Economic Sectors

Question 1

what is the primary sector

Answer 1

involves the extraction and production of raw materials form natural resources( e.g. agriculture, mining)

Question 2

what is the secondary sector

Answer 2

focuses on manufacturing and processing raw materials into finished goods (e.g. factories)

Question 3

what is the tertiary sector

Answer 3

provides services rather than goods (e.g. retail, hospitality, healthcare)

Question 4

what is the quaternary sector

Answer 4

entails knowledge-based services, including research and development, information technology and education

Question 5

how do economic sectors differ between countries

Answer 5

industrialization levels influence sector importance, with developed countries focusing more on tertiary/quaternary sectors and developing countries relying more on primary and secondary sectors

Question 6

what is deindustrialization in developed countries

Answer 6

a decrease in secondary industries and a rise in tertiary sector activities, often due to consumer demand for services an global competition in manufacturing

Question 7

what are the consequences of deindustrialization

Answer 7

job losses in agriculture and manufacturing, growth in service sector jobs, and the need for worker retraining

Question 8

what is the public sector

Answer 8

government-owned organizations providing essential services ( e.g. healthcare, education)

Question 9

what is the private sector

Answer 9

comprises privately owned businesses focused on profit, ranging from small firms to multinational corporations.

Question 10

what are the advantages of public corporations

Answer 10

they operate within social objectives, can provide essential services despite losses, and are funded by government financing.

Question 11

what are the disadvantages of public corporations

Answer 11

they may suffer from inefficiency due to lack of profit focus, government interference, and reliance on subsidies.

Question 12

what is a sole trader

Answer 12

a business owned and run by one person, often hiring others, with personal assets at risk due to unlimited liability

Question 13

list two advantages of being a sole trader

Answer 13

1. easy to set up with no legal formalities 2. full control and retention of all profits

Question 14

list two disadvantages of being a sole trader

Answer 14

1. unlimited liability, meaning personal assets are at risk. 2. difficulty raising funds for expansion

Question 15

what is a partnership

Answer 15

a business owned by two or more individuals who share responsibilities, decisions, and profits, often with unlimited liablility

Question 16

name two advantages of partnerships

Answer 16

1. partners can specialize in different areas. 2. shared decision-making and capital contributions.

Question 17

name two disadvantages of partnerships.

Answer 17

1. unlimited liability for all partners. 2. profits must be shard among partners

Question 18

what is a common issue with continuity in both sole traders and partnerships

Answer 18

the business may end or need reformation if the owner(sole trader) or on the partners dies.

Question 19

what is a limited company

Answer 19

a limited company is a business structure where the liability of the owners is limited to their investment in the company

Question 20

what are the key features of private limited companies?

Answer 20

private limited companies have limited liability, cannot sell shares to the public, and often have restrictions on share transfers.

Question 21

what is a public limited company ?

Answer 21

a public limited company is a business that can sell shares to the public and has limited liability for its shareholders.

Question 22

what are the advantages of private limited companies

Answer 22

advantages include limited liability, greater control by owners, and less regulatory scrutiny compared to public companies.