_Chapter 2 Classification of Business Flashcards
(17 cards)
What is the primary sector of industry?
The primary sector extracts and uses natural resources to produce raw materials for other businesses.
Example: Farming, fishing, coal mining.
What is the secondary sector of industry?
The secondary sector manufactures goods using raw materials provided by the primary sector.
Example: Building construction, aircraft and car manufacturing, computer assembly, bread baking.
What is the tertiary sector of industry?
The tertiary sector provides services to consumers and other sectors of industry.
Example: Transport, banking, retail, insurance, hotel.
What is de-industrialisation?
De-industrialisation occurs when there is a decline in the importance of the secondary, manufacturing sector in a country.
What is a mixed economy?
A mixed economy has both a private sector and a public (state) sector.
What is capital in a business context?
Capital is the money invested into a business by the owners.
What defines the primary sector in stages of economic activity?
The primary sector extracts and uses natural resources to produce raw materials for other businesses.
What defines the secondary sector in stages of economic activity?
The secondary sector manufactures goods using raw materials provided by the primary sector.
What defines the tertiary sector in stages of economic activity?
The tertiary sector provides services to consumers and other sectors of the industry.
What factors compare the importance of economic sectors?
The sectors are compared by the percentage of total workers employed and the value of output of goods and services compared to total national output.
What is the trend in developing countries regarding economic sectors?
Developing countries have more primary industry than manufacturing.
What is the trend in economically developed countries regarding economic sectors?
Economically developed countries often buy many manufactured goods from other countries.
What is the trend in most developed countries regarding economic sectors?
In most developed countries, the output of the tertiary sector is higher than the combined output of the other two sectors.
What is privatisation?
Privatisation is when the government sells some public sector businesses to private sector businesses.
What is the objective of a businessman?
The objective of a businessman is to earn profit.
What is the objective of the government in a mixed economy?
The objective of the government is to provide service to the people.
Why does the government privatise public sector businesses?
The government does this because private sector businesses are often more efficient and can invest more capital.
