Scenario 7-2. Jack loves computers and has since he was a child. He spends every waking hour programming, rebuilding, and tinkering with any computer he can find. He has just graduated with a bachelor's degree in computer science and is trying to decide what to do with the rest of his life. The computer stores in the town in which he lives are not places he would want to work. They are known for slow service, lack of quality computers, and inability to service the computers they sell. He is contemplating opening his own small business; however, lack of funds is his major problem. To deal with his lack of funds, initially he would concentrate on repair and service of existing computer systems and then expand into selling new computers as his capital base grew. He knows he could do a better job with customer service than what his competitors currently are doing.
-In Scenario 7-2, Jack's computer service/repair shop would be which of the following types of business?

Question

Quizplus · Accepted Answer

Jack's business plan focuses on repair and service of existing computer systems, which typically requires skilled labor rather than large capital investments in equipment or inventory, making it labor intensive.