business sector

Question 1

primary sector

Answer 1

first stage of the production process
deals with extraction of raw materials from nature

Question 2

examples of primary sector

Answer 2

farming , which produces agricultural products
forestry deals with extraction of raw materials
fishing from sea/lakes
mining , which extracts minerals from earth

Question 3

secondary sector

Answer 3

responsible for processing raw materials into finished products
link between primary sector

Question 4

examples of secondary sector

Answer 4

motor industry
furniture industry
textile industry

Question 5

tertiary sector

Answer 5

distributes goods processed in the secondary sector to
consumers.
aims to bring products and services within reach of the
consumer.

Question 6

Examples of the tertiary sector

Answer 6

Food industry
Clothing industry
Banking, insurance

Question 7

The relationship between the primary: secondary and tertiary sectors

Answer 7

primary sector depends on the secondary sector for manufactured goods such
as machinery/equipment/fertilisers e.g. a farmer may require seeds from another
farm
 The primary sector is dependent on the tertiary sector for its customer needs

Question 8

The relationship between the secondary : primary and tertiary sectors

Answer 8

secondary sector depends on the primary sector for raw materials and products.
 The secondary sector depends on other secondary industries e.g. BMW needs tyre
from DUNLOP
 Secondary sector needs the tertiary sector to sell their processed or manufactured
goods

Question 9

The relationship between the tertiary sector ,the primary, secondary

Answer 9

depends on the primary sector for raw materials that do not need
processing by the secondary sector
depends on the secondary sector for manufactured goods such as
office machines/office furniture/stationery

Question 10

Meaning of the formal sector
IMPORTANCE

Answer 10

refers to businesses that are registered and pays tax
sector includes small, medium and large businesses.
They are controlled by laws and regulations of the government
IMPORTANCE
They supply legal products
employ many people with different skills and qualifications.

Question 11

Meaning of informal sector
IMPORTANCE

Answer 11

Informal sector refers to businesses that are not registered and does not pay tax.
 This sector includes activities by people who are unable to find jobs
IMPORTANCE
Serves as buffer between employment and unemployment.

Question 12

Differences between formal and informal sectors

Answer 12

formal sector
legally registered
registered to pay tax
Made up of small, medium and large business
higher capital required in this sector
informal sector
not legally registered
not registred and doesn’t pay tax
small scale operations
low capital needed for operation

Question 13

Meaning of the public sector

Answer 13

owned/ contolled by the state
Aimed at meeting the needs of society
motive is not to make profit but offer a service.

Question 14

Purpose of the public sector

Answer 14

Aims to meet the needs of society.
 Public sector businesses do not aim to make profit.
 Provides people with job opportunities.
 Improves the general standard of living of all people.
Ensures that wealth of the country is spread equally among the rich and the poor.

Question 15

Meaning of a private sector

Answer 15

Privately owned by entrepreneurs
 Aimed at meeting both the need and wants of the society
 Profit-driven businesses

Question 16

Purpose of private sector

Answer 16

Creates job opportunities for different types of skills
Provides businesses with the opportunity to create wealth
Offers more competitive salaries than the public sector

Question 17

The differences between the public and private sectors

Answer 17

Public sector
state owned
aimed at meeting the needs of society
motive to provide a service
state owned businesses report to government
Private sector
owned by private entrepreneurs
aimed at meeting both the needs and wants of society
motive ,profit driven
business report to owner