Classification of business 1.2 Flashcards
What is the primary sector
Sector that only uses natural resources from earth such as fishing or farming
What is the secondary sector
Manufacture goods from the natural resources such as car manufacturers
What is the tertiary sector
Providing services to customers such as travel agents, restaurants
What are the importance of these sectors
Some countries may have more workers in a certain sector leading to them mostly producing in that sector.
What is de-industrialisation
When a certain sector becomes less important to a country
Why does importance of sector change
Resources in the primary sector may be used up
Factory costs and wages are too high
People spend more in tertiary sector as they get wealthier
What is the private sector
Businesses that are not owned by government but private individuals
Main objective is profit
What are the advantages and disadvantages of private sector
High efficiency and lower costs
Competition is encouraged
Some services may be closed
Workers may lose jobs easily as private sector does not care about employment rates
What is the public sector
Businesses owned by the government. Main goal is to provide for citizens
What are the advantages and disadvantages of public sector
Business is funded by government
Encourage more jobs
Low efficiency
No competition
