O Level Accounting (7707)•7707/12/O/N/20

Explanation
Service businesses provide intangible services, not physical goods
Steps:
- Define a service business as one that sells expertise, labor, or intangible offerings rather than physical products.
- Evaluate each option: check if the primary activity involves delivering services or selling goods.
- Identify supermarkets as retailers focused on selling tangible products like food and household items.
- Confirm the rest involve direct service provision to customers.
Why C is correct:
- A supermarket is a retail business that primarily sells physical goods, not services, per standard business classification where services are intangible and goods are tangible.
Why the others are wrong:
- A: Hairdressing salon provides personal grooming services.
- B: Accountant's practice offers professional financial advice and preparation services.
- D: Computer repair shop delivers technical repair and maintenance services.
Final answer: C
Topic: The purpose of accounting
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