Does a service company earns net income by buying and selling merchandise?

A service company typically does not earn net income by buying and selling merchandise, as its primary business model revolves around providing services rather than selling physical products. Instead, its revenue is generated from fees for services rendered. However, if a service company engages in selling merchandise as a secondary activity, the profits from those sales could contribute to its net income. Overall, the core income for a service company comes from its service offerings.