Page 88 - IT_Play_V1.0 Class9
P. 88
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.
86 Information Technology Play (Ver 1.0)-IX

