1.1 Role of business

Question 1

Primary sector

Answer 1

sector of industry
- natural resources/ raw materials

Question 2

secondary sector

Answer 2

sector of industry
-turning raw materials into something else eg. manufacturing, construction

Question 3

Tertiary sector

Answer 3

sector of industry
-provide services e. restaurant, bank, retail

Question 4

Quaternary sector

Answer 4

sector of industry
-knowledge based sector. consultation, education and research

Question 5

private

Answer 5

sectors of economy
- profit making
- individuals, groups or shareholders invest money
- loans, own money or borrowed
- can be multinational companies, public limited companies or private limited companies

Question 6

public sector

Answer 6

sector of economy
- set up. y governments to provide services locally and nationally
- eg, NHS, education

Question 7

third sector

Answer 7

economy
- charities, voluntary groups and clubs
- provides a device not carried out (or not carried ouot effectively) by private and public
- do not aim to make a profit

Question 8

roles of business in society

Answer 8

• add value
• satisfy consumer needs in a changing environment

Question 9

who owns, controls and finances third sector businesses?

Answer 9

• not owned but trustees can be liable
• controlled by trustees
• financed by donations

Question 10

who owns, controls and finances public sector businesses?

Answer 10

• government owned
• controlled by elected representatives or civil servants
• financed by taxes

Question 11

who owns, controls and finances private sector businesses?

Answer 11

• owned by shareholders
• controlled by a board of directors
• financed by shares or private capital