Which of the Following Is a Characteristic of a Service

question 5

Multiple Choice

Which of the following is a characteristic of a service company?

• A) It transforms raw materials into finished goods.
• B) It makes a product.
• C) It does not have tangible products intended for sale.
• D) It has a single category of inventory.

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Definitions:

Debt-Equity Ratio

A metric indicating the balance between shareholders' equity and debt in financing a company's assets.

Capital Spending

Expenditures by a business for acquiring or upgrading physical assets such as property, industrial buildings, or equipment.

Earnings Estimate

A projection or forecast of a company's future earnings per share, often provided by analysts.

Dividend Income

Income received from owning shares in a company, usually distributed from the company's profits.