Help with business question

label Business & Finance
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

There are two main types of deliverables: products and services. List one advantage and disadvantage of each. Which one do you feel is the most risky to pursue as a business endeavor? Why?

Apr 12th, 2015

There are advantages and advantages to each type of endeavor. 

Products:  A popular product is likely to sell well, and can generate a handsome profit for the entrepreneur; however, rapid changes in consumer tastes (as in the electronics industry) can very quickly turn a profitable business into an unprofitable one. 

Services: In the area of services, a well-chosen type of service (i.e., medical or personal-care related) can also be very profitable; a disadvantage is that such service industries are highly competitive, and tend to experience a high rate of employee turnover.

Having worked in both fields, I feel that services would be a riskier endeavor because of the lack of qualified persons who are willing to work for low wages, few or no benefits, and irregular hours.  Further, many service providers derive much of their income from government contracts, which can be changed or cancelled with little or no notice.  Products are definitely less risky than services.


I hope this is helpful. 

Apr 13th, 2015

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
Apr 12th, 2015
...
Apr 12th, 2015
Jun 24th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer