Definition of business activity: and its Types

Business activity

We will try to explain in a general way the definition of business activity and the different characteristics of companies with respect to the activities in which they are engaged. The business is a process for commercial or industrial purposes for the benefit of any company. Therefore, the definition of business activity supposes the development of any company in order to increase its profits and its potential in a competitive market. Depending on the type of company, we will find different business activities statement Agent in Australia according to its characteristics.

Expanding this concept, business activity is all that action that a company carries out with the ultimate objective of producing and marketing its goods or services, generating income for the company and, therefore, generating a monetary volume to increase its profits and subsequently gain a volume of a larger internal size to evolve.

Therefore and to achieve this objective, all the tasks or activities carried out within any company need to be supervised by correct internal management of the company and capital, organizing the material resources that are available, in addition to the human resources available in the company to carry out the development of business activities.

Different types of business activity depending on the nature of the company

Business Meeting

As we have mentioned previously, the breadth of the definition of business activity leads us to know the different existing activities according to the type of each company. For this reason, we write below the different business activities that we can find according to the nature of the company divided by sectors or work environments:

  • Primary sector companies : All those companies whose business activities are based on the result of the transformation of natural resources. In this classification we find fishing, livestock, agriculture, forestry, hunting, beekeeping and aquaculture.
  • Secondary sector companies : It involves all those business activities related to the transformation or extraction of raw materials. Within the industrial sector, we find another type of classification according to its development of business activity:
  1. Extractive companies: those that are dedicated solely to the exploitation of natural resources, both renewable and non-renewable.
  2. Manufacturing companies: those that transform matter into a final product. We find two subcategories within this typology, which are the production manufacturers, which are those that satisfy the companies prior to the direct consumer, and the final consumer companies, which are aimed at meeting the needs of the consumers.
  • Tertiary sector companies : focused on the purchase and sale of goods and services. In the case of commercial companies, we find wholesale, retail and commission companies, the latter is a type of company that works as an intermediary, since what it sells is not part of its property.
    On the other hand, we find companies focused on services such as tourism companies, transport, public service, etc.
  • Companies in the quaternary sector : regarding this last sector, the companies that we find have as a business activity the promotion of knowledge, for this reason we find companies related to this area: information, consulting, technology, research and development companies.

The development of the activity from the legal framework of Occupational Risk Prevention

With RD 171/2004, of January 30, article 24 of Law 31/1995, of November 8, on the Prevention of Occupational Risks is developed, in order to record the definitions of the coordination of the business activities, regardless of the type of business activities explained above.

According to art. 2 of this law, in addition to the typology of business activity, it is necessary to analyze the following definitions since our legal compliance will depend on a correct interpretation of them:

  1. Work center: any area, built or not, in which workers must stay or to which they must access due to their work.
  2. Owner of the work center: the person who has the capacity to make the work center available and manage.
  3. Main employer: the employer who contracts or subcontracts with others the performance of works or services corresponding to his own activity and that are carried out in his own workplace.

These definitions are important to be able to guarantee the correct effectiveness of the coordination of business activities and the objectives set out in article 3 that we find in Law 31/1995, of November 8, on Occupational Risk Prevention and that it indicates as mandatory compliance:

  1. The consistent and responsible application of the principles of preventive action established in article 15 of Law 31/1995, of November 8, on the Prevention of Occupational Risks, by companies competing in the workplace.
  2. The correct application of work methods by concurrent companies in the workplace.
  3. The control of the interactions of the different activities carried out in the workplace, in particular when they can generate risks classified as serious or very serious or when activities that are incompatible with each other are developed in the workplace due to their impact on safety and health. from the workers.
  4. The adequacy between the existing risks in the workplace that may affect the workers of the concurrent companies and the measures applied for their prevention.

Inattention to competition is one of the most frequent errors in compliance with Royal Decree 171/2004 for the Coordination of Business Activities, which calls for documenting and exchanging this documentation. If you want to know which are the main errors and breaches in the CAE, download our Premium information.

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By aamritri

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