Classification of business

Question 1

Primary Sector

Answer 1

The primary sector, extracts and uses the natural resources of earth, to produce raw materials that is used by other businesses.

Question 2

Secondary sector

Answer 2

Manufactures goods or services by using the raw materials provided by the primary sector

Question 3

Tertiary sector

Answer 3

Provides services to consumers and other sectors of the industry.

Question 4

De-Industrialisation

Answer 4

Occurs when there is a decline in the importance of the secondary, manufacturing sector of the industry in a country

Question 5

Mixed economy

Answer 5

Has both a private and public (state) sector

Question 6

Private sector

Answer 6

These are businesses not owned by the government, they make their own decisions, about what to produce, how to produce and what price it should be, their main aim is to make profits.

Question 7

Public sector

Answer 7

These are businesses run by the government using the funds from the taxpayers, some pubic sector businesses are free, for example education or health services.

Question 8

Capital

Answer 8

Is the money invested into the business by the owners