Businesses are often classiﬁed into three broad groups: service companies, manufacturing companies, and merchandising (retail) companies.
(a) Identify each of the following well-known ﬁrms as a Service company (S), a manufacturing company (M), or a merchandising company (R).
(1) General Motors
(3) JPMorgan Chase
(4) Toys ‘‘R’’ Us
(5) Levi Strauss
(b) For the companies listed, identify a key business decision that each ﬁrm’s management likely faces on a recurring basis. What type of data might the accountants or each ﬁrm provide to management to help make the decisions identiﬁed?