Nature and Purpose of Business

Different types of industries are as follows:
1. Primary Industry: The primary industry includes those activities through which the natural resources are used to provide raw materials to other industries. Primary industries are of two types.

• Extractive: It refers to those industries under which something is extracted out of the earth, water or air e.g., coal, iron, gas etc.
• Genetic: It refers to those industries under which the breed of animals and vegetables are improved and made more useful e.g., poultry farms, tree planting etc.

2. Secondary Industry: Under this industry, new products are manufactured by using the previously produced things e.g., producing cotton is a primary industry and manufacturing cloth out of cotton is a secondary industry. It is of two types.

• Manufacturing: These industries convert raw materials or semi finished products into finished products e.g., paper from bamboo, sugar from sugar cane. It is further being divided into four parts.
• Analytical: Different things are manufactured out of one thing e.g., petrol, diesel, gasoline out of crude oil.
• Processing: Those industries wherein useful things are manufactured by making the raw material to pass through different production process e.g., steel from iron ores.
• Synthetic: Many raw materials are mixed to produce more useful product e.g., paints, cosmetics etc.
• Assembling: The parts manufactured by different industries are assembled to produce new and useful product e.g., computers, watches etc.
• Construction Industry: Such types of industries constructions of roads, bridges, buildings etc. are covered.

3. Tertiary or Service Industry: It includes those services which help business to move smoothly e.g. transport, bank, insurance, storage and advertising.