Final answer:
Business segments are components identifiable by geographical location, products produced, or services provided, but not by the number of employees as it does not contribute to product differentiation.
Step-by-step explanation:
In business, segments are identifiable parts of a company that can be categorized by different attributes. They are typically defined based on geographical location, the types of products produced, or the services provided. Each of these elements can contribute to differentiated products, which are unique in physical aspects, location, intangible aspects, or perceptions.
However, a company's segments are not categorized by the number of employees, as this does not usually contribute to the differentiation of products or services in the market. Therefore, the factor that is not used to categorize business segments is the number of employees.