Which of the following is true of the service sector as opposed to manufacturing firms?
A) The output of a service firm is intangible.
B) A service firm considers that all customer needs are the same.
C) Service firms usually maintain inventory registers.
D) Service firms require a physical production site.

Question

Quizplus · Accepted Answer

The output of a service firm is intangible, meaning it cannot be seen, touched or physically measured. This is in contrast to manufacturing firms that produce tangible goods.

Answer: B
 This statement is false. Service firms recognize that each customer has unique needs and therefore aim to provide personalized services.

Answer: C
 Service firms do not usually maintain inventory registers because their output is intangible and cannot be stored for future use.

Answer: D
 Service firms may require physical locations to provide their services, but they do not necessarily need a physical production site like a manufacturing firm. Many service firms can operate remotely or through digital platforms.

Which of the Following Is True of the Service Sector