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BUSINESS STUDIES – OLEVELCHAPTER 1
Types of business activity
Levels of economic activity
We have 3 stages of the level of business activity:
: Primary productionIt involves all the earth natural resources activities in the primary involve
mining, fishing,forestry, oil extraction.
: Secondary stage of productionThis stage involves taking material and resources from the primary sector and converts theminto manufactured goods. It involves activities like building and construction, air craftmaking baking.
: Tertiary productionInvolves in providing services to consumers and other businesses also this include bankinginsurance hotels and hairdressing
Public and Private sectors of Industry
There are 3 different types of economic system which are used by the countries to managetheir resources efficiently as possible. These are
Free market economy is
1) Where all resources are owned privately.2) There is no government control over land and labour.3) Business produces goods to make a profit.4) They make more profitable goods that consumers demand.5) They make less of less profitable goods.6) Prices are determine by the demand and supply of goods.