Classification of Businesses

Question 1

how can a Businesses be classified into?

Answer 1

Businesses can be classified into three sectors:
* Primary
* Secondary
* Tertiary Sector

Question 2

define Primary sector, Secondary sector and Tertiary sector

Answer 2

1. Primary sector: this involves the use/extraction of natural resources.
2. Secondary sector: this involves the manufacture of goods using the resources from the primary sector.
3. Tertiary sector: this consist of all the services provided in an economy

Question 3

define industrialization

Answer 3

when there is a rapid increase in the manufacturing and secondary sector

Question 4

de-industrialization

Answer 4

a decline in the improtance od the secondary and manufacturing sector of industry.

Question 5

what are Private and Public Sector

Answer 5

Private sector: where private individuals own and run business ventures. Their aim is to make a profit, and all costs and risks of the business is undertaken by the individual.

Public sector: where the government owns and runs business ventures. Their aim is to provide essential public goods and services in order to increase the welfare of their citizens, not profit motive. It is funded by the taxpaying citizens’ money, so they work in the interest of these citizens to provide them with services.

Question 6

mixed economy?

Answer 6

In a mixed economy, both the public and private sector exists.

Question 7

improtance of economic sectors?

Answer 7

1. emploies workes
2. value of goods and services