I think all Product related Projects should be created of type Software Projects, and all Team based projects should be of type Business Projects. Is this correct?

This question is in reference to Atlassian Documentation: JIRA applications and project types overview

I think all Product related Projects should be created of type Software Projects, and all Team based projects should be of type Business Projects. Is this correct?

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No, but yes, sort of.

We can't actually answer that.  It depends entirely on what your Product and Team users need from their projects.  Your assumption could well be correct for your users, but it might not work for other sets of users or other organisations.

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