Forms of Business Organization - Activities Flashcards
1
Q
Services?
A
provides skills/ expertise
2
Q
Merchandising?
A
Buy and sell
3
Q
Manufacturing?
A
uses raw materials to create a finished product
4
Q
Advantages of Sevice
A
- no inventory, no warehouse
- less costly
- skilled experts/specialists
- customized service
5
Q
Advantages of Merchandising
A
- more opportunities to attract customers
- flexible
6
Q
Advantages of Manufacturing
A
- likely continuous demand
- pride of making own product
7
Q
Disadvantages of Service
A
- harder to value (quality)
- difficult to assess skill quality
- less demand during economic crisis
8
Q
Disadvantages of Merchandising
A
- profit dependant on prices of suppliers
- inventory control
- merchandise may be perishable
9
Q
Disadvantages of Manufacturing
A
- more labor, capital intensive
- cost of product depend on raw materials
