Which of the following is an example of inherent characteristics of a service?

The selection of functionality and performance as the example of inherent characteristics of a service is accurate because these aspects are fundamental to what defines a service and how it meets stakeholder needs.

Functionality refers to the specific capabilities and features that a service offers to fulfill the requirements of users. This characteristic is inherent because it directly relates to the core purpose of the service and what it is meant to achieve. Performance, on the other hand, relates to how well a service delivers its functionality, including efficiency, speed, reliability, and overall effectiveness. Both functionality and performance are intrinsic to any service, as they determine the value and quality that stakeholders experience when using the service.

In contrast, the other options represent factors that may influence or affect the delivery of services but are not intrinsic characteristics of the services themselves. Price and compliance, for example, are external factors that may be considered in the context of how services are marketed and governed, respectively. Flexibility and reporting emphasize operational aspects that reflect how adaptable a service is and how it communicates its effectiveness, rather than defining what the service fundamentally is. Social responsibility and transparency, while increasingly important in today's business environment, reflect organizational values and ethics that may enhance services but do not inherently define the service characteristics themselves.