Edumarz

Define services and goods.

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By Harshvardhan, the Subject Matter Expert at Edumarz

Solution: A good is a physical product capable of being delivered to a purchaser and involves the transfer of ownership from the seller to the customer. Goods are also generally used to refer to commodities or items of all types, except services, involved in trade or commerce. Services are those separately identifiable, essentially intangible activities that provide the satisfaction of wants, and are not necessarily linked to the sale of a product or another service.

services are essentially intangibles. Their purchase does not result in the ownership of anything physical. For example, you can only seek advice from the doctor, you cannot purchase him. Services are all those economic activities that are intangible and imply an interaction to be realised between the service provider and the consumer. There is a difference between purchasing and eating, purchasing and watching and purchasing and leasing. What is common in all of them is that one is purchasing an item and the other is experiencing a service. But there is definitely a difference between the item or good and the service performed.

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