O Level Accounting (7707)•7707/11/M/J/24

Explanation
Service vs. Retail Businesses
Steps:
- Define a service business as one providing intangible expertise or labor, not selling physical goods.
- Review options: A provides financial advice; B fixes hardware; C sells flowers; D styles hair.
- Identify C as retail, focused on product sales rather than services.
- Confirm others deliver personal or technical services without primary product sales.
Why C is correct:
- A flower shop is a retail business selling tangible goods (flowers), per standard business classification distinguishing services from merchandise sales.
Why the others are wrong:
- A: Accountant's practice offers intangible financial consulting services.
- B: Computer repair shop provides hardware repair and maintenance services.
- D: Hairdressing salon delivers personal grooming services.
Final answer: C
Topic: The purpose of accounting
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