Manufacturing and Service Businesses

Question 1

Define manufacturing business

Answer 1

A firm that produces tangible items for customers to consume. These goods can be consumed after purchase on a later date.

Question 2

Define servicing business

Answer 2

A firm that produces an intangible item for customers to consume. These services cannot be consumed on a later date after purchase as the business performs the service when it is paid for.

Question 3

Similarities between manufacturing and service businesses

Answer 3

• Use technology

- Aim to reduce costs of production

Question 4

Differences between manufacturing and service businesses

Answer 4

• Manufacturing can store goods

- Manufacturing has very little customer input into the production