Unit 1- Understanding Business Flashcards
What are the sectors of industry?
Primary
Secondary
Tertiary
Quaternary
Explain the primary sector
Businesses taking natural resources from the land (eg mining, fishing, farming)
Explain the secondary sector
Businesses using resources to make or build products (eg ship building, car manufacturers)
Explain the tertiary sector
Businesses that provide services (eg hair dressers, hotels, supermarkets)
Explain the quaternary sector
Businesses providing knowledge based services such as consultancy or scientific research
What are the sectors of economy?
Private
Public
Third sector
Explain the private sector
A business aiming to make a profit
What are the types of private business?
Sole trader
Partnership
Private limited company (LDT)
Public limited company (Plc)
Explain the public sector
A business owned by the government which aims to provide a service to the tax payer
Give examples of the public sector
NHS
South Lanarkshire council
Explain the third sector
Non profit making businesses such as charities and social enterprises
Explain what a sole trader is
A business owned by 1 person ONLY
What are the advantages of being a sole trader?
You keep all the profits
You make all the decisions
What are the disadvantages of being a sole trader?
Unlimited liability
Only your skills
Large workload
Explain what a partnership is
A business owned by between 2 and 20 people
