Professional Documents
Culture Documents
Business
Chapter 1 – Understaing of Business Activity
What you will learn…..
The different levels of business activity
◦ primary, secondary, tertiary
How private & public sectors of industry are organised
How do businesses expand
Tertiary
Secondary
Primary
Levels of business activity
Types of Countries
Developed Developing
Countries Countries
Types of Countries
Varies Significantly with Different
Economies
Free Market
Types of
Economy Command/Planned
Mixed
(Free) Market Economies
(Free)
Market Produce Goods Profit
Economies
Demand & Supply
(Free) Market Economies
Command/Planned Economies
Resources Govt Owned
Economies
Consumers Little Choice
Workers Ordered
Command/Planned Economies
Mixed Economies
(Free)
Market
Economies
Mixed
Economies
Command/
Planned
Economies
Government Controls
Search the internet and find
Using the internet and/or other sources,
find out whether, in your country, the
government owns and controls the
following businesses
◦ Railway Systems
◦ Local Bus Services
◦ Water Supply
◦ Electricity Supply
◦ TV & Radio Supply
◦ Hospitals
Efficiency
When
governments sell
of businesses
they previously
owned to new
owners in the
private sector
Privatization
New owners
Profit Motive
Increase Competition
Government needs
cash
Decision-Making
Changes
Sale
Privatization
Loss-Making
services closed
Job losses
Risk of Monopoly
Benefits