Answer to Question #244197 in Accounting for nicole

Question

 Differentiate a service, merchandising, and manufacturing entity by providing 2 examples

or each type of business.

Answer 1

In the same way that a retailing company uses labor and other inputs to change raw materials into completed products, a manufacturing company uses labor and other inputs to transform raw materials into finished products and then sells them. A service firm, on the other hand, does not manufacture or sell things and instead focuses on providing services.