• • • •
Farming Agriculture Mining Fuel extraction
Primary sector
• • • • • •
Manufacturing Engineering Food and drink Textiles Clothing Construction
Secondary sector
• • • • • • • •
Financial services Transport Retailing Public services Post Telecommunications Education Health services
Chain of production
How business is organised
Interdependence
Tertiary sector
Figure 2.4 How business is organised
Key terms Ch i off production Chain d – the stages of production a product goes through from raw materials to finally being sold to the customer Primary sector – the sector of industry that produces unrefined raw materials Secondary sector – the sector of industry that produces finished or part-finished goods Tertiary sector – the sector of industry that provides services to businesses and individuals
Summary 1
Businesses owned by private individuals or groups are in the private sector.
2
Businesses owned by the state are in the public sector.
3
All products go through many stages of production.
4
The different stages of production of a product are linked in a ‘chain of production’.
5
Businesses may be in the primary sector, secondary sector or tertiary sector, depending on where they are in the chain of production.
Classification of business 19