FABM 1 COT EVALUATION

What is the primary characteristic of a service business?

• It sells physical products to customers.

• It offers intangible services to customers

• It manufactures goods in a factory.
  
  

• It only operates online.

Which of the following is an example of a service business?

• A bakery that sells bread
  
  

• A car dealership that sells vehicles

• A hospital providing medical care
  
  

• A clothing store selling clothes

In a service business, which of the following is true about customer interaction?

• Customers never interact with service providers.

• Customers directly participate in the service process.
  
  

• Services are delivered without any input from customers.

• Services are always provided in a factory setting.

Why is quality control challenging for a service business compared to a product-based business?

• Services are always standardized.
  
  

• Services are intangible and cannot be measured in the same way as physical products.
  
  

• Services are produced in large quantities.
  
  

• Services can be stored for later use.

Which of the following is a key difference between a service business and a product business?

• A service business provides tangible products.
  
  

• A product business requires customer participation

• A service business cannot be touched or stored

• A service business sells physical items to customers