Question

State whether true or false.
a. A service business manufactures products for sale.
b. A hotel is a merchandising business.
c. The government lays down laws from time to time regarding HUF businesses.​

Answer 1

Answer:

All are true except last

Answer 2

ANSWER

ALL ARE FALSE

Explanation:

FOR THE 1ST ONE :

WE KNOW THAT A SERVICE BUSINESS IS A TRANSACTION IN WHICH THERE IS NO TRANSFER OF PHYSICAL GOODS FROM SELLER TO THE BUYER. THE PRODUCTS IN SERVICE ARE INTANGIBLE IN NATURE AS THEY HAVE NO PHYSICAL FORM THAT CAN BE TOUCHED OR SEEN. THEREFORE IT IS FALSE .

FOR THE 2ND ONE :

HOTEL IS A COMBINATION OF SERVICE, MERCHANDISING AND MANUFACTURING BUSINESSES SINCE IT PROVIDES LODGING TO PEOPLE ( SERVICE), IT BUYS THINGS LIKE BOTTLED MINERAL WATER FROM WHOLESALERS AND SELLS THEM TO ITS CUSTOMERS AT RETAIL PRICES ( MERCHANDISER) , IT BUYS THE RAW MATERIALS AND PREPARES FOOD ITEMS IN ITS KITCHEN FOR SALE TO ITS CUSTOMERS ( MANUFACTURER) . THERFORE IT IS A HYBRID BUSINESS. THAT'S WHY IT IS FALSE

FOR THE 3RD ONE :

IT IS GIVEN IN THE BOOK THAT IT IS IMPLIED IN THE NAME, GOVERNED BY HINDU LAW, ONLY MEMBERS OF THE FAMILY CAN OWN AND MANAGE THE BUSINESS. GOVERNMENT DOESN'T LAY DOWN THE LAWS FROM TIME TO TIME. THEREFORE THIS IS ALSO FALSE.