Summary Olevel/IGCSE Business Studies Chapter 2: Classification of Business

BUSINESS STUDIES
SECTION 1
CHAPTER 2: CLASSIFICATION OF BUSINESSES


SECTORS OF THE ECONOMY:
1. PRIMARY SECTOR: Extracts and uses natural resources of Earth
to produce raw materials to be used by other businesses.
 Activities in the primary sector includes farming, fishing,
forestry, extraction of oil, animal production (farm
products).
2. SECONDARY SECTOR: Takes resources provided by the primary
sector and converts them into manufactured and processed
goods.
 Activities in the secondary sector include textile
production, car manufacturing, construction, bread baking
and computer assembly.
3. TERITIARY SECTOR: Provides services to consumers and other
sectors of the industry.
 Activities in the tertiary sector include Doctors,
Hairdressers, Teachers, Banking, Insurance and Transport.


IMPORTANCE OF ECONOMIC SECTORS:
 The 3 sectors of economy are compared by
1. Percentage of the country’s total number of workers employed
in each sector.
OR
2. Value of the output of goods and services and the proportion
this is of the total national output (GDP)