According to the Service Continuum, Which of the Following Offerings

question 49

Multiple Choice

According to the service continuum, which of the following offerings has the lowest level of intangibility?

• A)designer dress
• B)law practice
• C)tutoring service
• D)cat food
• E)pepper

Understand the legal distinctions between different types of investors.

Differentiate between the finance and accounting perspectives within a business.

Understand the concept and advantages of corporate formation, including limited liability and tax implications.

Grasp the historical evolution and the roles within the field of finance.

---

Definitions:

Target Capital Structure

The mix of debt, equity, and other securities that a company aims to hold to finance its operations and growth.

Capital Budget

The amount of money allocated for significant long-term investments or projects of a business.

Dividend Payment

A disbursement of a portion of a company's earnings decided by the board of directors to its shareholders.

Residual Dividend Policy

A strategy where dividends are paid to shareholders from the leftover or residual earnings after all operational and expansion costs are covered.