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Question
Assertion (A): Services are perishable in nature.
Reasoning (R): Services cannot be stored for future use, unlike physical products.
Options
A is true but R is false.
A is false but R is true.
Both A and R are true and R explains A.
Both A and R are true but R does not explain A.
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Solution
Both A and R are true and R explains A.
Explanation:
The assertion is true because services are perishable economic activities that exist only in the moment of execution and cannot be saved. The reasoning accurately explains this principle because, unlike physical goods that can be manufactured and stored in a warehouse for future delivery, an unsold service, such as an empty airline seat, an unbooked hotel room, or an idle salon hour, is permanently lost if not consumed immediately.
