Prevailing economic conditions affect mostly businesses that provide physical products, not businesses that provide intangible services.

Question

Quizplus · Accepted Answer

This statement is false. Prevailing economic conditions can also affect businesses that provide intangible services, such as consulting firms, law firms, and advertising agencies. For example, during an economic downturn, companies may cut back on hiring consulting or legal services in order to reduce costs. Additionally, changes in consumer behavior and purchasing power can affect businesses that provide intangible services such as marketing and advertising.

Prevailing Economic Conditions Affect Mostly Businesses That Provide Physical Products