Activities of a company – What it is, definition and concept

The activities of a company are the different economic activities that, allowing them to be classified into what we call “sectors”, lead them to generate a profitability and, therefore, a profit.

Before starting, it is convenient to pause to mention a couple of concepts that will help us understand what the activities of a company are.

What are economic activities and what is an economic sector?

The economic activities of a company are all those forms by which a good or service is produced, intermediated and / or sold to satisfy a need or desire. Depending on the section in which you are in the value chain, in economics economic activities are classified into three large sectors: the primary sector, the secondary sector and the tertiary sector. For years, and due to the appearance of new activities that were not developed before, the fourth, or quaternary sector, and the fifth, or quinary sector appeared.

But we cannot understand this article well either if we do not know what economic sectors are. For this reason, we ask ourselves now, what are the sectors of activity of companies?

And we must know that when we talk about an economic sector, we refer to each of the parts in which the division of the different economic activities in a country occurs. Generally, taking into account different factors such as the activity they carry out, the added value of the goods or services produced.

To know the activities that make up these large sectors, you can take a look by clicking on the following button:

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What are the activities of a company?

Therefore, when we talk about business activity or the activities carried out by the company, we usually do it to make a classification, or to know the sector to which it belongs. Well, we must know that companies, depending on their activity, can be classified by sectors; such as the aforementioned ones, or how they could be other subsectors such as the tourism sector, the agricultural sector or the automobile sector.

Despite this, there are also other ways of classifying activities according to their activity, being able to assign a code to each of them, which is indicated by the Administration and, in essence, the Government.

In this sense, we can classify them by sectors, but the sector is a somewhat ambiguous classification. To get an idea, we can talk about the textile sector, but this does not tell us if the company fixes tablecloths for restaurants or, on the contrary, is the owner of the largest fashion chain in the country.

For this, there are the codes that the Administration assigns to each company. This, always depending on the activity carried out.

Classification of the activities of a company

As we say, in addition to sectors, we can classify the activities carried out by a company in all countries of the world. It is enough to go to its corresponding classification of economic activities.

In Spain, the different activities carried out by a company, or what we know as economic activities, are classified thanks to the CNAE, which is an organization that carries out this classification. In other countries like Mexico, for example, this body is the SCIAN. Finally, using Colombia as an example, in this country this body is called ISIC.

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Under different names, all of these organisms perform the same task. In other words, all of them are dedicated to classifying companies based on the economic activity they carry out.

Business activities of a company

When we talk about a commercial company, we can also talk about commercial activities.

In this sense, a commercial company is a commercial company that is dedicated to buying goods and then selling them without transforming them. Unlike other types of companies, the commercial company does not transform the purchased goods.

That said, a commercial activity is the economic activity carried out by a commercial company, which consists of buying a good and then selling it, in exchange for a profit.

Therefore, we are talking about a specific type of companies, which also find their classification in the commercial codes of the different countries, but which can also be classified according to whether we are talking about wholesalers or retailers, for example.

Example of business activities of a company

As an example of commercial activities we can find the following cases:

  • Car dealers.
  • Libraries.
  • Supermarket.
  • Clothes shops.
  • Fruit store.
  • Toy shops.

Example of classification of economic activities

To put what we present in this article more into practice, we have extracted a brief extract from the Spanish CNAE code, in which the first group A activities are classified.

However, it must be said that the list is much more extensive.

  1. A.- AGRICULTURE, LIVESTOCK, FORESTRY AND FISHERIES
  2. 01.- AGRICULTURE, LIVESTOCK, HUNTING AND SERVICES RELATED THEREOF
  3. 011.- Non-perennial crops
  4. 0111.- Cultivation of cereals (except rice), legumes and oilseeds
  5. 0112.- Rice cultivation
  6. 0113.- Cultivation of vegetables, roots and tubers
  7. 0114.- Sugarcane cultivation
  8. 0115.- Tobacco cultivation
  9. 0116.- Growing plants for textile fibers
  10. 0119.- Other non-perennial crops
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As we can see, the different sectors are divided, in turn, into subsectors. In the same way that these subsectors are again divided into others, and thus depending on the needs.

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