Business Studies – iGCSE

0450

1.2 – Classification of Businesses

How to Answer a Paper 2 Question
Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

1 – Definition
LO2: Be able to prepare a2effective
– Application
Splash Screen3 and
– Analysis
Navigation Screen4 - Evaluation
In relation to XXXX, the YYYY (DEFINITION) is relevant (APPLICATION) to the
business by…
This means that … (ANALYSIS)
Therefor …. (BALANCE FOR ANALYSIS)
However …. (BALANCE FOR ANALYSIS)
Based on the evidence provided in the Case Study, I would agree/disagree about
XXXX because …. (Evaluation)
Example:
Q1 – Haltec, a computer company has decided to market the release of a new brand of
gaming mouse. In your opinion, how could they use Product as their unique selling
point.
A1 – In relation to the Product, marketing that is aimed at emphasizing the quality of the
product as the best thing about it, this means that Haltec would show the quality in
advertisements like magazine adverts. Therefor the audience would be made aware of
the good points like size, speed, ability. However this may conflict with its price or the
place where they advertise.
Based on the evidence provided in the case study, I would agree that if the product is of
good quality then using Product as the USP would benefit the company more than the
other P’s in marketing as this is what the customers will look for in computer equipment.
Assignment Scenario
Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

LO2: For this

Be able project
to prepare you will
a effective need
Splash to select
Screen a company
and Navigation Screenthat produces
or provides a range of products or services that employs at least
10 members of staff with a varied job range.
 Ideally this company should have a production, distribution and
sales side to it so that the staff employed do different work tasks,
share resources among departments and should have rivals.
 It can be within any industry, a shop that sells, a company that
provides help and support packages, a delivery company, a
restaurant or food shop but preferably not a franchise as this
makes it difficult when it comes to rules and regulations that
apply.
 You can make up the company as long as you use the above
guidance to set the limits of what the company does and sells. If
you choose a company, it should be one you are familiar with
and can research things like ownership, grants, staffing issues
and laws that apply.
1.2 – Assessment Objectives
Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

Outlines
LO2: Be able tobelow
prepare aare theSplash
effective objectives forNavigation
Screen and this section
Screen of the Unit.
They should be revised as part of the exam preparation.
1.2.1 - Business activity in terms of
primary, secondary and tertiary sectors: What it is that a
business wants to
• Basis of business classification, achieve and how
they go about getting
e.g. by using examples that.
• Reasons for the changing Who makes the
products companies
importance of business sell.
classification, e.g. in developed and What else a boss
wants from the
developing economies company.
1.2.2 - Classify business enterprises Does image matter
Why do similar
between private sector and public companies sell more
or less of the same
sector in a mixed economy products.
1.2 – Glossary
Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

These
LO2: Be ableare the technical
to prepare terms
a effective Splash you
Screen andwill needScreen
Navigation to know for the
exam. Add them to your own Glossary.
The Primary Sector - The section of industry that resources
goods e.g. Mining, Drilling.
The Secondary Sector - The section of industry that that
manufactures goods using the raw materials provided by the
primary sector.
The Tertiary Sector - The section of industry that provides
services to consumers and other sectors of industry.
De-Industrialisation – Occurs when there is a decline in the
importance of the secondary, manufacturing, sector of industry
in a country.
A Mixed Economy – Has both a private and public (state)
sector.
Capital – The money invested in a business by the owners.
1.2.1 – Basis of business classification
Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

LO2:All businesses
Be able to prepare whether
a effectivethey are
Splash product
Screen based or Screen
and Navigation
service based are categorised into sectors consisting What it is that a
of Primary, Secondary or Tertiary. Even wholly online business wants to
achieve and how
companies fall into these categories. they go about
 Whether a company is profit or non-profit, Public getting that.
Limited or Privately owned, Charity or Supplier, it will Who needs does
your primary
belong to one of three Business sectors, it either product have to
sources goods or a service (Primary), prepares make it more
goods or a service (Secondary) , or sells goods or sellable.
service (Tertiary). What are the
wants and needs
 It is possible to be a member of all three categories of the staff within
like Shell, or two like Nike but there are political, your company.
social, ethical and commercial implications in all Does image
matter
three sectors that need to be addressed by
businesses that make them different.
1.2.1 – Basis of business classification
Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

LO2:Businesses can also be split Splash

into different
Screen sectors

Be able to prepare a effective and Navigation Screen
namely:
 PRIMARY – the Resourcing of raw materials such
as drilling, logging and mining, termed natural
resources.
 SECONDARY – the production/manufacturing raw
materials into useful products, such as Dairy Crest or
Barratts, the house builders
 TERTIARY – service provider that compliment and
support the production/distribution of useful
products, such as retailers and banks
 The names of the sectors show that they are linked as
a sequence – often referred to as the chain of
production. Primary is the first stage, secondary is
the second and tertiary is the third. You can see how
this works on the illustration below.
 Some businesses might fall into 2 or more sectors –
organisations that deal with diamond and oil
(petrol/diesel)
1.2.1 – Basis of business classification - Primary
Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

 Primary– the collection/acquiring of raw materials, such as farming

LO2: Be able to prepare a effective Splash Screen and Navigation Screen
and mining. The primary sector includes all those businesses which
produce or obtain raw materials or natural products from the land or
the sea. There are four main categories in this sector. What it is that a
 Agriculture, Hunting and Forestry - This category covers the business wants
production of crops, such as vegetables and cereals and animal to achieve and
how they go
farming as well as landscape gardening and horticultural businesses.
about getting
 Forestry and Logging - This category includes all businesses that.
involved with planting, conserving and felling timber as well as Who’s needs
Christmas tree growers such as Festive Forestry at does your
www.festiveforestry.co.uk. Although the overall woodland area and primary product
the amount of softwood grown in Britain has increased in the past have to make it
ten years, Britain does not grow enough to meet its needs and more sellable.
imports wood from abroad. What are the
 Fishing - This group includes fishing fleets as well as fish farms, wants and
such as trout hatcheries, salmon farms and freshwater mussel needs of the
growers. staff within your
company.
 Mining and Quarrying - This group includes coal mines, oil and
natural gas extraction, quarrying of all types of stone, slate, gravel, Does image
matter
sand and clay and salt production.
1.2.1 – Basis of business classification - Secondary
Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

 Secondary
LO2: Be able –tothe production/manufacturing
prepare a effective Splashraw materials
Screen andintoNavigation
useful products,
Screen
such as Dairy Crest or Barratts, the house builders
 The secondary sector includes all those businesses which manufacture, process or
assemble products. This sector also covers energy production and the construction What it is that a
industry.
business wants
 Manufacturing - This includes all businesses which make or produce goods in the to achieve and
UK, regardless of their size or what they make. The Office of National Statistics
how they go
divides manufacturing companies into different product groups. This is helpful
because it enables you to see which types of manufacturers are thriving and which
about getting
are not. that.
 Engineering - Engineers are employed in manufacturing industries, mainly in Who’s needs
relation to the design and functioning of machinery and equipment. Light engineering does your
companies make small items where precision is important, such as scientific primary product
equipment. Heavy engineering companies make goods comprising large sections of have to make it
metals, such as ships or cranes. more sellable.
 Energy production - In addition to products, we all need electricity, gas and water.
This group includes those that produce and distribute these services, such as
What are the
Powergen and London Energy. This also includes regional water companies, such as wants and
Anglian Water Services and water collection and bottling companies. In the future needs of the
Britain is looking at obtaining more energy from alternative sources, such as wind staff within your
farming and tidal energy. These businesses, too, will be classified in this group. company.
 Construction - This group includes house builders and civil engineering companies. Does image
Between them they construct all types of buildings as well as motorways, bridges, matter
roads and railways. Also included are electricians who work on building sites and
plumbers, plasterers, joiners, painters and glaziers.
1.2.1 – Basis of business classification - Secondary
Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

 Product
LO2: groups
Be able to prepare a effective Splash Screen and Navigation Screen
 Food products, beverages and tobacco, e.g. meat and poultry, fish
freezing, fruit and vegetable processing, dairy products and ice cream,
breakfast cereals, pet food, bread, sweets, chocolate, wines, mineral What it is that a
water, soft drinks, beer and tobacco. business wants
to achieve and
 Textiles and textile products, e.g. cotton and woollen goods, soft
how they go
furnishings, carpets, knitted and leather clothes. about getting
 Leather and leather goods, e.g. handbags, luggage and footwear. that.
 Wood and wood products (excluding furniture), e.g. sawmilling, Who’s needs
wood containers, plywood and veneers. does your
 Pulp, paper products, publishing and printing, e.g. paper, cartons and primary product
boxes, wallpaper, book and newspaper publishing, reproducing sound have to make it
or video recordings or computer media, Coke, refined petroleum more sellable.
products and nuclear fuel processing What are the
 Chemicals, chemical products and man-made fibres, e.g. chemicals, wants and
industrial gases, dyes, plastic, synthetic rubber, paint, printing ink, needs of the
soap, pharmaceuticals, detergents, manufacturing unrecorded media staff within your
company.
(e.g. blank CDs), perfume, glue, man-made fibres.
 Rubber and plastic products, e.g. rubber tyres, plastic tubes and Does image
matter
packaging, plastic floor coverings
1.2.1 – Basis of business classification - Secondary
Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

 Product
LO2: Be ablegroups
to prepare a effective Splash Screen and Navigation Screen
 Non-metallic mineral products, e.g. glass, ceramic goods (such as

sinks, baths and tiles), bricks and cement manufacture, finishing of

ornamental and building stone. What it is that a
business wants
 Basic metals and fabricated metal products, e.g. iron, steel,
to achieve and
aluminium, lead, zinc, tin and copper goods, central heating radiators how they go
and boilers, cutlery, tools, locks, wire, screws. about getting
 Other machinery and equipment (Engineering industries), e.g. that.
pumps, compressors, furnaces, ventilation equipment, agricultural Who’s needs
machinery, power tools, earth-moving machinery, domestic appliances. does your
 Electrical and optical equipment (Engineering industries), e.g. primary product
office machinery, computers, electric motors, batteries, electric lamps, have to make it
televisions and radios, medical and more sellable.
 surgical equipment, cameras, watches and clocks. What are the
wants and
 Transport equipment, e.g. motor vehicles, trailers, caravans, motor needs of the
vehicle parts and accessories, ships, boats, trains, aircraft and staff within your
spacecrafts, motorcycles and bicycles company.
 Other manufacturing not listed above, e.g. furniture, mattresses Does image
jewellery, musical instruments, sports goods, games and toys, brooms matter
and brushes; recycling of scrap metal.
1.2.1 – Basis of business classification - Tertiary
Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

 Tertiary
LO2: Be able-toService
prepareprovider that
a effective compliment
Splash and
Screen and support Screen
Navigation the
production/distribution of useful products, such as retailers
and banks
What it is that a
 This Tertiary sector includes every type of business that offers business wants
a service including Government owned establishments. to achieve and
 Private services are purchased by businesses and individuals. how they go
They are offered by privately owned businesses including about getting
that.
retailers, accountants, banks, communications companies,
consultants, private clinics and hospitals, publishers, transport Who’s needs
does your
and distribution firms, travel agencies and many others. primary product
 Public services are provided locally and nationally by the have to make it
government and local authorities, for example education, more sellable.
emergency services, housing, law and order, defence and What are the
military activity, social services, local planning, recreational wants and
facilities and so on. needs of the
staff within your
 Voluntary and not-for-profit services are provided by charitable company.
and voluntary organisations in areas such as social care, Does image
community health care, global development, environmental and matter
wildlife protection.
1.2.1 – Basis of business classification - Secondary
Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

 Main
LO2: groupings
Be able to prepare a effective Splash Screen and Navigation Screen
 Wholesale and retail trade, e.g. all wholesalers and retailers,

including market stalls and dispensing chemists, plus

repair/maintenance businesses such as garages, watch repairers, What it is that a
cobblers. business wants
to achieve and
 Hotels and restaurants including camping sites, youth hotels, how they go
holiday centres, take-away food shops and stands, pubs and bars. about getting
 Transport, storage and communication, e.g. taxis, furniture that.
removals, freight transport by road, rail, sea, canals and air, all Who’s needs
passenger transport, pipelines, cargo handling and storage, travel does your
agencies and tour operators, post and courier services, primary product
telecommunications. have to make it
more sellable.
 Financial services, e.g. banks, building societies, finance houses,
insurance companies and pension funds. What are the
wants and
 Real estate, renting and business activities, e.g. estate agents, needs of the
car hire firms, all rental firms, computer consultants, software staff within your
developers, office equipment repairers, solicitors, accountants, company.
market research companies, quantity surveyors, architects, Does image
advertising agencies, recruitment companies, security firms, matter
industrial cleaners, photographers, secretarial agencies, call centres,
debt collectors, exhibition organisers.
1.2.1 – Basis of business classification - Secondary
Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

 Main
LO2: groupings
Be able to prepare a effective Splash Screen and Navigation Screen
 Public Administration and Defence, e.g. government
agencies which oversee health care, education and What it is that a
other services, defence activities, the justice system, business wants
the police and fire service. to achieve and
how they go
 Education, e.g. all schools, colleges and universities, about getting
driving schools, private training firms. that.
 Health and Social work, e.g. hospitals and nursing Who’s needs
does your
homes, doctors, dentists, vets, social workers. primary product
 Other community, social and personal service have to make it
more sellable.
activities, e.g. Sewage and refuse disposal,
professional organisations and trade unions, religious What are the
wants and
and political organisations, film and video production needs of the
and distribution, radio and television, theatres, fair and staff within your
amusement parks, news agencies, libraries, museums, company.
sports centres, dry cleaners, funeral directors, Does image
hairdressers, beauty therapists, gyms and fitness matter
centres, nature reserves.
1.2.1 – Basis of business classification – Trends in Business Activity
Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

LO2:InBethe
ablepast, Britain
to prepare was more
a effective dependent
Splash Screen andon the primary
Navigation and secondary
Screen
sectors for income and jobs. Now, however, the fastest growing sector in
the UK is the tertiary sector, which today represents around 76% of the
workforce.
 Value of goods + services produced in the UK (as a %)

Q1 - In which sectors has business

production declined and in which has it
grown?
Q2 – Why do you think this is?
Q3 – For your economy, is the trend the
same or different and why?
1.2.1b – Decline - Primary and Secondary Sectors
Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

1.2.1b
LO2: – Decline
Be able to prepare-aPrimary and Secondary
effective Splash Sectors Screen
Screen and Navigation

• A key factor in the decline of both the

primary and secondary sectors in recent What it is that a
years has been the impact of business wants
to achieve and
competition from overseas: how they go
• Greater demand for raw materials in the about getting
UK has been increasingly met by that.
imports from China, Korea, Japan and Who’s needs
does your
Germany. primary product
• Many manufacturing businesses have have to make it
relocated overseas where production more sellable.
costs are cheaper such as production in What are the
the Far East or Call Centres in India. wants and
needs of the
• Remaining UK-based manufacturing staff within your
businesses have been forced to company.
continually lower their prices because Does image
of low-cost imports. matter
1.2.1b – Growth – Tertiary Sectors
Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

1.2.1b
LO2: – Growth
Be able to prepare-aTertiary
effective Sectors
Splash Screen and Navigation Screen

• The growth in the tertiary sector has

occurred for a number of reasons: What it is that a
business wants
• Increases in disposable income have to achieve and
resulted in consumers spending more how they go
money on services, e.g. in restaurants, about getting
at the cinema or on holidays. that.
Who’s needs
• Many tertiary businesses in the does your
developing world sell their services primary product
abroad as well as at home. have to make it
more sellable.
• The tertiary sector has less scope for
What are the
automation than the primary and wants and
secondary sectors, so workers cannot needs of the
be as easily replaced by machines. staff within your
company.
• Increased manufacturing processes in
the primary and secondary have given Does image
matter
the population more leisure time.
1.2.1b – Growth – Reasons for Growth and Change
Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

 The
LO2: Bereasons for the growth
able to prepare andSplash
a effective declineScreen
of and Navigation Screen
business activities are constantly changing.
They are particularly affected by:
What it is that a
• consumer wants and needs (influenced by business wants
trends, seasons, lifestyle and advertising) to achieve and
• the number of people employed in the how they go
about getting
business (whether activity relies on
that.
manpower or automation)
Who’s needs
• the value of the goods and services does your
provided (how expensive they are and primary product
whether they are considered good value have to make it
for money) more sellable.
What are the
• technological developments (demand
wants and
shifts as new gadgets are brought out and needs of the
render older versions obsolete). staff within your
 Q1 - How have each of the above factors company.
affected the primary, secondary and Does image
tertiary industries? matter
1.2.1b – Business Classification in developed and developing economies

Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

• TheBedata
LO2: ablebelow shows
to prepare countries
a effective whichScreen
Splash are currently classified
and Navigation as having developed or
Screen
developing economies.
Primary Sector as a % of the total Secondary Sector as a % of the Tertiary Sector as a % of the
economy total economy total economy
Developing Economies
Rwanda 33.3 13.9 52.9
Vietnam 21.5 40.7 37.7
Zimbabwe 20.3 25.1 54.6
Developed Economies
Bermuda 0.7 7.0 92.3
Japan 1.2 27.5 71.4
Norway 2.7 41.5 55.7

1. Which country has the lowest percentage of activity in the primary sector, but percentage
of business activity in the tertiary sector?
2. Which country has the smallest percentage difference primary business activity and
secondary business activity?
3. Using data froe to support your answer, is it true to say that countries whose tertiary sector
is larger than the other 2 sectors of are always developed economies?
4. What does the data in the table tell about the relationship between primary business
activity and developing and developed economies?
1.2.1b – Business Classification in developed economies – Case Study
Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

LO2: Be able to prepare

Bangladesh: The a effective
ImportanceSplash Screen and Navigation
of Economic Screen Over Time
Sectors
 In 1970, Bangladesh (formerly East Pakistan) had an economy

largely based on agriculture. A high proportion of the population

worked in farming either to produce crops for self-sufficiency or to
sell in local markets. Secondary manufacturing activities were
relatively unimportant and the tertiary sector was also small as
incomes were very low and people had little spare cash to spend
on ‘Services’.
 By 2011, Bangladesh had undergone significant changes.
Although 40% of the workforce still works in agriculture, primary
productions of goods such as Jute, Tobacco and food has fallen
in relative terms. Manufacturing industries such as food
processing and clothing, have expanded rapidly. Tertiary services
such as telecommunications, transport and finance now
contribute half of the total national output.
1.2.1b – Business Classification in developed economies – Case Study
Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

LO2:Economic sectorsa in
Be able to prepare Bangladesh
effective Splash – Worldand
Screen Bank Estimates
Navigation of %
Screen share of GDP
LO2: Be able to prepare a effective Splash Screen and Navigation Screen
Primary Secondary Tertiary
1970 53 15 32
2011 23 26 51

Activity 1.2.1
 Referring to the case study above and previous slide:
• Identify and explain 2 possible reasons why the relative importance of

primary output has fallen.

• Would workers who formerly worked agriculture find it hard to find work in

the secondary and tertiary industry? Explain your answer.

• What do you expect to happen to the reliance of tertiary industries if

incomes continue to rise in Bangladesh? Explain your answer.

 Homework – Research and explain the impact of the rise of the foreign
production factories in Bangladesh.
1.2.2 – Business Enterprise – Mixed Economy - Private and Public Sector

Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

 Nearly
LO2: Be able every World
to prepare country
a effective hasScreen
Splash a mixed
and economy
Navigation Screen
with:
What happens
 Private Sector – These are b are not owned by the to the profits
government. They will make decisions about what from the Public
Sector
they produce, how to go about producing it and what Why do certain
price they will charge for the goods. Most of these will Private Sector
aim to run at a profit, but there are likely to some businesses pay
less tax
form of government control in place to restrict What happens if
business practices. a government
financially
 Public Sector – these are government or state owned supports a
businesses where the government makes decisions private sector
business.
about what to produce and how much to charge
Why is it a big
customers. Some are provided free of charge such as government
health and education. The money for these comes concern when a
Private Business
from the public and the taxpayer. The objectives of goes bust.
Private and Public are often different.
1.2.2 – Business Enterprise – Mixed Economy - Private and Public Sector

Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

 Public
LO2: Be ableSector – Ina effective
to prepare many countries the and
Splash Screen government
Navigation Screen
LO2: Be able to prepare a effective Splash Screen and Navigation Screen
control the following important industries or activities:
What happens
• Health to the profits
from the Public
• Education
Sector
• Defence Why do certain
Private Sector
• Public Transport businesses pay
less tax
• Water and Electric Supplies
What happens if
 Activity – For each of key industries above, suggest 3 a government
financially
possible reasons why the government of a country supports a
might decide to control this function. In groups, one private sector
business.
groups for each industry, argue the benefits and
Why is it a big
disadvantages of private ownership of these services. government
 Homework – What is Communism and what does this concern when a
Private Business
mean for the Private Sector. What were the benefits? goes bust.
1.2.2 – Business Enterprise – Mixed Economy - Private and Public Sector

Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

 Mixed
LO2: Be ableEconomy
to prepare changes
a effective–Splash
In recent years,
Screen many Screen
and Navigation
Governments have changed the boundary between
Public and Private by selling some Public Sector What happens
to the profits
businesses to the Private sector. This is called from the Public
Privatisation. In many European and Asian countries Sector
services such as Water, Electricity and Public Transport Why do certain
Private Sector
have been sold off. businesses pay
 Why – It is often argued that the Private Sector less tax
businesses are more cost effective at running these What happens if
a government
services. This may be because they are profit goaled and financially
therefor cost effective. They also invest more money that supports a
private sector
the government can afford. Also competition can drive business.
down prices. Why is it a big
 The downside is that Private Sectors can cut the number government
concern when a
of workers to be more profitable and are less likely to Private Business
focus on social obligations like the environment or safety goes bust.
laws.
1.2.2 – Business Enterprise – Mixed Economy - Private and Public Sector

Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

 Activity
LO2: – prepare
Be able to Your government is considering
a effective Splash Privatising
Screen and Navigationthe
Screen
LO2: Be able to prepare a effective Splash Screen and Navigation Screen
Postal Services. You decide to write to the minister in
charge explaining your views on this and stating your What happens
to the profits
opinion. Your letter should contain the following points: from the Public
• An explanation of the difference between private and Sector
public sector businesses Why do certain
Private Sector
• The possible benefits of the postal service being in the businesses pay
private sector less tax
What happens if
• The possible disadvantages of the postal service being in
a government
the private sector financially
supports a
• Your recommendation to the minister on whether to
private sector
keep the postal service in the public sector or not. business.
 Homework – What if it was the other way around, what if Why is it a big
government
the government took ownership of the mobile phone concern when a
network and market, what impact would this have. Write Private Business
goes bust.
the same letter from this point of view.
1.2.2 – Revision Summary – Sectors Of Business
Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

LO2: Be able to prepare a effective Splash Screen and

Secondary – Navigation
e.g. Screen
Processing, Manufacturing,
Steel, Iron, Production Lines
Tertiary– e.g. Nanking,
Primary – e.g. Fishing, Retailing, Online,
Farming, Mining or Sales, Support.
Drilling for Raw
Materials By Activity

By Ownership

Private Sector – Owned by Public Sector – Owned by the

Private individual, PLC, Share Government or State e.g. Defence,
Owned, Independent Traders. Councils, Most Education
Revision Questions
Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

1. BeExplain
LO2: the differences
able to prepare between
a effective Splash Primary,
Screen and NavigationSecondary
Screen and
Tertiary sectors of industry. [6]
2. Which sector of Business Activity is often the most important
in the most developed economies? Explain one reason for this
[3]
3. Which sector of Business Activity is often the most important
in the least developed economies? Explain one reason for this
[3]
4. Identify ad explain one reason why the secondary sector of
business activity might become less important to a country’s
economy over time? [3]
5. Identify which sector of business activity the following
businesses are in. Copy out the list and place P, S, or T
alongside each one:
Bus Operator, Bus Manufacturer, Forestry business, Oil-
drilling business, Food Canning Business, Bank [6]
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Revision Questions
Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

6. Make a list of six other businesses, two each

LO2: Be able to prepare a effective Splash Screen and Navigation Screen

from Primary, Secondary and Tertiary sectors of

businesses. [6]
7. Explain what is meant by a Mixed Economy. [3]
8. What is meant by the Private Sector in mixed
economies? [3]
9. What is meant by the Public Sector in mixed
economies? [3]
10.Identify and explain two possible reasons why a
government might decide to keep the country’s
postal service in the public sector. [4]

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Exam Styled Questions - Paper 1
Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

1. Ade’s
LO2: Be ableEngineering
to prepare a Company (AEC)Screen
effective Splash makesand
parts for carsScreen
Navigation and trucks. These are
sold to car manufacturers in different countries. The parts include metal brake
components and rubber seals to fit around windows. AEC operates in country
X, which, until a few years ago, had an economy dominated by agriculture and
tourism. Over the last 20years the relative importance of the primary sector
has declined, to be successful AEC requires natural resources to make car parts
and the services provided by other businesses. Consumer incomes are rising
rapidly in Country X.
a) What is meant by “Primary Sector”? [2]
b) Identify 2 examples of services that a business such as AEC requires
[2]
c) Identify and explain 2 reasons why a business such as AEC could not be
successful without other firms providing natural resources [4]
d) Identify and explain 2 likely reasons why the relative importance of the
primary sector of Country X’s economy has declined? [6]
e) A government minister in Country X recently said “The secondary sector
of industry will always be more important than the tertiary sector to our
economy.” Do you agree with this view? Justify your answer. [6]

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Exam Styled Questions - Paper 1
Scenario Glossary 1.2.1a 1.2.1b 1.2.2 Exam Question

2. The
LO2: Government
Be able of Country
to prepare a effective Y owns
Splash Screenand
andcontrols
Navigationmany businesses. “The
Screen
Public sector always produces goods and services more efficiently than
private owned businesses,” a Government minister recently said. Other
ministers disagree and want privatise many state-owned businesses. The
private business sector in Country Y produces 55% of total output –
mainly in services such as transport, tourism and finance. The secondary
sector of industry produces 35% of total output.
a) What is meant by “Public sector?” [2]
b) Identify 2 industries in the secondary sector. [2]
c) Identify and explain 2 reason why the tertiary sector of industry is
becoming more important in economies. [4]
d) Identify and explain 2 possible reasons why some ministers want to
privatise some businesses in the public sector. [6]
e) Do you agree with the Government Minster’s view that: “The Public
Sector always produces goods and services more efficiently than
privately owned businesses?” Justify your answer. [6]