What is the Difference Between Factory, Industry and Company

We often hear many words related to business and these words are so common that we cannot easily understand the difference between them and often remain confused. So some such words are difference between factory, industry and company.

Difference Between Factory and Industry

Factory Industry
Factory is a site or location where the making process of business is done. Industry is a collection of businesses that provide the same material and service such as: Beauty industry, Automobile industry etc.
Factory is a part of industry. The area of ​​the industry is very wide.
The scope available to the factory is much less than the industry. The scope available to the Industry is much higher than the Factory.
Economy progresses through factory. Industry uses factory for economy. It also helps in improving the living standard of the people of that country.
Factory is only related to the production of the product. The concern of the industry includes both production and services.

Difference Between Company and Industry

Company Industry
Company is an association or collection of individuals. Factory is such a facility where products are made, processed.
The company is a part of the industry. Many companies are involved in one industry.
Similar products and services are involved in manufacturing. The industry is complete in itself and the industry is always bigger than the company.
Axis Bank
Infosys
Tata Steel
Construction & Engineering
Financial Services
Food & Beverages
The different form of the company depends on its registration and structure. Industry is a group of companies that are similar in their primary business activities.
The company is considered to be an individual in the law. 4 sectors of an industry: Primary Sector, Secondary Sector, Tertiary Sector, Quaternary Sector

What does factory mean?

Factory is also called manufacturing plant or production plant, which is a quick industrial site, it is often a complex consisting of many buildings in which machinery is installed. Here workers manufacture and operate machines.

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Factory is a major part of modern economy production, which is processed and created in the products factory all over the world, it is such a building where workers use machines to make such things which can be sold.

In many factories, complete work is also done through machines, nowadays there are modern factories, in them large store rooms (Warehouse) in which manufacturing related heavy tools and equipments are kept.

The factory can take the supply of goods from some other place and can make new products from that row material.

The products of every industry are made in the factory itself and there are such factories like:

  • Clothing and Textile
  • Electronics, Computers and Transportation
  • Food Production
  • Metal Manufacturing

This factory did not always exist, but the factory system was started at the time of industrial revolution.

Before the introduction of this system, the work of product preparation was done either at home or in a small workshop, but after the introduction of the:

  • Factory system
  • Powered Machinery
  • Centralized Workplace
  • Unskilled Workers to manufacture the products on a very large scale And division was used.

What is Industry

Industry is such a particular sector of the economy that is either involved in the manufacturing of goods or provides services. Industry is a group of companies that are similar in their primary business activities.

There are some such industries such as:

  • Chemical and Petrochemicals
  • Automobiles & Auto Components
  • Construction & Engineering
  • Financial Services
  • Food & Beverages
  • Textiles Apparels & Accessories
  • Real Estate

There are 4 sectors of an industry:

  1. Primary Sector: This sector includes Farming, Mining and Lodging and involves the extraction and production of row material.
  2. Secondary Sector: Factories come in this sector which process products from primary industries.
  3. Tertiary Sector: This sector includes those people who provide services such as: Doctors, Lawyer, Teachers and many more service providers.
  4. Quaternary Sector: In the Quaternary sector, people come who are involved in scientific research and development of new technology.

What is a Company

A company is made up of such individuals who work together to fulfill the aims and objectives of the company. Company can be of many types such as: Corporation, Partnership, Association, Private Limited or Public limited company.

The different form of the company depends 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.

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Factory V/S Industry

Factory is a site or location where the making process of business takes place whereas industry is a collection of businesses that provide the same material and service such as: Beauty industry, Automobile industry etc.

Factory is a part of the industry while the area of ​​the industry is very wide.

The scope available to the factory is much less than the industry.

There is progress in the economy through the factory and the industry uses the factory for the economy, and also helps in improving the living standard of the people of that country.

Factory is only related to the production of the product, whereas the concern of the industry includes both production and services.

Company V/S Industry

Company is a part of industry i.e. many companies are involved in an industry which is involved in manufacturing similar products and services.

The industry is complete in itself and the industry is always bigger than the company.

Company is an association or collection of individual whereas factory is a facility where products are made, processed.

Read Also: How to Start an Own Mobile Company with full information

FAQ

What are the types of companies ?

Company can be of many types such as: Corporation, Partnership, Association, Private Limited or Public limited company.

Some Company Examples

Axis Bank, Infosys, Tata Steel, Tech Mahindra are examples of all these companies.

Some industry names

Chemical and Petrochemicals, Automobiles & Auto Components, Construction & Engineering, Financial Services, Food & Beverages, Textiles Apparels & Accessories, Real Estate.

Which are the 4 sectors of an industry ?

1. Primary Sector: This sector includes Farming, Mining and Lodging and involves the extraction and production of row material.
2. Secondary Sector: Factories come in this sector which process products from primary industries.
3. Tertiary Sector: This sector includes those people who provide services such as: Doctors, Lawyer, Teachers and many more service providers.
4. Quaternary Sector: In the Quaternary sector, people come who are involved in scientific research and development of new technology.