Economic Sectors Flashcards
what is the primary sector
involves the extraction and production of raw materials form natural resources( e.g. agriculture, mining)
what is the secondary sector
focuses on manufacturing and processing raw materials into finished goods (e.g. factories)
what is the tertiary sector
provides services rather than goods (e.g. retail, hospitality, healthcare)
what is the quaternary sector
entails knowledge-based services, including research and development, information technology and education
how do economic sectors differ between countries
industrialization levels influence sector importance, with developed countries focusing more on tertiary/quaternary sectors and developing countries relying more on primary and secondary sectors
what is deindustrialization in developed countries
a decrease in secondary industries and a rise in tertiary sector activities, often due to consumer demand for services an global competition in manufacturing
what are the consequences of deindustrialization
job losses in agriculture and manufacturing, growth in service sector jobs, and the need for worker retraining
what is the public sector
government-owned organizations providing essential services ( e.g. healthcare, education)
what is the private sector
comprises privately owned businesses focused on profit, ranging from small firms to multinational corporations.
what are the advantages of public corporations
they operate within social objectives, can provide essential services despite losses, and are funded by government financing.
what are the disadvantages of public corporations
they may suffer from inefficiency due to lack of profit focus, government interference, and reliance on subsidies.
what is a sole trader
a business owned and run by one person, often hiring others, with personal assets at risk due to unlimited liability
list two advantages of being a sole trader
- easy to set up with no legal formalities 2. full control and retention of all profits
list two disadvantages of being a sole trader
- unlimited liability, meaning personal assets are at risk. 2. difficulty raising funds for expansion
what is a partnership
a business owned by two or more individuals who share responsibilities, decisions, and profits, often with unlimited liablility
name two advantages of partnerships
- partners can specialize in different areas. 2. shared decision-making and capital contributions.
name two disadvantages of partnerships.
- unlimited liability for all partners. 2. profits must be shard among partners
what is a common issue with continuity in both sole traders and partnerships
the business may end or need reformation if the owner(sole trader) or on the partners dies.
what is a limited company
a limited company is a business structure where the liability of the owners is limited to their investment in the company
what are the key features of private limited companies?
private limited companies have limited liability, cannot sell shares to the public, and often have restrictions on share transfers.
what is a public limited company ?
a public limited company is a business that can sell shares to the public and has limited liability for its shareholders.
what are the advantages of private limited companies
advantages include limited liability, greater control by owners, and less regulatory scrutiny compared to public companies.
