model of service quality.

• A) Gap 1
• B) Gap 2
• C) Gap 3
• D) Gap 4

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Definitions:

ROCE

Return on Capital Employed, a financial ratio that measures a company's profitability and the efficiency with which its capital is used.

Capital Structure

refers to the mix of debt and equity financing that a company uses to fund its operations and growth.

Financial Leverage

Utilizing borrowed money to amplify the potential gains from an investment, but also elevating the risk of incurring losses.

DFL

Degree of Financial Leverage; a ratio that measures the sensitivity of a company's earnings per share to fluctuations in its operating income, based on its capital structure.