1.3 Classification of Businesses Flashcards
(15 cards)
What is meant by classification of businesses?
It refers to categorizing businesses based on their sector and ownership.
What are the three main sectors of industry?
Primary, Secondary, and Tertiary.
What is the primary sector?
Businesses involved in extracting natural resources, such as farming, fishing, and mining.
What is the secondary sector?
Businesses involved in manufacturing or construction – turning raw materials into finished goods.
What is the tertiary sector?
Businesses that provide services such as retail, transport, banking, and entertainment.
Give an example of a business in the primary sector.
A wheat farm.
Give an example of a business in the secondary sector.
A car manufacturing plant.
Give an example of a business in the tertiary sector.
A supermarket or a bank.
What is the private sector?
Businesses owned and operated by individuals or companies for profit.
What is the public sector?
Organisations owned and operated by the government, providing public services.
Give an example of a public sector organisation.
A government-run hospital or public school.
What is a mixed economy?
An economy that has both private and public sector organisations.
How does business classification help in understanding the economy?
It helps identify how different types of businesses contribute to economic activity and employment.
Why might a business move from one sector to another?
Due to changes in market demand, technology, or strategic goals.
What is de-industrialisation?
The decline in importance of the secondary sector and growth of the tertiary sector in an economy.
