MEANING OF FIRM, PLANT OR FACTORY, INDUSTRY AND COMPANY
Firm Definition: A firm is an independently administered business unit which carries out productive activities such as production, construction or distributive activities. A firm organizes it production in a plant.
Plant or Factory
Definition of a plant or factory
: A plant or factory is a place where a firm carries out its productive activities e.g. farm and quarry. MEANING OF FIRM
An Industry
meaning of industry as a firm
Definition: An industry is the combination of a number of firms producing broadly similar commodities or services for the same market.
meaning of Company under firm
Definition of a company: A company is defined as a legal person or entity created by the association of a number of people in accordance with the law, for the purpose of pooling their capital together in on to set up a business venture. It consist of the activities geared towards the production of goods through extraction manufacturing and construction industry
Capital as a factor of production. What is capital?
Capital may be defined as man made assets used in production. In other words capital refers to man- made wealth or goods used to produce other goods and services. It may also be defined as the stock of previous wealth invested in order to produce future wealth
Capital, when properly combined with other factors, produces goods and services. Examples of capital are physical cash, cutlass, hoe, machines, buildings, motor vehicles, raw materials, semi-finished goods, tools and other equipment used in the production of goods and services.
Definition of a company: A company is defined as a legal person or entity created by the association of a number of people in accordance with the law, for the purpose of pooling their capital together in on to set up a business venture. It consist of the activities geared towards the production of goods through extraction manufacturing and construction industry
