Measuring the Global Importance of Services Is Difficult for All

question 13

Multiple Choice

Measuring the global importance of services is difficult for all of the following reasons EXCEPT

• A)Many firms operating in a global context overstate their manufacturing resources and understate their service activity resources.
• B)As more and more women enter the work force,the magnitude of the real growth in the domestic service sector becomes increasingly overstated.
• C)Organizations often combine their services data with nonservices data making it difficult to accurately estimate each area's relative contribution to the overall economy.
• D)All of these are reasons why it is difficult to accurately measure the global importance of the service sector.
• E)None of these are reasons why it is difficult to accurately measure the global importance of the service sector.

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Definitions:

Capital Lease

A long-term lease agreement that allows the lessee to effectively own an asset without having it on their balance sheet.

Lease Transfers Ownership

A lease agreement that includes a provision allowing the lessee to acquire ownership of the asset at the end of the lease term.

NPV

NPV (Net Present Value) is a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.

Cash Inflow

The total amount of money being transferred into a company, usually from operations, investments, or financing activities.