Understanding Business Flashcards
what are the 3 sectors of Quaternary?
- ICT
- consultancy
- R & D
what happens in the ICT part?
Information and communication technology
what happens in the Consultancy part?
offering advice to businesses
what happens in the R&D part?
research and development
what are the 3 sectors of industry?
- primary
- secondary
- tertiary
what happens in the primary sector?
raw materials are taking from the earth (e.g farming, mining)
what happens in the secondary sector?
raw materials are being used to make it into the products (e.g machinery)
what happens in the tertiary sector?
they are providing a service to the public (e.g hairdresser, server)
what is meant by adding value?
value is added to the businesses products while they go down the production line - this is wealth creation.
what are the sectors of economy?
- private
- public
- third
what is the private sector?
when business is owned by a individual - aim is to make a profit
what is the public sector?
consists of the government owned organisations (e.g nhs, police, schools)
what is the Third sector?
organisations that are there to provide goods or services for a cause/benefit of others. (e.g charities , social enterprises)
what is meant by limited liability?
if the company is unsuccessful you only lose the money you put into it.
what is meant by unlimited liability?
if the business is unsuccessful you need to pay the money back out of your pocket.
