Service Firms Produce Intangible Products That Are Not Separable from the Customer

question 74

True/False

Service firms produce intangible products that are not separable from the customer.

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Definitions:

Sale of Goods

Refers to the transaction of purchasing and selling tangible personal property.

Risk

The potential for losing something of value, either physically, financially, or emotionally, due to a particular action or event.

C.I.F. Contract

Stands for "Cost, Insurance, and Freight," a type of international shipping agreement where the seller pays for the cost of goods, insurance, and freight to a specified destination.

F.O.B. Contract

A shipping agreement where "Free On Board" determines that the seller delivers goods on board a vessel designated by the buyer, transferring the risk from the seller to the buyer once the goods are onboard.