TYPES OF BUSINESS ACTIVITY

Question 1

Chain of Production

Answer 1

The process of a product starting as raw materials manufactured in secondary production and then serviced in some way in tertiary production.

Question 2

Primary Sector

Answer 2

The first stage of production involving the extraction of the raw materials and natural resources.

Question 3

Secondary Sector

Answer 3

The second stage of production, where the raw materials are manufactured in to finished products.

Question 4

Tertiary Sector

Answer 4

The third stage of production, where a service is provided for consumers.

Question 5

Interdependence

Answer 5

The way in which businesses in different sectors of business activity depend on each other. The primary sector depends on the secondary sector to make products from the raw materials it produces. The primary and secondary sectors depend on the tertiary sector to provide the necessary services for the businesses.

Question 6

Specialisation

Answer 6

Where a business concentrates on one particular activity.

Question 7

Added Value

Answer 7

When a business increases the value of a product - for example, making a car from pieces of metal.

Question 8

De-industrialisation

Answer 8

The reduction of importance of the secondary sector of business activity in a country.