Nature of business activity

Question 1

What are the three types of business activity?

Answer 1

Primary, Secondary and Tertiary

Question 2

What is primary sector business activity?

Answer 2

Firms and industries engaged in extracting natural resources so that they can be used and processedby other firms

Question 3

What is secondary sector business activity

Answer 3

Firms and industries that engage in the manufacturing and process of products from natural resource such as computers, brewing

Question 4

What is Tertiary sector business activity?

Answer 4

Firms that provide services to consumers and other businesses, such as retailing, transport, insurance

Question 5

Can a certain sector be larger in a country?H

Answer 5

Yes, developed countries such as the UK produce services but developing countries such as China have a larger secondary sector.

Question 6

How can a larger secondary sector benefit a country?

Answer 6

GDP increases 
Increasing exports 
Employment creation 
Larger taxable firms 
Vale added to countries output of raw materials

Question 7

How can a larger secondary sector harm a country?

Answer 7

Movement from rural areas to urban can cause housing and social problems.
Imports of raw materials are needed more
Most the growth for firms is done by multinational firms

Question 8

How can a larger tertiary sector benefit a country?

Answer 8

Tertiary sector tends to pay higher. This allows access to higher standards of living