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ASPECT                   PRODUCT BUSINESS                          SERVICE BUSINESS
               Production and        Products are produced in factories or  Services    are   delivered   directly  to
               Delivery              workshops and then transported to  customers  at the time  they are needed.
                                     different locations for sale. For example,  For example, a repair technician arrives at
                                     clothes are made in factories and  your home to fix a broken appliance.
                                     shipped to stores.

               Consistency           The quality and quantity of products  The quality and outcome of services can
                                     are generally consistent each time they  vary each  time they  are provided.  For
                                     are produced. For example, every pair  example, a haircut might be different
                                     of shoes of the same brand and model  depending  on  the  stylist’s  skill  or  how
                                     should be similar in quality.           they feel that day.
               Ownership             When  you  buy  a  product,  you  own  it.  When  you  pay  for  a  service,  you  don’t
                                     You can keep it, use it, or give it away.  own  anything physical. You only receive
                                     For example, once you buy a laptop, it  the benefit or experience of the service.
                                     belongs to you.                         For example, after a car wash, you don’t
                                                                             own the cleaning itself; you only get a
                                                                             clean car.
               Return or Refund      Products can often  be returned  or  Services  generally  can’t  be  returned
                                     exchanged  if they  are  faulty  or  not  as  or  refunded  once they  are delivered.
                                     expected. For example, if a shirt doesn’t  However, if the service was unsatisfactory,
                                     fit, you can return it.                 you might discuss a refund or redo. For
                                                                             example, if a service at a restaurant is poor,
                                                                             you can give feedback but not return the
                                                                             meal.


                TYPES OF BUSINESS FOUND IN OUR COMMUNITY

              As an entrepreneur in India, one can own an enterprise in the following framework:
                 Sole Proprietorship: A sole proprietorship is a type of enterprise that is owned, managed and controlled
                 by a single individual. The business and the owner have no separate legal existence. All the profits, as well
                 as losses, belong to the proprietor.

                 Partnership: A partnership firm is formed by two or more people. The owners of the enterprise are called
                 partners. A partnership deed must be signed by all the partners. The profits and losses are shared by the
                 partners. A firm has a limited life span and must be dissolved when any one of the partners dies or claims
                 bankruptcy.

                 Limited Liability Partnership (LLP): In a Limited Liability Partnership or LLP, the partners of the firm enjoy
                 perpetual existence as well as the advantage of limited liability. Each partner’s liability is limited to their
                 agreed contribution to the LLP. The partnership and its partners have a separate legal existence.
                 Cooperative Business: A cooperative business is a member-owned business structure and usually allows
                 a limited distribution of profits to members. It is a kind of private business organisation in which the
                 consumers who use its products and services are its owners. It is a cooperation of individuals who coordinate
                 among themselves to achieve the desired target.





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