A health club differs from manufacturing firms in that it produces a service rather than products. Consider Local Video, Inc., which manufactures video games that are primarily sold to the students at Texas College.
Is this manufacturing firm more exposed than CHC to the overall economic conditions in the United States?
Now consider Tex, Inc., which produces video games for adults throughout the United States. Is Tex, Inc., more exposed to the overall economic conditions in the United States than CHC is? Explain.