Multiple Choice
Each of the following are examples of a merchandising company except:
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4. Merchandising Operations
Service Company vs. Merchandising Company
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A firm fills its customer's orders from finished goods inventory. It is a:
A
Service company
B
Merchandising company
C
Nonprofit organization
D
Manufacturing company
Verified step by step guidance1
Understand the definitions of the types of companies listed in the problem: Service company, Merchandising company, Nonprofit organization, and Manufacturing company.
A Service company provides intangible services rather than physical goods. Examples include consulting firms, law firms, and accounting firms.
A Merchandising company purchases finished goods and resells them to customers without altering the goods. Examples include retail stores and wholesalers.
A Manufacturing company produces goods by converting raw materials into finished products through a production process. Examples include factories and production plants.
Analyze the firm's activity described in the problem: It fills customer orders from finished goods inventory. This matches the definition of a Merchandising company, as it deals with finished goods rather than producing them or providing services.
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