Secondary activities

Secondary activities
See also

Secondary activities - it is a type of activity which uses a raw material received by primary activities and manufacture, or turn this into different products which are used by the people. This activity involves the industry of construction and the installation of elements made by other secondary productions. An example is a housebuilding, car assembly or steelmaking [1].

The essence of the secondary activities

All kinds of activities depend upon a grouping of elements. They are called factors . We could distinguish two categories of these. The first one is named natural, physical and the second one is called artificial or economic, sometimes human. The natural factor is a climate (rainfall, temperature), relief (height of land, steepness of land), soils, and resources like materials and energy. Next, economic factors are markets (where good are sold), labor (wages, quality, and quantity), capital (money available), transport (cost and types), technology (recent innovations), government help (national) and the last one- environment (nearness, attractiveness). In the secondary type of activity, the most important is the human factor. They tend to have a bigger influence [2].

Secondary activities in use

A lot of enterprises venture just one type of activity. Some of them, nevertheless, undertake many different activities, making it hard to locate them in a particular industry. Although, these several, there are big and have got huge importance. The accounts manage this with an idea of two strategies [3] :

  • "First, enterprises are subdivided into establishments, and the classification may be done at the level of the establishment rather than the enterprise. An establishment is a unit that carries out all of its activities at a single location and engages in one predominant type of activity. For example, one factory owned by a multinational company could constitute an establishment."
  • Next, activities are divided into principal, secondary and ancillary. Secondary and principal activities have to involve the creation of good, services, that can be sold to another enterprise, even though they may be not sold. Often, goods are used away from the company, such as if the business manufactured elements of use by another appointment within the same company.

Categories of the activities according to the science

Over the world exist a wide range of activities and different categories of them. Usually, there are divided into three. Apart from secondary, there are also two different. One is known as the primary , the next are tertiary sectors. Primary activities include collecting natural resources or extracting from nature. An example is fishing, farming, mining, quarrying or forestry. Tertiary activities are connected with providing people a service. There might be teaching, driving buses, nursing or selling cars [4].

References

Footnotes

  1. Waugh D. 2004, p. 66
  2. Waugh D. 2004, p. 68
  3. Hecht J. 2005, p. 27
  4. Waugh D. 2004, p. 66

Author: Aleksandra Zegiel