Sector 2. Classification Of Business

Question 1

What are the 3 stages of economic activity?

Answer 1

1. Primary
2. Secondary
3. Tertiary

Question 2

What is the primary sector?

Answer 2

• first stage if production process
• extraction of raw materials
  Eg. oil, wood, rice, wheat, tin

Question 3

What is the secondary sector?

Answer 3

• second stage of production process
• manufacturing
  Eg. wood to furniture, cotton to clothes

Question 4

What is the tertiary sector ?

Answer 4

• any business that provides services
• Involves goods that have been made being sold to final consumers
  Eg. HnM, stores, banks, providing services

Question 5

What is De-industrialization?

Answer 5

Decline in the importance of the SECONDARY sector

Question 6

What is Industrialization?

Answer 6

an economy transforms from primarily agricultural to base on the manufacturing of goods and services.

Question 7

What is an entrepreneur?

Answer 7

An individual who starts and operates a business, taking on financial risks in the hope of earning a profit

Question 8

Important traits of being an entrepreneur

Answer 8

Risk taking
Perseverance- ability to keep working towards goals
Innovative- come up with new ideas
Leaders
Self motivated
Organized
Strong communication

Question 9

Benefits and disadvantages of starting a business

Answer 9

Benefits
1. Independence
2. Flexibility
3. Earn profits
4. Control

Disadvantages
1. Capital ( putting their own money )
2. Risk of failure
3. Lack of knowledge n experience
4. Opportunity cost ( Lost of income )

Question 10

What is a mixed economy?

Answer 10

Has both a private and public sector