The major difference between service companies and retail or manufacturing companies is that retailers and manufacturers must account for Inventory. Thus the correct option is B.
What are Service companies?
Service companies provide Services which are referred to as a type of goods that is offered to someone in terms of facilities like the one received in a restaurant or shopping mall. It is a type of commodity or product that is intangible in nature, one can only feel it.
Manufacturers and producers are required to account for a number of factors that service providers are not, and this is the main difference between services. The concept of inventory does not apply to intangible services.
Therefore, option B is appropriate.
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