business - why businesses exist

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  • what are businesses?
    • businesses
      • business sectors
        • primary sector
          • produces raw materials
            • can be grown
              • e.g. the farming industry grows food
            • can be extracted
              • e.g. the mining industry provides coal and oil "extracted" from the earth
            • can be collected
              • e.g. fishing industry "collects" fish from the sea
        • secondary sector
          • manufactures goods
            • e.g. a chocolate factory turns cocoa and milk (raw materials) into chocolate
            • the building and construction industries are also in the secondary sector
        • tertiary sector
          • provides services
            • some firms provide services for other businesses
              • e.g. warehousing and advertising
              • b to b
            • some firms provide services for consumers
              • e.g. hairdressers, shops and restaurants
              • b to c
            • financial services are used by both businesses and consumers
              • e.g. banks and insurance
      • reasons for setting up a business
        • be your own boss
        • financial gain
        • escape employment
        • to pursue an idea
        • gap in the market
    • sell products or services to customers willing to pay
      • products
        • physical items
          • e.g. furniture and books
          • tangible
      • services
        • actions performed by other people to aid the customer
          • intangible
          • e.g. barbers and plumbers provide services

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