Business establishments are classified

 

 

Characterize how business establishments are classified under the North American Industry Classification System (NAICS).
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Sample Solution

The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. It was developed to allow for a high level of comparability in business statistics among the three North American countries. NAICS is based on a production-oriented concept, meaning that it groups establishments into industries according to similarity in the processes used to produce goods or services.

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