Generally,business products are classified according to the type of organization that is buying and the purpose of purchase.

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Business products can be classified based on the buying organization and the purpose of purchase. For example, products bought by manufacturers for production purposes are classified as raw materials and components, while products bought by retailers for resale are classified as finished goods. Similarly, products purchased for operational use within the organization are classified as capital equipment, while products meant for resale to customers are classified as consumer products.

Generally,business Products Are Classified According to the Type of Organization