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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)