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SAI INTERNATIONAL SCHOOL
CLASSS XI
SUBJECT: BUSINESS STUDIES
CHAPTER -4, Business Services
CH 3 Lesson Notes 16 Meaning of service, Types of services, nature of
services, goods vs. services, banking, types of banking
BUSINESS SERVICES
A good is a physical product capable of being delivered to a purchaser and
involves the transfer of ownership from seller to customer. Goods are also
generally used to refer to commodities or items of all types, except services,
involved in trade or commerce.
NATURE OF SERVICES
There are five basic features of services. These features also distinguish them from
goods and are known as the five is of services. These are discussed as below:
(i) Intangibility: Services are intangible, i.e., they cannot be touched. They
are experiential in nature. One cannot taste a doctor’s treatment, or touch
entertainment. One can only experience it.
(ii) Inconsistency: The second important characteristic of services is
inconsistency. Since there is no standard tangible product, services have
to be performed exclusively each time. Different customers have
different demands and expectations. Service providers need to have an
