Every industry is important for everyone to fulfill their needs.
The importance of industry is what
it provides for the people or companies engaged in a particular kind of commercial enterprise.
Industry provides goods to consumers. The consumer gleans the benefit of the goods which
enhances their existence by augmenting or provisioning food, clothing, or shelter and even
entertainment. The industrial manufacturer provides employment and means to the employees. It
provides employment enabling people to purchase essential and luxury items. Gives feeling of
accomplishment and purpose to people, by using natural resources and manufactured products
expands employment opportunities. Taxes enable governments to function and provide essential
services. Profits and exports add wealth to industries for expansion meaning more distributable
wealth. Industry results in employment for ancillary support services (hospitals, fire departments,
state and local governments via taxation, infrastructure, and other businesses benefit by having
goods and services for the people within the industrial complex who have wages providing them
with money to spend on those goods and services. Industry provides recreational opportunities
either directly via their own mechanisms (like a hydroelectric plant with a dam resulting in a lake
for boating and swimming or by providing a means (the cash) for people to pursue their own
recreational interests in the form of vacations and leave policies in addition to the wages they
pay. The most significant importance of industry is the advances in science and engineering
provided by the work of industry providing the means for more development of the economic
cycle industry stimulates. Industry is the segment of economy concerned with production of
goods. Many developed countries (The U.K., The U.S. and Canada for example) and many
developing/semi-developed countries (People's Republic of China, India etc.) depend
significantly on industry. Industries, the countries they reside in, and the economies of those
countries are interlinked in a complex web that may be hard to understand at first glance.
Company
A legal entity, allowed by legislation, which permits a group of people, as shareholders,
to apply to the government for an independent organization to be created, which can then focus
on pursuing set objectives, and empowered with legal rights which are usually only reserved for
individuals, such as to sue and be sued, own property, hire employees or loan and borrow money
(Davies & Paul, 1997).
A company is a form of business organization. It is a collection of individuals and
physical assets with a common focus and an aim of gaining profits. This collection exists
in Law and therefore a company is considered a "Legal Person" (Business Link, 2010).
Any entity engaging in business, such as a proprietorship, partnership, or corporation
(Investorwords.com, 2010).
Types of Company
Non-Limited Companies: This type of company can be set up with relatively few formalities. It
can be either a sole trader or partnership and the owner(s) will be personally liable for all of the
debts if the business fails. There is no legal requirement for non-limited companies to make any
of their financial information public. Non-limited companies are generally referred to as
"businesses"
Limited companies: This type of company can be either privately owned when they are referred
to as Limited (often abbreviated to Ltd) or publicly owned (Plc).
Company limited by shares: has shareholders with limited liability and its shares may not be
offered to the general public. Shareholders of private companies limited by shares are often
bound to offer the shares to their fellow shareholders prior to selling them to a third party.
Company limited by guarantee: A company that does not have share capital, but is guaranteed
by its members who agree to pay a fixed amount in the event of the company's liquidation.
Public limited company: Public limited companies can be publicly traded on a stock
exchange — similar to the U.S. Corporation (Corp.) and the German Aktiengesellschaft (AG)
(Business Link, 2010).
Industry
Industry is a classification that refers to a group of companies that are related in terms of
their primary business activities (Investopedia Financial Dictionary, 2010).
Group of productive organizations that produce or supply goods, services, or sources of
income (Britannica Concise Encyclopedia, 2010).
Types of Industry: In economics, industries are customarily classified as primary, secondary,
and tertiary.
Primary industry includes agriculture, forestry, fishing, mining, quarrying, and extracting
minerals.
Secondary or manufacturing industry processes the raw materials supplied by primary
industries into consumer goods, or further processes goods from other secondary
industries, or builds capital goods used to manufacture consumer and no consumer goods;
secondary industry also includes energy-producing industries and the construction
industry.
Tertiary or service industry includes banking, finance, insurance, investment, and real
estate services; wholesale, retail, and resale trade; transportation, information, and
communications services; professional, consulting, legal, and personal services; tourism,
hotels, restaurants, and entertainment; repair and maintenance services; education and
teaching; and health, social welfare, administrative, police, security, and defense services.
Sector
A distinct subset of a market, society, industry, or economy, whose components share
similar characteristics. Stocks are often grouped into different sectors depending upon the
company's business (InvestorWords.com, 2010).
