1c-Classification of business Flashcards
Q: What are the three main business sectors?
A: Businesses are classified into three sectors based on their economic activities:
Primary Sector – Extracting natural resources.
Secondary Sector – Manufacturing and processing raw materials.
Tertiary Sector – Providing services.
Q: What is the primary sector?
A: The primary sector involves extracting raw materials from the land, sea, or air.
Q: What industries are in the primary sector?
Farming – Growing crops and raising livestock.
Fishing – Harvesting seafood.
Forestry – Cutting and managing timber.
Mining – Extracting minerals, oil, and gas.
Q: Why is the primary sector important?
A:
Supplies raw materials for the secondary sector.
Provides food and energy resources.
Q: How has employment in the primary sector changed globally?
Case sturdy: Austalia
Case Study Example: Australia’s economy still benefits from mining and viticulture (wine production).
Q: How has employment in the primary sector changed globally?
Developed countries (e.g., Germany) have low employment in this sector.
Developing countries (e.g., Malawi) still have high employment in agriculture.
Emerging economies (e.g., China) have seen a decline in primary sector jobs due to technology.
Q: What is the secondary sector?
A: The secondary sector involves manufacturing and construction, turning raw materials into finished goods.
Q: What industries are in the secondary sector?
Manufacturing – Car production, textile factories.
Construction – House building, roadworks.
Oil Refinement – Converting crude oil into fuel.
Q: Why is the secondary sector important?
Creates higher-paying jobs than the primary sector.
Produces goods for domestic use and export.
Industrialisation boosts national income.
Q: How has the secondary sector changed globally?
China & India have seen increases in manufacturing jobs.
Developed economies (e.g., Germany) focus more on high-tech industries.
Many businesses have moved factories to countries with lower wages.
How has the secondary sector changed globally?
Case study: China
Case Study Example: China is the world’s largest manufacturer, but secondary sector employment is declining due to automation.
Q: What is the tertiary sector?
A: The tertiary sector involves providing services rather than producing goods.
Q: What industries are in the tertiary sector?
Retail – Selling goods in stores and online.
Healthcare – Hospitals, doctors, nurses.
Banking & Finance – Managing money and loans.
Tourism & Hospitality – Hotels, restaurants, travel services.
Q: Why is the tertiary sector important?
Largest employer in developed economies.
Provides essential services for businesses and consumers.
Generates higher revenue than primary or secondary sectors.
Q: How has the tertiary sector changed globally?
Highly developed economies (e.g., USA, Germany) have over 70% of workers in services.
Thailand’s service sector employs twice as many people now as in 1991.
Growth in the Quaternary Sector – Technology, research, and consultancy services.
Q: How do economies transition between sectors?
Pre-Industrial Stage: High primary sector employment (e.g., Malawi, Haiti).
Industrial Stage: Growth of secondary sector (e.g., India, Brazil, Turkey).
Post-Industrial Stage: Shift to tertiary and quaternary industries (e.g., USA, Germany).
Q: Why do businesses operate across multiple sectors?
A: Some businesses span multiple sectors to control production and sales.
Example: Shell extracts oil (primary), refines it (secondary), and sells fuel (tertiary).
