Business Services – Goods and Services – The Difference

A business is a type of organization that is in business to make money by producing and selling goods or services. A business can be a single person (sole proprietorship) or a corporation. A business is a legally recognized entity that has a legal name and is liable to its owner or employees for the financial obligations of the business.

Goods and Services: The Difference

Businesses often produce both physical goods and services that provide value to their customers. For example, a restaurant may produce a physical good in the form of food and also offer a service such as table setting, ambience and other aspects of a dining experience.

Similarly, utilities provide a physical commodity that consumers purchase, but also offer a service in the form of electricity or water. In most cases, these products fall somewhere in the middle.

For example, a company that manufactures and sells telecommunications equipment can also offer a service, such as providing the telecommunications lines needed by businesses. These are both services that have a value that is intangible but provide a benefit to customers and are worth paying for.

Another kind of service is software that enhances features and security of computers and other technological devices. This includes anti-virus protection and updating applications that help people work more efficiently and effectively.

A business is considered to be a successful entity when its inflow exceeds outflow, so it is important that the company have an adequate funding source and keep track of how much it invests and how many returns it receives. This way, it can monitor its performance and improve itself accordingly.

When a company doesn’t have the necessary expertise or capabilities to handle certain tasks, it turns to business services to perform those duties. In this way, the worth of the business services is intangible and they enable a company to focus on its strategic-based internal goals while outsourcing some of those labor that doesn’t fall within its capability.