The Different Types of Business Activity
2.0 The Different Types of Business Activity
By the end of this chapter, you should be able to:
• Classify entities into primary, secondary and tertiary sectors
• Explain features of public and private business
• Understand the different forms of merger and take-over
• Compare methods that measures the size of a business
Levels of Economic Activity
Stage Business Involved
Primary Woodcutter Secondary Furniture Makers Tertiary Retailer Example – Stages in the production and sale of a wooden desk
2.1 The Stage of Production
You may have a rough idea on how a wooden desk is processed into a final product for sale, but do you know that the production is divided into a few stages?
Primary stage – Extracts and uses the natural resources of the earth, Such as farming, fishing, forestry.
Secondary stage – Manufactures goods using the raw materials provided by the primary sector, Such as building, aircraft making, computer assembly and baking.
Tertiary stage – Provides services to consumers and the other sectors of industry, Such as transport, banking, insurance, hotels and hairdressing.
Which sector of industry do you think is important in Malaysia? It also depends on what is meant by “important” to the phases of growth in the country – developing or well developed.
Do you know?
De-industrialization occurs when there is a decline in the importance of secondary, manufacturing sector of industry in a counter. This happens when the tertiary/service sector become the “important” contributor to growth of the country at that point.
2.2 Public and Private Sectors of Industry
3 different types of economic system which are used by countries to manage their resources as efficiently as possible: 1. Free market economy. 2. Command or planned economy. 3. Mixed economy.
Free market economy:
In this economy, all resources are owned privately. That means, there is no government control
By the end of this chapter, you should be able to:
• Classify entities into primary, secondary and tertiary sectors
• Explain features of public and private business
• Understand the different forms of merger and take-over
• Compare methods that measures the size of a business
Levels of Economic Activity
Stage Business Involved
Primary Woodcutter Secondary Furniture Makers Tertiary Retailer Example – Stages in the production and sale of a wooden desk
2.1 The Stage of Production
You may have a rough idea on how a wooden desk is processed into a final product for sale, but do you know that the production is divided into a few stages?
Primary stage – Extracts and uses the natural resources of the earth, Such as farming, fishing, forestry.
Secondary stage – Manufactures goods using the raw materials provided by the primary sector, Such as building, aircraft making, computer assembly and baking.
Tertiary stage – Provides services to consumers and the other sectors of industry, Such as transport, banking, insurance, hotels and hairdressing.
Which sector of industry do you think is important in Malaysia? It also depends on what is meant by “important” to the phases of growth in the country – developing or well developed.
Do you know?
De-industrialization occurs when there is a decline in the importance of secondary, manufacturing sector of industry in a counter. This happens when the tertiary/service sector become the “important” contributor to growth of the country at that point.
2.2 Public and Private Sectors of Industry
3 different types of economic system which are used by countries to manage their resources as efficiently as possible: 1. Free market economy. 2. Command or planned economy. 3. Mixed economy.
Free market economy:
In this economy, all resources are owned privately. That means, there is no government control