Sectors Of Industry

Question 1

what is the primary sector?

Answer 1

extracting the natural resources (e.g. farming and mining)

Question 2

what is the secondary sector?

Answer 2

manufacturing and constructing the resources into products (e.g.car manufacturer)

Question 3

what is the tertiary (service) sector?

Answer 3

providing services such as banking and tourism (e.g. transport, retailing)

Question 4

what is the quaternary (information) sector?

Answer 4

New sector of industry and includes business which provide information services. (e.g. research and development)

Question 5

what is the public sector owned and controlled by?

Answer 5

Central Government e.g. NHS, Police, HMRC

Local government e.g. Dundee City Council, schools, and SQA.

Question 6

what is the public sector main objective?

Answer 6

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.

Question 7

how are businesses in the public sector financed?

Answer 7

These businesses are financed via taxes paid by the public.

Question 8

examples of local authorities?

Answer 8

• EDUCATION – nursery, primary, secondary, colleges
• LEISURE AND PARKS – swimming pools, golf courses, libraries
• HOUSNG
• ENVIROMENTAL SERVICES– refuse collection
• SOCIAL SERVICES – community care, social work

Question 9

how are local authorities financed?

Answer 9

• central government
• business rates
• council taxes
• charges for local services

Question 10

who run local authorities?

Answer 10

locally elected councillors.

Question 11

what do central government departments include?

Answer 11

• HEALTH– NHS
• DEFENCE– armed forces, navy
• WORK AND PENSIONS
• TRANSPORT– road networks
• EDUCATION– decide on policies
• SOCIAL SECURITY – benefits, job centre
• ENVIRONMENTAL POLICIES – pollution

Question 12

how are central government departments financed?

Answer 12

Finance comes from taxes including:

• PAYE
• VAT

Question 13

how are central governments departments run?

Answer 13

Elected MP’s influence policies and decisions but departments are run on a day to day basis by civil servants

Question 14

how are pubic corporations run?

Answer 14

A government minister appoints a chairperson and a board of directors on the government’s behalf.

Question 15

what does the public corporations do?

Answer 15

They provide a service as directed by the government.

Question 16

how do public corporations receive funding?

Answer 16

Receive funding from the government and raise finance from the public e.g. BBC charge the public for a TV licence.

Question 17

government agencies examples?

Answer 17

• SQA (Scottish Qualifications Authority)
• visIt Scotland
• SDS (Skills Development Scotland)
• business gateway

Question 18

what are the public sector advantages?

Answer 18

1. essential services are provided to all consumers
2. Faces little competition
3. Provides services that could be unprofitable by firms in the private sector
4. Provide employment for many people
5. Provides services for those in the community who cannot afford

Question 19

what are the public sector disadvantages?

Answer 19

1. Often considered to be bureaucratic
2. As no profit motive, can mean lack of motivation
3. A change in government is likely to mean a change in priorities, funding and spending
4. Can often ‘crowd’ out private firms

Question 20

what is the third sector also known as?

Answer 20

Sometimes known as “not for profit” or the voluntary sector.

Question 21

how is businesses in the third sector financed?

Answer 21

Third sector it is financed through donations and are excluded from paying VAT.

Question 22

what is the main objectives of businesses in third sector?

Answer 22

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.

Question 23

what are organisations in the third sector?

Answer 23

Organisation are non-profit making charities or social enterprises whose intention is to help a cause/society in some way.

Question 24

how are organisations in the third sector owned and controlled?

Answer 24

They are owned and controlled by trustees/volunteers and financed through donations, lottery grants, government grants and fundraising.

Question 25

social enterprises in the third sector have what aim?

Answer 25

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.

Question 26

how are social enterprises in the third sector financed?

Answer 26

Finance by donations, lottery grants, government grants, fundraising but also from selling products.