What best defines a service business?

A service business is best defined as an entity that provides a service rather than selling physical products. This includes businesses that offer intangible products such as consulting, education, repair, health care, or financial services. Unlike retail or manufacturing businesses, service businesses do not engage in purchasing goods for resale or creating tangible goods for consumption; instead, they focus on delivering expertise, support, or experiences directly to consumers or other businesses.

This clear distinction helps to categorize businesses based on their primary operations. For instance, options that involve buying goods to resell or manufacturing goods are related to retail or production sectors, which focus on tangible products rather than services. Therefore, the definition that embraces the essence of providing a service most accurately captures what constitutes a service business.