Classification of businesses

Identify and explain business activity in terms of primary, secondary and tertiary sectors;

The basis of business classification;

  • An economy is the resources, material wealth and wealth of a country. The bigger the better. When we say economy we mean the production, distribution and consumption of goods and services in a country.
  • Primary Sector; Industries that produce or extract natural resources (farm,fish,mine)
  • Secondary Sector; Industries involved in processing,constructing and manufacturing natural resources (food processing, oil refining,construction)
  • Tertiary Sector; Service Industries (healthcare, legal services, education)

Identify and explain the reasons for the changing importance of business classification;

  • Developed Economies;
    • Small primary sector, big third
    • Incomes and living standards are generally good
    • A wide range of goods and services are available
  • Rapidly Developing Economies;
    • Shrinking primary sector
    • Incomes and living standards are improving
    • The amount of available goods and services is increasing
  • Developing Economies;
    • Big primary sector, small third
    • Incomes and living standards are poor
    • Few goods and services are available
  • Deindustrialization is when a country shifts from a high number of people employed in the primary and secondary sector, to a lot in the third sector.
    • Disad; Loss of jobs

            People move to cities

  • Adv;  Less pollution

                                 Tourist attractions

Classify business enterprises as private sector or public sector in a mixed economy;

  • Mixed Economy  is an economy that combines private and public sector ownership.
  • Production in any mixed economy is organised by;
    • Private Sector; Business owned and controlled by a private individual and companies (Shops, stores)
    • Public Sector; Organisations owned and controlled by the government (public schools, hospitals)


PrivaCY: privacy

Proudly powered by WordPress