11th Class Business Studies Nature And Purpose Of Business

  • question_answer 18)
    Explain with examples the various types of industries.


    Industry refers to economic activities, which are connected with conversion of resources into useful goods. Industry is concerned with the production or processing of goods and materials as well as breeding and raising of animals. The term industry is used for activities in which mechanical appliances and technical skills are involved. The term industry is also used to mean groups of firms producing similar or related goods. Services such as banking and transport are also referred to as industries sometimes. Industries may be divided into three broad categories namely primary, secondary and tertiary. (i) Primary Industries These include all those activities, which are connected with the extraction and production of natural resources and reproduction and development of living organisms, plants etc. These industries may be further subdivided as follows (a) Extractive Industries These industries extract or draw out products from natural sources. Extractive industries are suppliers of basic raw materials that are mostly products of the geographical or natural environment products of these industries are usually transformed into useful goods by manufacturing industries. Farming, mining, lumbering, hunting and fishing-operations are some important extractive industries. (b) Genetic Industries These industries are concerned with breeding of plants and animals for their use in further reproduction. Seeds and nursery companies, cattle breeding farms, poultry farms, and fish hatchery are examples of genetic industries. (ii) Secondary industries These are concerned with using and processing the materials, which have already been extracted by the primary sector to produce goods for final consumption or for further processing by other industrial units, e.g., the iron ore extracted by mining which is a primary industry, is processed into steel and hence, steel industry is a secondary industry. Secondary industries may be further divided as follows (a) Manufacturing Industries These industries are engaged in producing goods for intermediate or final consumption through processing of raw materials and thus creating form utilities. Manufacturing industries may be further divided into four categories on the basis of method of operation for production. • Analytical Industry Which analyses and separates different elements from the same materials, e.g., oil refinery? • Synthetically Industry Which combines various ingredients into a new product, e.g., cements industry. • Processing Industry Which involves successive stages for manufacturing finished products, e.g., sugar and paper industries. • Assembling Industry Which assembles different component parts to make a new product, e.g., car and computer industries. (b) Construction Industries These industries are involved in the construction of buildings, dams, bridges, roads, tunnels and canals. Engineering and architectural skills play an important role in construction industries. These industries are important for infrastructure development. (iii) Tertiary Industries These comprise of support services to primary and secondary industries as well as activities relating to trade. These industries provide service facilities. These may be considered as a part of commerce because as auxiliaries to trade they assist trade. Transport, banking, insurance, warehousing, communication, packaging and advertising are examples of tertiary industries.

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