- To receive satisfactory services to the buyers and to make business unit large and

self-sufficient.

4. Circular combination

It refers to combination of firms engaged in different businesses and producing

different products. As an example a cell phone manufacturer combining with a car
manufacturer or a company manufacturing consumer durable combining with a
automobile manufacturing company. The main advantage of this type of
combination is to secure the benefits of administrative integration through common
management.

Q3. Explain the concepts & types of industries in detail.

Ans - Industry refers to production of goods and services for final consumption or
further production and the goods produced by them may be

(i)Producer’s or Intermediate goods

(ii) Consumer’s goods

i) Producers goods or Intermediate goods:

The goods produced by an industry are consumed or used by another industry for
further production are termed as producers goods, for example, machines, tools etc.

(ii) Consumer goods: The goods that are consumed by ultimate customers are
termed as consumer goods, for example, food or items, cloth, electronic items etc.

The industry can basically be classified into three categories:

1. Primary Industries : These include all those activities which are concerned
with the extraction and production of natural resources .

a) Extractive industries
These industries extract or draw out various products from natural resources such as
earth, soil, water, air, etc.

• The materials extracted from natural

resources may be sold in the market as such or used by otherindustries for creating
other products.

• The extractive industries are highly mechanized these days and the products are
minerals, oils, fishing etc.

b) Genetics Industries

These industries rear plants and animals for reproduction, breeding and
multiplication.
Breeding of plants in nurseries, cattle rearing, horticulture dairy farming, sericulture
etc. are examples of activities undertaken by genetic industries.

2. Secondary Industries : These are concerned with using the materials which
have already been extracted at the primary stage.

a) Construction industries:

• These are special kind of industries for they carry their activities at a fixed
location and their products are saleable at fixed sites immovable products and
cannot be transported to market for sale.

b) Manufacturing industries:

• These industries convert raw material or work-in- progress into finished products,
which may be used for final consumption or further production.

• The inputs of these industries are the outputs of extractive industries crude oil for
manufacturing petroleum products or genetic industries sugarcane for manufacturing
sugar.

3. Tertiary industries :