Differentiate between service business and merchandising business with example.
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Answer:
Service Business Defined
A service business provides services to its customers. Nail salons, accountants, law firms and cleaning services are examples of service businesses. Some service businesses also sell products – for example, a nail salon sells nail polish – but for the most part, the bulk of the business income comes from providing the service. Specialized expenses for a service business are mainly overhead focused, with labor often being the largest expenditure. Second would typically be the materials required to supply the service.
What Is a Merchandising Business?
A merchandising business sells goods, also known as merchandise. Good examples of merchandising businesses include retail clothing, grocery stores and bookstores. Some businesses produce the goods they sell, while other merchandise businesses buy and sell goods they've purchased wholesale. Or it could be a combination of the two.