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What major asset will normally be insignificant for service enterprises and relatively substantial for retailers, wholesalers,...

What major asset will normally be insignificant for service enterprises and relatively substantial for retailers, wholesalers, and manufacturers? Briefly discuss.

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Answer #1

A major asset which makes difference between service enterprises and retailers, wholesalers, manufacturers is Inventory.

As we know that retailers, wholesalers and manufacturers has to maintain substantial level of innventory to run its busieness smoothly but inventory is not necessary for service enterprises because services are not stored as inventory. And we know that inventory is a current asset that is why it is true that inventory is insignificant for service enterprises and relatively substantial for retailers, wholesalers, and manufacturers.

For meeting the demands of the customers and for meeting emergencies retailers, wholesalers, and manufacturers have to kept sufficient inventory everytime but it is not done by the service enterprises.

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