Meaning of plant, Firm and Industry

Plant: The term plant refers to a place or establishment where goods are produced. In other word, it is a particular facility that is used to manufacture a product or produce the substance by the company or business organization.

Characteristics:

• Where goods are produced?
• From where goods are distributed and
• From where goods are supplied?

So plant means a factory, shopping center, or any other establishment. The plant includes not only the building and machinery but also the workers employed therein.

Objective of plant: To provide efficient technology to minimize cost.

Firm: The term firm refers to the business unit or undertaking which owns the plant, control and manage it. The firm is essentially a unit of control, ownership, and management. A firm may be engaged in the production of the same product or products.

Objective of firm: To increase the output/ to minimize the cost.

Industry:  Industry refers to that part of business activity, which is engaged with the raising, producing,processing, fabricating, extracting, and conversion of goods. For example, sugar industry, jute industry etc.

Objective of industry:

1. To achieve/increase physical optima or
2. To achieve/increase economic optima