What type of business might focus on providing services rather than selling goods?

Prepare for the Funeral Service Education (FSE) National Board Exam with comprehensive resources. Access multiple choice questions, flashcards, and detailed explanations to boost your confidence and improve your knowledge. Ace the exam seamlessly!

A service-based business primarily focuses on providing services to customers rather than selling physical goods. This type of business capitalizes on skills, expertise, or labor to fulfill customer needs. Examples include consulting firms, salons, and in the context of funeral services, funeral homes that offer arrangement services, memorial planning, and grief counseling.

In contrast, merchandising, manufacturing, and retail businesses primarily involve the sale of tangible products. Merchandising businesses buy products for resale, manufacturing businesses produce goods, and retail businesses sell those goods directly to consumers. Therefore, the distinctive characteristic of a service-based business is its emphasis on delivering experiences or assistance rather than trading in physical items.

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