Future Business Leaders of America (FBLA) Accounting Practice Test

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Prepare for the FBLA Accounting Test with practice quizzes and comprehensive questions. Each question is designed to help deepen your understanding and enhance your readiness for the exam. Are you ready to excel?

Practice this question and more.

What type of business is defined as one that performs an activity for a fee?

Retail Business
Manufacturing Business
Service Business
Merchandising Business

The correct answer is: Service Business

The correct answer is a service business because it refers to organizations that provide intangible products or services to customers in exchange for a fee. Unlike businesses that sell physical goods, service businesses focus on delivering value through activities, expertise, or experiences that meet customer needs. Examples include consulting firms, law offices, repair shops, and cleaning services. Service businesses play a critical role in the economy by catering to various customer demands, often relying on personal interactions and expertise rather than inventory. They generate revenue by charging clients for the work performed, which is the essence of performing activities for a fee. This distinction emphasizes the fundamental operational model of a service business compared to other types that focus predominantly on selling tangible products or goods.