_____ hold inventories of raw materials, components and parts, work in process, and finished goods.
A) Manufacturing firms
B) Retail firms
C) Service firms
D) Consulting firms

Question

Quizplus · Accepted Answer

Manufacturing firms are responsible for producing tangible goods, and therefore they must hold inventories of raw materials, components, work in process, and finished goods. Retail firms may hold inventories of finished goods, but typically do not hold inventories of raw materials or work in process. Service firms do not typically hold inventories at all, as they provide intangible services rather than tangible goods. Consulting firms also do not typically hold inventories as they provide advice and guidance rather than physical products.

_____ Hold Inventories of Raw Materials, Components and Parts, Work