Which of the following statements about supplies and business service…

Which of the following statements about supplies and business services is correct?

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → Supplies and business services include operating supplies like writing paper.

Option (1) Supplies and business services include raw materials like cotton and iron ore. — False. Cotton and iron ore are raw materials, a kind of materials and parts.

Option (2) Supplies and business services include operating supplies like writing paper. — True. Supplies and business services include operating supplies such as lubricant, computer stationery and writing paper, along with maintenance and repair items.

Option (3) Supplies and business services include component parts like tyres and batteries. — False. Tyres and batteries are component parts, which come under materials and parts.

Option (4) Supplies and business services are long lasting goods that help in managing the finished product. — False. Supplies and business services are short lasting goods and services that help in developing or managing the finished product.

NCERT (2026-27 Edition): “Classification The industrial goods are classified into the following major categories:
(i) Materials and Parts: These include goods that enter the manufacture’s products completely. Such goods are of two types: (a) raw material: including farm products like cotton, sugar cane, oil seed and natural products such as minerals (say crude petroleum, iron ore), fish and lumber; and (b) manufactured material and parts. These are again of two types – component materials like glass, iron, plastic and component parts such as tyre, electric bulb, steering, and battery.
(ii) Capital Items: These are such goods that are used in the production of finished goods. These include: (a) installations like elevators, mainframe Computers, and (b) equipments like Hand Tools, Personal Computer, Fax Machines, etc.
(iii) Supplies and Business Services: These are short lasting goods and services that facilitate developing or managing the finished product. These include: (a) maintenance and repair items like Paint, Nails, etc., and (b) operating supplies like Lubricant, Computer Stationary, Writing Paper, etc.”