Asked by Emily Rulewicz on May 21, 2024
Verified
Service businesses provide services for income, while a merchandising business sells merchandise.
Service Businesses
Companies that earn revenue primarily through providing intangible products, such as services or expertise, rather than selling physical goods.
Merchandising Business
A type of business that purchases products from other businesses and sells them to customers.
- Differentiate between the operational processes and financial reporting practices of service versus retail businesses.
Verified Answer
VR
Veronica RedwayMay 22, 2024
Final Answer :
True
Explanation :
Service businesses offer services like insurance, banking, legal advice, consulting, etc. in exchange for income whereas a merchandising business focuses on the sale of tangible goods or merchandise like clothes, electronics, food, etc.
Learning Objectives
- Differentiate between the operational processes and financial reporting practices of service versus retail businesses.
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