Question

Identify a difference between goods and services. Select one:

a. Customers directly participate in goods-producing activities, whereas customers do not participate in service-providing activities.
b. Goods can be stored as physical inventory, whereas services cannot be stored as physical inventory.
c. Goods-producing firms rely solely on soft technology, whereas service-providing firms rely solely on hard technology.
d. The demand for goods cannot be predicted, whereas the demand for services can be easily predicted.

Answer 1

The correct answer is option b.

Step-by-step explanation:

Goods are physical or tangible objects but services are intangible and the act of performing work for someone. Goods are produced but services are performed. Transfer of ownership is involved in the case of goods, but this is not the case with services. Goods can be separated from sellers, unlike services which cannot be separated from the provider.

Since goods are physical and tangible they can be produced and stored as inventory. Services are intangible and non-physical so they cannot be stored as inventory.