What classification system is used for categorizing all businesses in North America?

The North American Industry Classification System (NAICS) is the correct classification system used for categorizing all businesses in North America. It was developed jointly by the United States, Canada, and Mexico to provide a consistent framework for the collection, analysis, and dissemination of statistical data related to the economy. NAICS facilitates the understanding of industry structure and the distribution of economic activities, making it a vital tool for government agencies, businesses, and researchers.

NAICS has replaced the Standard Industrial Classification (SIC) system in the U.S. and serves to offer greater specificity and detail for industries, reflecting the evolving nature of the economy and emerging sectors. Each sector within NAICS is assigned a unique code that allows for streamlined reporting and analysis.

While the International Standard Industrial Classification (ISIC) and the Canadian Industrial Classification System (CICS) provide frameworks for classifying businesses, they serve different geographical regions and purposes. ISIC is used internationally and may not align perfectly with North American economic activities. CICS, meanwhile, is specific to Canada and does not encompass the broader North American context. Thus, NAICS stands out as the comprehensive system used across the three countries of North America for industry classification.