Concepts and explanation
Services are intangible, often inseparable from delivery, variable and generally cannot be stored. Banks accept deposits, lend and transfer funds. Insurance pools specified risks under a contract; principles such as insurable interest, utmost good faith, indemnity, contribution and subrogation apply where relevant. Transport moves goods; warehousing bridges time and location gaps; communication coordinates transactions.
Business example
An online clothing seller uses a bank payment gateway, a courier and a warehouse. Each service addresses a different operational need and risk.
Case-based practice
- A shipment is lost in transit and the seller holds a valid insurance policy. Explain which business services are involved and which insurance principles may determine the claim.
- Write a short answer that names the relevant concept and applies it to the facts.
Quick revision
Revision cue: Define the term, distinguish it from a related concept and support the answer with a relevant example.