The Most Fundamental Difference Between a Product and a Service

question 30

Multiple Choice

The most fundamental difference between a product and a service is that a service is:

• A)personalized.
• B)intangible.
• C)consistent.
• D)durable.
• E)separable.

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Definitions:

Total Cash Flows

The aggregate sum of cash entering and leaving a corporation, which plays a significant role in determining its financial fluidity.

Income Taxes

Taxes levied on both earned income (wages, salaries) and unearned income (dividends, interest), imposed by government authorities.

Sunk Cost

A cost that has already been incurred and cannot be recovered, and should not affect future investment or spending decisions.

Capital Budgeting

The process used by businesses to evaluate and prioritize investments in long-term assets and projects based on their potential returns.