Question
Explain 'utility creation' as a characteristic of business.
✓
Answer
Business activities create utility in the process of its activities, as given below:
- Form utility: When the raw material is converted into finished goods, its form is changed, thus it creates a form utility.
- Place utility: If the goods are not transported to the place of consumption, there is no use. Thus, business creates a place utility.
- Time utility: Warehousing provides the time utility as it fills the gap of demand and supply.
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