Chap 2. Classification Of Businesses

Question 1

Define primary sector

Answer 1

It involves activities dealing with extraction of natural resources.
E.g mining, fishing, faming, oil extraction and agriculture

Question 2

Define secondary sector

Answer 2

It involves activities that process raw materials into finished goods
E.g tea factory, textile firms, car manufacturing, assembly of electronic products

Question 3

Define tertiary sector

Answer 3

It is concerned with services
E.g policeman, doctor, insurance, fire brigade, banking, transport, travel agencies

Question 4

Define de-industrialisation

Answer 4

It is the decline in secondary sector and growth in tertiary sector

Question 5

Give some reasons for de-industrialisation

Answer 5

. People are well educated and prefer white collar jobs
. Depletion of natural resources leads to no work in primary and secondary sector
. Change in consumer demand

Question 6

What is a mixed economy?

Answer 6

It consists of both public and private sector

Question 7

Define public sector.

Answer 7

It is owned and controlled by the government
AIM : Public welfare

Question 8

Define private sector.

Answer 8

It is owned and controlled by private individuals
AIM : profit maximisation

Question 9

What is capital?

Answer 9

Amount of money invested into a business by owners

Question 10

Define efficiency.

Answer 10

Being able to produce maximum output with minimum input, wastages and costs

Question 11

What is market share?

Answer 11

The number of customers who buy the products offered by a business