One Way to Make a Service More Tangible Is to Have

question 58

Multiple Choice

One way to make a service more tangible is to have customers ______.

• A) Read about it on a web site
• B) Experience the service through a trial period of time
• C) Receive a brochure that highlights the advantages and disadvantages of the service
• D) Google the service and see who provides the services in their area
• E) None of the above

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Definitions:

Internal Rate of Return

A metric used in financial analysis to estimate the profitability of potential investments, calculated as the rate of return that makes the net present value of all cash flows from a particular project equal to zero.

Initial Investment

The amount of money used to start a project, purchase an asset, or initiate operations.

Cash Inflows

Money or funds entering a business from various sources like sales, investments, or financing.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of shareholder wealth maximization, such as purchasing equipment or acquiring another business.