Unit 2 - Classification of businesses

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  • Created on: 14-03-13 09:27
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Business sectors
Businesses are classified into three sectors depending on the type of activity they carry out:
1. Primary sector ­ extraction of materials from the earth (e.g. mining, quarrying, fishing,
Involves acquiring raw materials
2. Secondary sector ­ processing of raw materials into finished or semi-finished products
Manufacturing and assembly
3. Tertiary sector ­ service industries (e.g. leisure, transport, finance, distribution, retailing,
wholesaling, insurance, education, education and health care)
Commercial services
Today, secondary sectors move out as inflation and become TERTIARY. This is called
Chain of production
The sectors of businesses are INTERDEPENDENT.
Chain of production shows interdependence. Businesses rely on other businesses on other sectors,
which provide them raw materials, components, manufacturing, or distribution.
+ Sectors of the countries
Zimbawe, Qatar and United Arab Emirates are abundant of raw materials; their predominant sector is
primary sector. Some countries like China and India have a large labour force; secondary sector would be
their predominant sector. Countries like Singapore have a large tertiary sector. This could be because of
the lack of natural resources due to the skills and expertise developed in certain services.
- If the manufacturing company breaks
down, the firms used to supply the
company would get no order.
- A corner shop (tertiary) would rely on
the food ingredients made from
primary sector and the food-processing



I hope I can depend on these notes along with the textbook and pastpapers.

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