Classification of Business Sectors

Questions and Answers

What is the primary sector?

Provides goods and services to consumers

Declines in importance

Extracts and uses the natural resources of the earth (correct)

Manufactures goods using raw materials

What does the secondary sector do?

Owned and controlled by the government

Manufactures goods from raw materials (correct)

Provides services to consumers

Extracts natural resources

What is the tertiary sector known for?

Extracting natural resources

Declining in industrial importance

Manufacturing goods

Providing goods and services (correct)

De-industrialisation occurs when the primary sector declines.

False Signup and view all the answers

What is a mixed economy?

An economy with both a private sector and a public sector. Signup and view all the answers

The private sector is owned and controlled by the government.

False Signup and view all the answers

The public sector is owned and controlled by private individuals.

False Signup and view all the answers

What is privatisation?

When a public sector company is sold to the private sector Signup and view all the answers

What is meant by capital in a business context?

Money invested into a business by the owners. Signup and view all the answers

Study Notes

Classification of Business Sectors

Primary Sector: Engages in extracting and utilizing natural resources, producing raw materials for subsequent industries.
Secondary Sector: Involves manufacturing goods from raw materials supplied by the primary sector, focusing on transforming inputs into finished products.
Tertiary Sector: Provides various goods and services to consumers and industries, emphasizing service-oriented activities.

Economic Concepts

De-industrialisation: Characterizes a reduction in the significance of the secondary manufacturing sector within a nation, often leading to economic shifts.
Mixed Economy: Combines elements of both private and public sectors, balancing market freedom with government intervention.
Private Sector: Comprises businesses owned and managed by private individuals or groups, driven by profit motives.
Public Sector: Encompasses enterprises owned and managed by the government, aiming to provide public services and goods.

Business Transactions

Privatisation: Refers to the process of transferring ownership of a public sector company to the private sector, often to enhance efficiency and profitability.
Capital: Represents the financial resources invested in a business by its owners, crucial for funding operations, expansion, and growth.

Description

This quiz focuses on the different sectors of the economy, specifically the primary, secondary, and tertiary sectors. Each sector is defined and designed to help you understand their roles in business and manufacturing. Test your knowledge on these essential concepts!