What is the difference between industry and firm

A firm operates within an industry and is a for-profit business organization such as a corporation, partnership, and limited liability company that provides professional services. It can be a partnership or a sole proprietorship, but it is typically a for-profit operation. A business firm consists of more than one physical establishment or more than one location, in which all fall under the same ownership and uses and report under the same Employer Identification Number EIN whereas most firms have just one location when operating.

The term firm can be associated with many things like businesses that practices law and other businesses like consulting, accounting, and graphic design firms. In some countries firm simply means business whereas in some countries firm is used to describe companies such as law firms that provide judicial services.

An industry consists of all the firms or businesses that are involved in the production, and sale of a specific service or product and can be either retail, service, or wholesale. Profitable industries include Legal services, Accounting, Outpatient care centers, Real estate, Offices of health care practitioners.

It is a sector that produces goods or service within an economy where retail industry consists of firms that sell products directly to customers; service industries provide a service to an individual r another firm, whereas, wholesale firms sell products to other businesses. Rosie Normanton answered. An industry is the name given to a certain type of manufacturing or retailing environment.

For example, the retail industry is the industry that involves everything from clothes to computers, anything in the shops that get sold to the public.

The retail industry is very vast and has many sub divisions, such as electrical and cosmetics. More specialised industries deal with a specific thing. The steel industry is a more specialised industry, dealing with the making of steel and selling it on to buyers. The difference between this and a firm is that a firm is the company that operates within the industry to create the product.

The firm might be a factory, or the chain of stores that sells the clothes, within its industry. For example, one firm that makes steel might be Avida steel. They create the steel in that firm for the steel industry.

A firm is usually a corporate company that controls a number of chains in the industry it is operating within. These all operate for the firm Arcadia within the industry of retail. Besides the number of firms in a country can be millions but the number of industries is limited to 20 to 50 as an industry is a much broader concept than a firm. In the case of firms, there is no need for any separate policy or regulation as it has to operate according to industry regulations while as far as industry is concerned its working is dependent and governed by the government policies and regulations which keep changing from time to time depending on the various factors like economic growth of the country, government attitude, people perception, the global economy and so on.

In the case of firms, there is no permanency factor as firms start and shut their business regularly except for few large firms but as far as industry is concerned it remains as long as the economy of the country is functioning. In simple words, firms are like a government of democratic nations just like government keeps changing in democratic countries in the same way firms keep changing but the industry is like democracy just like democracy never end in the same way industry never ends rather it keeps modifying itself.