Sectors Of Industry Flashcards
what is the primary sector?
extracting the natural resources (e.g. farming and mining)
what is the secondary sector?
manufacturing and constructing the resources into products (e.g.car manufacturer)
what is the tertiary (service) sector?
providing services such as banking and tourism (e.g. transport, retailing)
what is the quaternary (information) sector?
New sector of industry and includes business which provide information services. (e.g. research and development)
what is the public sector owned and controlled by?
Central Government e.g. NHS, Police, HMRC
Local government e.g. Dundee City Council, schools, and SQA.
what is the public sector main objective?
Their main objective is to provide service and make effective use of funds available. (They do not operate with a profit but must cover costs and use funds efficiently)
To provide essential services to local communities.
how are businesses in the public sector financed?
These businesses are financed via taxes paid by the public.
examples of local authorities?
- EDUCATION – nursery, primary, secondary, colleges
- LEISURE AND PARKS – swimming pools, golf courses, libraries
- HOUSNG
- ENVIROMENTAL SERVICES– refuse collection
- SOCIAL SERVICES – community care, social work
how are local authorities financed?
- central government
- business rates
- council taxes
- charges for local services
who run local authorities?
locally elected councillors.
what do central government departments include?
- HEALTH– NHS
- DEFENCE– armed forces, navy
- WORK AND PENSIONS
- TRANSPORT– road networks
- EDUCATION– decide on policies
- SOCIAL SECURITY – benefits, job centre
- ENVIRONMENTAL POLICIES – pollution
how are central government departments financed?
Finance comes from taxes including:
- PAYE
- VAT
how are central governments departments run?
Elected MP’s influence policies and decisions but departments are run on a day to day basis by civil servants
how are pubic corporations run?
A government minister appoints a chairperson and a board of directors on the government’s behalf.
what does the public corporations do?
They provide a service as directed by the government.
how do public corporations receive funding?
Receive funding from the government and raise finance from the public e.g. BBC charge the public for a TV licence.
government agencies examples?
- SQA (Scottish Qualifications Authority)
- visIt Scotland
- SDS (Skills Development Scotland)
- business gateway
what are the public sector advantages?
- essential services are provided to all consumers
- Faces little competition
- Provides services that could be unprofitable by firms in the private sector
- Provide employment for many people
- Provides services for those in the community who cannot afford
what are the public sector disadvantages?
- Often considered to be bureaucratic
- As no profit motive, can mean lack of motivation
- A change in government is likely to mean a change in priorities, funding and spending
- Can often ‘crowd’ out private firms
what is the third sector also known as?
Sometimes known as “not for profit” or the voluntary sector.
how is businesses in the third sector financed?
Third sector it is financed through donations and are excluded from paying VAT.
what is the main objectives of businesses in third sector?
Their main objective is to raise awareness for the cause they support, they aim to raise funds to help support these causes, most usually charitable organisations.
what are organisations in the third sector?
Organisation are non-profit making charities or social enterprises whose intention is to help a cause/society in some way.
how are organisations in the third sector owned and controlled?
They are owned and controlled by trustees/volunteers and financed through donations, lottery grants, government grants and fundraising.
social enterprises in the third sector have what aim?
Have a main social or environmental aim but they are run in a business-like way.
Aim to make a profit to reinvest this towards achieving their aim.
how are social enterprises in the third sector financed?
Finance by donations, lottery grants, government grants, fundraising but also from selling products.
