Explain 'utility creation' as a characteristic of business. - Vidyadip

Question

Explain 'utility creation' as a characteristic of business.

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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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