In: Accounting
Classify the following organisations as professional service firms, mass service entities or service shops. In each case, explain the reasons for your classification.
Scenario | Classification | Explanaion for such Classification |
One-stop shop providing public assistance with a range of government services, including the issue or renewal of drivers’ licences, business licences and senior citizen concession cards | Mass Service Entities | AS the services offerred is to public in respect of all types of government services, driving licese and other types of subisidised services they don’t need professional intelligence. These are started to serve the public at large, not like providing any kind of repring service shops. |
Bus and coach company providing daily intercity express services. | Mass Service Entities | The provision of service is public at large to all types of working , non working to all class of people, but dealing in intercity bus service, hence meeting the need of the public at large interested in intercity service. |
Dental practice staffed by three dentists who specialise in orthodontic work. | Professional Service Firms | Here, the services are being offerred by professional and specialised in tooth problem. Hence the services required specialisation and offerred by professional only. Hence Professional Service firm. |
Bicycle repair workshop. | Servcie Shops | These are small shops which require the person to have little knowledge of bicycle and its repair and maintenance part. Opened in every localities in every society and exclusively engaged in repairing services only. |
Financial planning practice. | Professional Service Firms | Financial Practice means providing advisory services in financial requirements like Investment, Taxation, Capital Budegting to various corporates, individual and Self employed and salaried personnel. However in order to provision of above services require Professional Degree to start to advise in such exclusive services. Henc esuch services offerred are in terms of professional services becasue, it require the knowledge of various laws regulations and statutory requirement even while dealing at single factors etc. |
Airline company | Mass Service Entities | Categorised in Mass entities because providing airline transporation services to the public at large those are able to meet the pricing of the same. The business is gradually depend upon the public at large. |