It Is Difficult to Maintain Consistent Quality in Services Because

question 180

Multiple Choice

It is difficult to maintain consistent quality in services because

• A) services are nonperishable.
• B) as opposed to products, services are tangible in nature.
• C) the service provider deals directly with the customer and often has to interpret each customer's needs.
• D) variability is reduced as more humans are involved in delivery.
• E) it requires minimum human interaction.

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Definitions:

Common Stock

An equity security that denotes ownership within a corporation and grants the owner voting rights on company issues as well as eligibility to receive dividends.

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily match the market value.

Treasury Stock

Shares of a company's own stock that it has reacquired but has not retired, which can be resold or used for other corporate purposes.

Paid-in Capital

The amount of money that shareholders have invested in the company through the purchase of its stock, over and above the par value of the shares.