U3 3C characteristics of manufacturing / service business Flashcards
1
Q
Characteristics of a business
A
tangibility
production / consumption pattern
storability
production method
degree of customer contact
production technique
2
Q
characteristics of manufacturing business goods
A
- tangible (can be seen or touched)
- production and consumption
occur separately - easily stored
- standardized and mass produced
- minimal customer contact
- capital intensive production
3
Q
characteristics of service business services
A
- intangible (cannot be seen or touched)
- production and consumption are simultaneous
- difficult to store
- often customised
- high degree of customer contact
- labor intensive production
4
Q
define standardized goods
A
goods that are produced consistently and are virtually identical to another
5
Q
define capital intensive
A
when business use high degree of machinery and equipment during production proccess
6
Q
define labor intensive
A
when business use high degree of employee involvement during production process
