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Q.

Service can be classified as:

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a

Tangible

b

Intangible

c

Both (1) and (2)

d

Physical product

answer is B.

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Detailed Solution

Service can be classified as intangible. Services can be distinguished from other goods and products through their intangibility. Products can be seen, tasted, felt, heard, or smelled before they are purchased, while services don't have this feature. Services are inseparable from the production process as they are produced and consumed simultaneously. For example, a lawyer's client cannot predict the outcome of a case before the work is presented in court. This is not the same for physical products, as they are manufactured first and then consumed much later.

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