Organizations that combine raw materials, machinery, and labor to produce goods are called
A) manufacturing businesses.
B) service businesses.
C) merchandisers.
D) market intermediaries.
E) processors.

Question

Quizplus · Accepted Answer

Manufacturing businesses combine raw materials, machinery, and labor to produce goods, whereas service businesses provide intangible services such as consulting, banking or healthcare. Merchandisers buy finished goods and resell them for a profit, while market intermediaries help facilitate exchanges between buyers and sellers. Processors are businesses that transform one product into another, such as wheat into flour.

Organizations That Combine Raw Materials, Machinery, and Labor to Produce