Which statement correctly defines a product in business terms?

• A. A product is a service that is offered for free.
• B. A product is only a tangible good.
• C. A product is the goods or services created by a business to sell to customers.
• D. A product is the price charged to customers.

Answer: (C)

A product in business terms is the goods or services a company creates to sell to customers. It can be a physical item or an intangible offering like a service or digital product, or a combination that provides a complete value proposition. The product includes the features and benefits that meet customer needs and differentiate the offering in the market, not just the price or whether something is given away for free. Understanding this helps show why the statement that describes the product as the goods or services created by a business to sell to customers is the most accurate.