1C :

Question 1

what are the types of business activity ?

Answer 1

• primary production : activity that takes natural resources from the earth e.g. mining , fishing

*secondary production : the process of transforming raw materials into finished goods.

• tertiary production : the provision of services e.g. banking , tourism

Question 2

what are some trends in business activity ?

Answer 2

• does not follow a constant pattern
• service industries are now around 80% of UK’s national economy

Question 3

what are some reasons change ?

Answer 3

• a lack of investment in manufacturing
• increased competition from overseas
• consumer demand

Question 4

what are the roles of small ,medium enterprises (SME’s)

Answer 4

• SME’s provide large amounts of employment

Question 5

why are SME’s so important for the UK economy ?

Answer 5

• if successful might grow into larger companies
• they meet local needs e.g. hair dresser
• they serve the requirements of larger businesses

Question 6

what are the advantages of SME companies ?

Answer 6

• developing personal relationships
• serve niche markets

Question 7

what are the disadvantages of SME’s ?

Answer 7

• lack of economies of scale
• hard work & long hours