Intangibility Element of a Service Refers to the Fact That

question 134

Multiple Choice

intangibility element of a service refers to the fact that it

• A) has value that can only be determined by using subjective criteria.
• B) can't be held, seen, or touched before the purchase decision.
• C) cannot be described, only experienced.
• D) can maintain or accumulate inventory.
• E) can be objectively evaluated.

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Definitions:

Opportunity Cost of Capital

The return foregone by investing in a project instead of in comparable financial assets with similar risk.

Net Present Value

Net Present Value (NPV) is a financial metric that calculates the present value of all future cash flows (positive and negative) expected from an investment, adjusted for time and interest.

Profits

The financial gain achieved when the revenues from business activities exceed the expenses, costs, and taxes involved in sustaining the activity.

Nominal Interest Rate

The rate of interest before adjustments for inflation, representing the surface rate charged on loans or earned on investments.