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Which of the following statements is true regarding non-manufacturing entities?
- a)They process goods before selling.
- b)They sell goods in their original form without processing.
- c)They only provide services, not goods.
- d)They manufacture goods as per customer specifications.
Correct answer is option 'B'. Can you explain this answer?
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Which of the following statements is true regarding non-manufacturing ...
Non-manufacturing entities are involved in the purchase and sale of goods without changing their form or use. They sell goods in their original form, unlike manufacturing entities that process goods before selling.
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Which of the following statements is true regarding non-manufacturing ...
Non-manufacturing entities are businesses that do not engage in the production or manufacturing of goods. Instead, they focus on providing services or selling goods in their original form without any processing. The true statement regarding non-manufacturing entities is option 'B': They sell goods in their original form without processing.
Explanation:
1. Non-manufacturing entities do not engage in processing:
Non-manufacturing entities primarily focus on providing services rather than producing or processing goods. They may offer a wide range of services, such as consulting, banking, insurance, healthcare, education, transportation, etc.
2. Selling goods in their original form:
While these entities may sell goods, they do so without any processing or alteration. Goods are sold as they are received from suppliers or manufacturers. For example, a retail store that sells clothing buys the clothes from manufacturers and sells them to customers without making any changes to the product.
3. Differentiating manufacturing and non-manufacturing entities:
Manufacturing entities, on the other hand, are involved in the production or processing of goods. They take raw materials or components and transform them into finished products through various manufacturing processes. These finished products are then sold to customers.
4. Examples of non-manufacturing entities:
Some examples of non-manufacturing entities include service-based businesses like banks, hospitals, law firms, restaurants, hotels, airlines, etc. These entities primarily provide services or sell goods in their original form without any processing.
In conclusion, the true statement regarding non-manufacturing entities is that they sell goods in their original form without processing. These entities focus on providing services or selling goods without engaging in the manufacturing or processing of goods.
Explanation:
1. Non-manufacturing entities do not engage in processing:
Non-manufacturing entities primarily focus on providing services rather than producing or processing goods. They may offer a wide range of services, such as consulting, banking, insurance, healthcare, education, transportation, etc.
2. Selling goods in their original form:
While these entities may sell goods, they do so without any processing or alteration. Goods are sold as they are received from suppliers or manufacturers. For example, a retail store that sells clothing buys the clothes from manufacturers and sells them to customers without making any changes to the product.
3. Differentiating manufacturing and non-manufacturing entities:
Manufacturing entities, on the other hand, are involved in the production or processing of goods. They take raw materials or components and transform them into finished products through various manufacturing processes. These finished products are then sold to customers.
4. Examples of non-manufacturing entities:
Some examples of non-manufacturing entities include service-based businesses like banks, hospitals, law firms, restaurants, hotels, airlines, etc. These entities primarily provide services or sell goods in their original form without any processing.
In conclusion, the true statement regarding non-manufacturing entities is that they sell goods in their original form without processing. These entities focus on providing services or selling goods without engaging in the manufacturing or processing of goods.
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Which of the following statements is true regarding non-manufacturing entities?a)They process goods before selling.b)They sell goods in their original form without processing.c)They only provide services, not goods.d)They manufacture goods as per customer specifications.Correct answer is option 'B'. Can you explain this answer?
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