Question

The U.S. government coding system that classifies a firm by the nature of its business operations is known as the:

A. NASDAQ 100.

B. Standard & Poor's 500.

C. Standard Industrial Classification code.

D. Governmental ID code.

E. Government Engineered Coding System.

Answer 1

The U.S. government coding system that classifies a firm by the nature of its business operations is known as the Standard Industrial Classification code (SIC code).

Step-by-step explanation:

The U.S. government coding system that classifies a firm by the nature of its business operations is known as the Standard Industrial Classification code (SIC code)

The SIC code is a hierarchical system that assigns a unique code to each firm based on its primary economic activities. It was developed by the U.S. government to facilitate data collection, analysis, and reporting across industries.

For example, a company engaged in manufacturing electronic equipment may be assigned the SIC code 3651, while a company involved in retail trade may be assigned the SIC code 5331.