The Intangibility Aspect of a Service Means That

question 41

Multiple Choice

The intangibility aspect of a service means that

• A) there is a lack of perceived quality compared to a tangible good.
• B) unused capacity cannot be stockpiled or inventoried for later use.
• C) consumers may have a problem evaluating service offerings.
• D) services are not produced at the same time they are consumed.
• E) services are not labor-intensive.

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Definitions:

Futures Contract

A legally binding contract to acquire or dispose of a specific item at an agreed-upon price at a future date.

Contract Size

Refers to the deliverable quantity of commodities or financial instruments like futures and options contracts specified in the contract terms.

Acceptable Grade

A term that might refer to a minimum satisfactory academic or performance level, but could require more context to define precisely.

Settlement Price

The official price at the close of a trading session on a futures exchange, used for determining margin requirements and the next day's price limits.