Companies are generally classified into three categories: service companies, commercial companies and manufacturing companies. This type of classification is based on the type of goods or services that the company offers to its customers.
They do not manufacture or sell goods, but rather provide services to its customers. For example, the accountant, the lawyer, the plumber, the hairdresser, the IT consultant. The nature of their service has no physical existence
They sell goods to its customers. For example, a jewelry store, a grocery store, a hardware store and a furniture store sell merchandise purchased from a manufacturer or wholesaler.
They make products for their customers. For example, a computer, smartphone, furniture and clothing manufacturer. This category of business transforms raw materials into finished products.