Chapter 2
Classification of businesses
STAGES OF PRODUCTION
Stage 1
Stage 1 is called the primary stage of production
This is also called the Primary Sector of Industry
PRIMARY SECTOR of industry extracts and uses the natural resources of Earth to produce raw
materials used by other businesses.
Stage 2
Stage 2 is called the secondary stage of production
This is also called the Secondar Sector of Industry
SECONDARY SECTOR of industry manufacturers goods using the raw materials provided by the
primary sector.
Stage 3
Stage 3 is called the tertiary stage of production
This is also called the Tertiary Sector of Industry
TERTIARY SECTOR of industry provides services to consumers and the other sectors of industry.
CHANGES IN SECTOR IMPORTANCE
-DE-INDUSTIALISATION-
DE-INDUSTRIALISATION occurs when there is a decline in importance of the secondary,
manufacturing sector of industry in a country.
MIXED ECONOMY
A MIXED ECONOMY has both a private sector and public sector
PRIVATE SECTOR – Businesses not owned by the government. The main aim of these businesses are
to make profits
PUBLIC SECTOR – Businesses owned and controlled by the government. Some services such as health
and education are free to the consumers.
CAPITAL
CAPITAL – Money invested into a business by the owners
Classification of businesses
STAGES OF PRODUCTION
Stage 1
Stage 1 is called the primary stage of production
This is also called the Primary Sector of Industry
PRIMARY SECTOR of industry extracts and uses the natural resources of Earth to produce raw
materials used by other businesses.
Stage 2
Stage 2 is called the secondary stage of production
This is also called the Secondar Sector of Industry
SECONDARY SECTOR of industry manufacturers goods using the raw materials provided by the
primary sector.
Stage 3
Stage 3 is called the tertiary stage of production
This is also called the Tertiary Sector of Industry
TERTIARY SECTOR of industry provides services to consumers and the other sectors of industry.
CHANGES IN SECTOR IMPORTANCE
-DE-INDUSTIALISATION-
DE-INDUSTRIALISATION occurs when there is a decline in importance of the secondary,
manufacturing sector of industry in a country.
MIXED ECONOMY
A MIXED ECONOMY has both a private sector and public sector
PRIVATE SECTOR – Businesses not owned by the government. The main aim of these businesses are
to make profits
PUBLIC SECTOR – Businesses owned and controlled by the government. Some services such as health
and education are free to the consumers.
CAPITAL
CAPITAL – Money invested into a business by the owners
