Topic 5 Flashcards
What are the categories of the business sector
-Primary -Secondary -Tertiary -Formal -Informal -Public -Private
What distinguishes the Categories
-the activities that take place in these sectors
What is the primary sector
-Extracts raw materials from nature -mining -forestry -Agriculture -fishing
What is the secondary sector
-Known as industrial sector -Links primary sector to tertiary sector -production takes place in this sector -raw materials are converted into final products: -clothing manufacture -motor manufacture -furniture manufacture
What is the tertiary sector
-trading of goods and services take place in this sector -brings goods and services within reach of a consumer
What are the two branches in tertiary sector
-Trade - Retail and Wholesale -Services - insurance, Hospitality and finances
What are Formal sector
-Consists of registered business -known as the primary economy because most goods are supplied by this sector -these are legal business -it is difficult and often costly to get into this sector -Jobs in this sector is are scares
What is the informal sector
-businesses are not registered and don’t pay taxes but use the countries infrastructure -known as the second economy -This sector is easy to work in and no education is required -Illegal trade often takes place in this sector
What is the Public sector
-organisation and businesses that are owned by government -services offered to all citizens at lower costs than those in the private sector -service delivery is mostly slower than in the private sector
Examples of the public sector
-Eskom -SABC -Public Schools -public hospitals
What is the private sector
-All business enterprises owned by private individuals -forms part of the formal sector -Creates many job opportunities but little job security -Salaries are higher than in the public sector
