The Enterprise Standard Industrial Classification (SIC) coding scheme, a published classification of firms into separate industries, is commonly used in practice. SIC codes permit identification of company activities on three levels of detail. Two-digit codes designate a "major group," three-digit codes designate an "industry group," and four-digit codes identify a specific "industry."

\section*{Instructions}

At your library, find the Standard Industrial Classification Manual (published by the U.S. Government's Office of Management and Budget in 1987) and answer these questions:

(a) On what basis are SIC codes assigned to companies?

(b) Identify the major group/industry group/industry represented by these codes: 12, 271, \(3571,7033,75,872\).

(c) Identify the SIC code for these industries:

(1) Golfing equipment--manufacturing

(2) Worm farms

(3) Felt tip markers--manufacturing

(4) Household appliance stores, electric, or gas-retail

(5) Advertising agencies

(d) Suppose you are interested in examining several companies in the passenger airline industry. Determine the appropriate two-, three-, and four-digit SIC codes. Use Wards Business Directory of U.S. Private and Public Companies (Vol. 5) to compile a list of the five largest parent companies (by total sales) in the industry. [Note: If Wards is not available, alternative sources are Standard \& Poor's Register of Corporations, Directors, and Executives; Standard \& Poor's Industry Surveys; and Dun \& Bradstreet Million Dollar Directory.]