Chapter 18, Problem 12DQ

To determine

Manufacturing company:

Manufacturing companies produce their own goods and sell it to the merchandisers and customers.

Merchandising company:

The companies which buy its goods or products from the manufacturers and sold it to customers are known as merchandising company.

Service Company:

The companies which provide intangible services to the customers are called service customers.

To determine:

Explain how business activities and inventories for a manufacturing company, a merchandising company, and a service company differ.