Primary, Secondary And Tertiary Sectors

Question 1

Define the primary sector.

Answer 1

Activities include harvesting, collecting or extraction of raw materials from the natural environment – from the ground, the sea, fresh water or plant sources.

Question 2

What 4 categories can the primary sector be classified into?

Answer 2

Agricultural products
Fisheries
Forestry
Mining

Question 3

Define the secondary sector. (4 points)

Answer 3

Processes raw materials from the primary sector and supplies it to the tertiary sector.
• Input is used to manufacture products by means of a production process. The result is called the output.
• Manufacturing can include manufacturing of semi-finished products that are sold to manufacturers or the consumer.
• Semi-finished products can be used in further production of goods or finished products, such as metal sheets used to make tin cans.

Question 4

Define the tertiary sector.

Answer 4

Activities include bringing the products from the secondary sector to the end consumers, transport of people, communications, and many other services such as education, health, banking and administration.

Question 5

AUXILIARY SERVICES: TRANSPORT

Bridges the s______ gap and therefore the distance between the p________ and the end c_________

Answer 5

Bridges the SPECIAL gap and therefore the distance between the PRODUCER and the end CONSUMER.

Question 6

AUXILIARY SERVICES: STORAGE

Storage bridges the t____ gap- the gap between the time of p________ and the time of c___________.

Answer 6

Storage bridges the TIME gap- the gap between the time of PRODUCTION and the time of CONSUMPTION.

Question 7

AUXILIARY SERVICES: SORTING

Goods are collected and sorted for r__________ and bridge the q______ and v______ gap.

Answer 7

Goods are collected and sorted for REDISTRIBUTION and bridge the QUANTITY and VARIETY gap.

Question 8

AUXILIARY SERVICES: GRADING AND STANDARDISATION

Certain goods need to be classified into grades to indicate q______. Products of manufacturers are s___________ for quality by institutions such as the S___. Grading and standardisation bridges the q______ gap.

Answer 8

Certain goods need to be classified into grades to indicate QUALITY. Products of manufacturers are STANDARDISED for quality by institutions such as the SABS. Grading and standardisation bridges the QUALITY gap.

Question 9

AUXILIARY SERVICES: FINANCING

Money can be borrowed from b______ or other suppliers of c_____ to bridge the p__________ gap.

Answer 9

Money can be borrowed from BANKS or other suppliers of CREDIT to bridge the POSSESSION gap.

Question 10

AUXILIARY SERVICES: INSURANCE

Insurance can be taken out on something of v____ such as expensive assets and bridges the r___ gap.

Answer 10

Insurance can be taken out on something of VALUE such as expensive assets and bridges the RISK gap.

Question 11

AUXILIARY SERVICES: ACTUAL SALES

The p_________ gap is bridged by selling p________ to the c_________.

Answer 11

The POSSESSION gap is bridged by selling PRODUCTS to the CONSUMERS.

Question 12

Define 6 points about the formal sector.

Answer 12

• formally registered to operate under an acknowledged form of business ownership
• purpose of businesses in this sector is to make profit
• registered with SARS for tax and contribute to the GDP (Gross Domestic Product) of the country
• registered with the Department of Labour to pay UIF (to the unemployment insurance fund)
• have their books audited
• have fixed premises and offer employment to more than one worker

Question 13

Define 6 points about the Informal sector.

Answer 13

• businesses are not registered
• purpose is for survival
• Do not contribute to the GDP of the country
• Informal businesses should by law declare income for tax and register employees
• difficult to get loans or credit facilities because there is no official record of income, which limits growth
• no fixed premises

Question 14

Define 4 points about the public sector.

Answer 14

• Owned by the government
• Motive is not to make a profit but to offer a service
• The departments in this sector exist to meet the demand of social and civil rights such as healthcare, education and protection
• Funding is generated by tax

Question 15

Define 4 points about the private sector.

Answer 15

• Privately owned = not owned by the government
• Have a profit motive. Businesses in this sector that do not operate to make profit are NGOs (non-government organisations) and NPOs (non-profit organisations)
• focused to meet the demand of consumers. Some services from the public sector that could be of better quality that the government service
• Funding is generated by private individuals or groups