We often hear a lot of words related to business and these words are so common that we do not understand the difference between them easily and often remain confused.
Similarly, there are some words like Factory, Industry, and Company, what is the difference between them? We are going to understand him today. We have created this article today to remove the confusion between them and give you clear and specific information about these three.
So let’s see what is the difference between them.
What does industry mean?
The industry is such a particular sector of economics that is involved in either manufacturing of goods or providing services. Economic is a group of companies that are similar in their primary business activities.
Some such industries are Chemical and Petrochemicals, Automobiles and Auto-components Construction, Engineering, Financial Services, Food & Beverages, Textiles, Apparels & Accessories, and Real Estate. So now let us tell you that there are 4 sectors of industry,
- Primary Sector – This sector includes Farming, Mining, Lodging, and Raw Materials Extraction and Production.
- Secondary Sector – Talking about this sector, factories come in it, which process products from the primary industry.
- Tertiary Sector – This includes those people who provide services, such as Doctors, Lawyers, Teachers, and many more service providers.
- Quaternary Sector – Talking about this sector, some people are involved in scientific research and the development of new technology.
What does Factory mean?
The Factory is also called a manufacturing plant or production plant which is an industrial site. It is often a complex consisting of many buildings, where machinery is installed, workers manufacturing the product and operating the machines. Factories are a major part of modern economic production, as products are created and processed in factories all over the world.
It is a building where workers use machines to make things that can be sold. In many factories, complete work is done through machines. Today, the modern factories that have big store rooms i.e. warehouses. Which contain manufacturing-related material, heavy tools, and equipment.
Factories can take goods from some other place and make new products from that raw material. The products of every industry are made in the factory itself. Some such factories are Clothing & Textile, Electronics & Computers, Transportation, Food Production, and Metal Manufacturing.
Factories did not always exist, but this system was started at the time of the Industrial Revolution. Before the introduction of this system, the work of preparing the products was done either at home or in a small workshop.
But after the introduction of the factory system, powered machinery, centralized workplace, skilled workers, and labor division were used to manufacture the products on a very large scale.
It is all about Factory and Industry, but if you understand the difference between Factory and Industry, then Factory is a site or location where the making of business takes place. Whereas industry is a collection of businesses that provide the same material or service.
For example, the Beauty Industry, Automobile Industry is only a part of the Factory. Industry whereas Factory the area of Industry is very large. The scope available to the factory is much less than the industry, through factories there is progress in the economy and the industry uses the factory for economic progress.
The industry also helps in improving the living standard of the people of that country. The factory is concerned only with the production of products whereas Industry Concern includes both products and services.
What is the company?
The company is made up of individuals who work together to fulfill the aims and objectives of the company. The company can be of many types like Corporation, Partnership, Association, Private Limited, or Public Limited Company, etc. The different forms of the company depend on its registration and structure.
In law, the company is considered as an individual such as Axis Bank, Infosys, Tata Steel, Tech Mahindra, all these are examples of companies. If you see the difference between company and industry, then the company is a part of the industry i.e. an industry that includes many companies which are involved in manufacturing similar products and services.
The industry is complete in itself and the industry is always bigger than the company. As far as the difference between a factory and a company is concerned, a company is an association or collection of individuals, whereas a factory is a facility where products are made and processed.
Hope you have got the answer to your question. If you have any questions then you can ask us by commenting.