DISTINGUISH BETWEEN FIRM AND INDUSTRY
Dear Student
Firm is any business concern carrying on particular type of business activities.
Industry is a collection of firms or say collectively firms of same nature dealing in same kind of product line and carrying on similar business activities .
For Example - Soap Industry, Insurance industry , banking industry etc. and the players under these industries carrying on business are called firms .
Firm is any business concern carrying on particular type of business activities.
Industry is a collection of firms or say collectively firms of same nature dealing in same kind of product line and carrying on similar business activities .
For Example - Soap Industry, Insurance industry , banking industry etc. and the players under these industries carrying on business are called firms .
Difference between Firm and Industry
• Industry refers to a kind of business inside an economy while a firm is a business establishment inside an industry.
• There can be many firms inside an industry.
• Industry is not an entity while a firm is a type of company.
• A firm is a type of business whereas an industry is a sub sector of an economy.
• Rules and regulations are made for an industry, and that typically apply to all firms inside the industry
Regards