Topic 6 Business Sectors

Question 1

Meaning of primary , secondary and tertiary sectors

Answer 1

Business sectors consist of businesses Grouped together.
How the business is classified depends on nature of its product or service.

Question 2

Primary sector meaning

Answer 2

Business extract , collect , cultivate raw materials and natural resources.

Question 3

Primary sector examples

Answer 3

Fishing
Forestry
Mining

Question 4

Secondary sector meaning

Answer 4

Transform raw materials from primary sector into finished or semi finished products.

Question 5

Secondary sector examples

Answer 5

Factories
Electricity
Construction

Question 6

Tertiary sector meaning

Answer 6

Exsist to facilitate the transport distribution and sale of good produced in the secondary sector

Question 7

Tertiary sector examples

Answer 7

Tourism
Financing
Storage

Question 8

Relationship between the sectors

Answer 8

Sectors work together to create economic chain of production. Primary gathers raw materials . Secondary manufactures raw materials into useful goods . Tertiary sells the goods and services .

Question 9

Difference
formal sector:

Answer 9

Controlled by laws and regulations of government.
Activities monitored by government

Question 10

Difference
Informal sector :

Answer 10

Businesses not monitored by the government.
Employees are not protected by any legislation and can easily be exploited

Question 11

Meaning of formal sector

Answer 11

Registered and pay taxes. These businesses are requires to reguster with companies and Intellectual Property Commission.

Question 12

Meaning of informal sector

Answer 12

Workers are self employed. Owners take responsibility for success and failure

Question 13

Importance of formal sector

Answer 13

Business activities are included in GDP figures of the country.
Companies pay taxes on their profits.
Provides large variety of goods and services to satisfy customers.

Question 14

Importance of informal sector

Answer 14

Encourages entrepreneurship and self employment.
It’s easy to enter this sector and serves the needs of individuals.
People start informal businesses to supplement their income iearned in the formal sector.

Question 15

Meaning of public sector

Answer 15

It does not include private companies , voluntary organisations and households

Question 16

Meaning of the private sector

Answer 16

Some of these businesses exsisit in the formal sector or informal sector

Question 17

Purpose of the public sector

Answer 17

Improves the general standard of living of a it’s citizens.
Ensures = distribution of wealth.
Provides various kinds of job opportunities.
Intervenes in the economy to limit anti competitive behavior.

Question 18

Purpose of private sector

Answer 18

Provide businesses with the opportunity to create wealth 4 growth.
Provide employment and contributes to tax revenues.
Support public sector woth public private partnership agreement

Question 19

Differences.
Public sector

Answer 19

Provide public goods and services such as water and electricity to meet people’s needs.
Tasked with improving the general standard of all living citizens.
Companies should ensure equal distribution of wealth among rich and poor.

Question 20

Differences
Private sector

Answer 20

Provide opportunities for other businesses to create wealth for growth.
Also support the public sector through public private partnership agreements.
Offer large variety of goods and services to meet demands of consumers