Final answer:
Service companies do not typically maintain a large inventory because they offer non-tangible services rather than products, so the statement is false.
Step-by-step explanation:
Do service companies must carry a large amount of inventory to meet consumer demand? The correct answer is 2) False. Service companies, in contrast to manufacturing or retail businesses, do not typically deal with physical goods. Therefore, they usually do not maintain large amounts of inventory. Service-based businesses focus on providing expertise, convenience, and other non-tangible benefits rather than products. In the broader economic context, when consumers demand more goods than what is available, it leads to higher prices, which in turn can incentivize more suppliers to enter the market. However, this principle primarily applies to goods rather than services.