Understanding Income Types

Passive Income
Any business where a single sale continues to generate income indefinitely.

Active Income
Any business where you are required to physically work to provide a service

Product Based / Manufacturing
In our opinion, the worst type of business. Any business where you are required to carry stock, and such stock is sold at a small markup.

Capital Gains
Any type of business where a single sale generates a lot of capital. Often relies on few transactions.

Many businesses are hybrid. And example would be Vending Machines where some actual work is required to stock or maintain the asset(product based), but your presence is not physically required (passive).