Which of the following is an example of a company providing consumers with services?

• A. A farm selling fresh vegetables
• B. A bookstore selling novels
• C. A factory manufacturing cars
• D. A hospital offering medical care

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the difference between goods and services. Goods are tangible products that can be touched and stored, such as vegetables, novels, and cars. Services are intangible activities or benefits provided to consumers, such as medical care, education, or haircuts.
2. Step 2: Analyze each option to determine whether it represents a good or a service. For example, a farm selling fresh vegetables provides a tangible product (goods).
3. Step 3: Similarly, a bookstore selling novels and a factory manufacturing cars both provide tangible products, which are goods.
4. Step 4: Identify the option that involves providing an intangible benefit or activity. A hospital offering medical care provides a service because it involves delivering healthcare, which is an intangible activity benefiting the consumer.
5. Step 5: Conclude that the correct example of a company providing consumers with services is the hospital offering medical care, as it fits the definition of a service rather than a good.