Explain personal services and business services.
What will be an ideal response?
Personal services include activities such as financial services, transportation, health and beauty, lodging, advising and counseling, amusement, plumbing, maid services, real estate, and insurance.
Business services may include some of these, plus others that are strictly business oriented, such as advertising agencies, market research firms, economic counselors, and certified public accountants (CPAs).
Personal services can be performed by individuals or by automated equipment. Two examples of the latter are automatic car washes and computer time-sharing bureaus. There are many opportunities in service industries because the demand for services is expected to grow faster than for most other types of businesses. Some reasons for increased spending on services include rising discretionary income, services as status symbols, more women working outside the home (and earning more), and a shorter workweek and more leisure time.
On the other hand, service businesses have severe competition, not only from other firms, but also from potential customers who perform the services themselves and from manufacturers of do-it-yourself products.
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