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Chapter 2 - Classification of Businesses

The document classifies businesses into three sectors: primary (natural resource extraction), secondary (manufacturing and processing), and tertiary (service provision). It discusses industrialization as the shift from primary to secondary sector importance, and de-industrialization as the shift from secondary to tertiary sector importance. Additionally, it distinguishes between private sector (owned by individuals and companies) and public sector (controlled by the government).

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MUHAMMAD JILAN
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3 views

Chapter 2 - Classification of Businesses

The document classifies businesses into three sectors: primary (natural resource extraction), secondary (manufacturing and processing), and tertiary (service provision). It discusses industrialization as the shift from primary to secondary sector importance, and de-industrialization as the shift from secondary to tertiary sector importance. Additionally, it distinguishes between private sector (owned by individuals and companies) and public sector (controlled by the government).

Uploaded by

MUHAMMAD JILAN
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Classification of Businesses

Primary Sector

Meaning/Definition:

Businesses that use the natural


resources of the earth to produce
raw materials used by other
businesses.
Secondary Sector Examples: manufacturing
processing.
& food

Meaning/Definition:
Firms that process and manufacture goods
from natural resources
OR
Manufacture goods using the raw materials
provided by the primary sector
OR
Uses manufacturing to transform the raw
materials generated in the primary sector into a
product
Tertiary Sector
Meaning/Definition:

business or industry which provides


OR sells services to consumers OR
other sectors of the economy

Examples: Healthcare,
Banking, Restaurant,
Transport, etc.
Industrialisation
Industrialisation: The growing importance of secondary sector business activity and
the reduced importance of primary sector business activity. The emerging economies of
both China and India are good examples.

Secondary sector Primary sector


De-industrialisation
The growing importance of tertiary sector and the reduced importance of the
secondary sector. The UK and the USA are good examples of this type of
economic activity.

Tertiary sector Secondary sector


Private sector
● The part of the economy that is owned and controlled by individuals and
companies for profit.
Public sector
● The part of the economy that is controlled by the state or government
Classification of Businesses

Businesses

Based on Based on
Activity Ownership

Private Public
Primary Secondary Tertiary
sector sector

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