Final answer:
Manufacturing companies carry raw materials, work in progress, and finished goods inventory as they are involved in all stages of producing goods. Inventories in manufacturing reflect unsold goods and are an economic indicator. The correct answer is b. Manufacturing.
Step-by-step explanation:
The type of company that would carry raw materials, work in progress, and finished goods inventory is a manufacturing company. These companies are involved in the production of goods, which include the acquisition of raw materials, the transformation of these materials into products (work in progress), and the storage of completed items ready for distribution or sale (finished goods).
By contrast, merchandising companies typically only hold finished goods inventory since they purchase products for resale, and service companies usually do not carry any inventory as they offer intangible services rather than tangible products.
In the context of economics, firms in the goods market can include manufacturing companies, and inventories refer to the goods that a business has produced but not yet sold, which are stored in warehouses or on shelves. The level of inventories can be an indicator of economic activity, as it tends to fluctuate based on supply and demand circumstances. Therefore, for the question presented, the correct answer is b. Manufacturing.