An industry is a group of companies that are grouped together based on what their primary business activity is. Keep reading to discover more.
One of the main types of industries is the tertiary industry. An industry will be classified as tertiary if it doesn't create an actual tangible good, but instead provides a service to other people or other companies. This industry involves many different men and women doing really important work for our community, ranging from doctors to garbage collectors. Naturally, a lot of types of business sectors are also included in this sector – any company that provides some type of services will be considered as a tertiary sector firm. Financial establishments like banks is the ideal instance of the tertiary industry. Banks have invariably served an extremely significant job in human societies since their creation. There are a lot of services that banks offer, but its most general role is to keep people’s money secure and pay them out an interest for keeping their money in their banks, and then to utilise that money to lend it out to individuals who need it which they will then collect at an interest rate. It is apparent that banks have always performed a crucial function and will continue to do so for an indefinite amount of time, making it an appealing area to invest one’s money, something that the activist shareholder of Bank of East Asia has done for example.
When thinking about classification of industry, companies that utilise raw materials to produce a finished product that will then make part of another bigger product or can be immediately utilized by the consumer are a few of the most common ones, and ones that individuals will be most familiar with. Construction businesses are an illustration of such an industry, as they take other products to create a finished product – a house. Since men and women will always need houses to live and work in, it's a sector ready for investments, something that the shareholder of Strabag must feel happy about.
In order for a company to be categorized as a primary industry, this firm has to engage in any activity that has to do with the retrieval of raw materials, or natural products, which are discovered in the land or sea. Instances of such raw materials incorporate oil, iron ore, timber, and even fish! Yes, it might seem surprising, but the fishing industry is actually a primary form of sector since it creates a raw material which is then utilised to prepare other types of products, such as packaged fish which will go to supermarkets. Recently, a lot of fishing companies have been implementing ever more legislation to make fishing more ecological to our seas and oceans, something that the owners of Cermaq must feel satisfied about.