Understanding business activity

Question 1

Explain industrialisation

Answer 1

Industrialisation is the term used to describe the importance of the secondary sector,manufacturing industries in developing countries
OR
Industrialisation iis the process by which an economy is transformed from primarily agriculture to one based on manufacturing of goods

Question 2

Explain de-industrialisation

Answer 2

Involves a decrease in relative important of industry and manufacturing in economic
OR
De-industrialisation involve an increase importance of service sector to total place of industry

Question 3

Explain mixed economy

Answer 3

A mixed economy has both private and public sector. The government have changed balance between private and public sector business
They have sold public businesses to private sector businesses-called privatisation

Question 4

Advantage of privalisation

Answer 4

(i)Are more efficient-cost are controlled
(ii)More capital can be invested

Question 5

Disadvantage of privatisation

Answer 5

(i)With aim of cutting cost-more workers might lose their jobs
(ii)Less likely to focus on social objective

Question 6

Explain public sector

Answer 6

It refers to business organisation that are owned,controlled and financial by central government

Question 7

Explain the objectives of public sector

Answer 7

(i)To provided public welfare/to (ii)provide a value for money services that meet needs of population

Question 8

Explain private sector

Answer 8

It refers to business own,control and financed by private individual-range from small local businesses(sole trader)to larger businesses that operate throughout the world(multinational)

Question 9

Explain the objectives of private sector

Answer 9

Maximise profit