1.2 Classification of Business

Question 1

Three different sectors of a business

Answer 1

Primary sector
Secondary sector
Tertiary sector

Question 2

Primary sector of a business

Answer 2

Basic production
Extraction of natural resources from the land

e.g.
Agriculture
Mining
Forestry
Fishing

Question 3

Secondary sector of a business

Answer 3

Production of goods
Manufacture goods using resources from the primary sector

e.g.
Construction craft
Car manufacturers
Cloth production

Question 4

Tertiary sector of a business

Answer 4

Services

e.g.
Trade
Banks
Transport
Education
Health

Question 5

Private Sector with their objectives

Answer 5

Individuals own and run business with their own aims and objectives and they get to keep the profits

Objectives
To make profit
Expand
Increase market share

Question 5

Reasons for change in the importance of sectors

Answer 5

Higher levels of education
Growing income increases demand for tertiary
Industrialisation moves country from primary to secondary

Countries that employ more people in the tertiary sector are more advanced in economy/wealthier

Question 6

Public Sector with objectives

Answer 6

Owned predominantly by government and profits are used in the organisation

Objectives
Meet gov targets
Provide public service
Affordable or even free services

Question 7

Government controls

Answer 7

Healthcare
Military
Government schools
Public transport
Basic utilities (water, electricity, etc.)

Question 7

GPD

Answer 7

Gross domestic product
Measure of size of economics

Question 8

Privatisation with adv and disadv

Answer 8

When a government-owned business becomes owned by a private, non-gov party

Adv
Increase competition and efficiency
Makes money to fund things that are gov-controlled

Disadv
Loss-making services closed
Job losses for efficiency
Mostly benefits owners who have less social objectives