BS1- Business Sectors And Types Of Business Flashcards
Distinguish between a primary secondary and tertiary sector organisation
Primary- material extraction, e.g getting metal out the ground
Secondary- the manufacture and assembly process
Tertiary- commercial services, supports production and distribution
Distinguish between private, public and third sector organisations
Private- owned by individuals, driven by profit
Public- owned by government, provides goods/services
Third sector- organisations owned and run by volunteers and trustees
Distinguish between local, national and global markets
Local- when customers come from a short distance from the supplier
National- customers spread throughout the country
Global- customers are all over the world
Distinguish between national and multi national business
National- is in one country
Multinational- is operating in multiple countries
Identify three sectors of economic activity
extraction of raw materials (primary)
manufacturing (secondary)
service industries
Sate an example of a business in each sector
Primary- a farm milking cows
Secondary- factory processing the milk
Service industry- Tesco selling the milk
Explain what is meant by a sole trader
A business that an individual owns and runs
Identify one advantage and disadvantage of a business operating as a sole trader
Advantage- easy to set up
Disadvantage- unlimited liability
Explain why continuity is a disadvantage for sole traders
It cannot continue once the sole trader leaves or dies, therefore there is not business after they have gone.
What is meant by a partnership
It is where two people go into business together, they will have to write a legally binding contract including who does what and gets what
One advantage and one disadvantage of a business operating as a partnership
Advantage- if one is ill then the other can cover and keep the business running
Disadvantage- they can fall out with each other making business hard
