Y10 Wk 2 Classification of Businesses

Lesson 1: Classification of Businesses

Opportunity Cost

• Definition: The cost of forgoing the next best alternative when making a decision.

Business Classification

• Objective: Understand the basis of business classification.

Primary Sector

• Nature: Involves extraction and harvesting of natural resources.
• Examples: Agriculture, forestry, fishing, mining, quarrying, and hunting.
• Businesses: Farms, fisheries, mining companies, logging companies.

Secondary Sector

• Nature: Transforms raw materials into finished products via manufacturing and construction.
• Examples: Manufacturing, construction, utilities.
• Businesses: Automobile manufacturing, steel production, construction companies, electricity generation.

Tertiary Sector

• Nature: Provides services rather than goods.
• Examples: Retail, healthcare, education, finance, entertainment, hospitality, transportation.
• Businesses: Retail stores, hospitals, banks, restaurants, schools, airlines.

Sector Interconnection

• Each sector plays a distinct role and is interconnected.
• Primary provides raw materials to Secondary.
• Secondary manufactures goods for Tertiary.
• Tertiary supports all sectors with services.
• Economic Evolution: Developed countries have larger Tertiary and Quaternary sectors, while developing countries depend more on Primary and Secondary sectors.

Lesson 2: Classification of Business Enterprises

Task: Name the 3 Sectors of Industry

Changing Importance of Business Classification

• Objective: Understand reasons for changing importance and classification between private and public sectors in mixed economies.

Industrialisation

• Definition: The process of developing industries in a country or region.

De-Industrialisation

• Definition: The reduction of industrial activity or capacity in a country or region.

Lesson 3: Private vs Public Sector Classification

Private Sector

• Ownership: Owned by individuals or private entities.
• Objective: Profit generation.
• Decision-Making: Based on profit motives and market dynamics.
• Funding: Private investments, loans, revenue from sales, possibly shares or venture capital.

Public Sector

• Ownership: Government-owned.
• Objective: Provide public services, not always profit-focused.
• Decision-Making: Government regulations and public policy.
• Funding: Government budgets, taxes, public revenue, subsidies.

Economic Systems

• Mixed Economy: Involves both private and public sector enterprises.

Tasks

• Complete spider diagram and case studies to solidify understanding.