UNIT 1 – BUSINESS ACTIVITY Chapter 2 – Types of Business Activity

WHAT YOU WILL LEARN….. The different levels of business activity pp rimary, secondary, tertiary How private & public sectors of industry are organised How do businesses expand mm erger & take-over How to measure and compare business size

KEY TERMS Industry mm anufacturing of a good or service within a category tt he organized action of making of goods and services for sale Economy tt he system of production and management of material wealth  "economic growth"; "aspects of social, political, and economical life

LEVELS OF BUSINESS ACTIVITY Primary Secondary Tertiary

TYPES OF COUNTRIES Developed Countries Developing Countries

SECTORS OF INDUSTRY

TYPES OF ECONOMY Types of Economy Free Market Command/Planned Mixed

(FREE) MARKET ECONOMIES (Free) Market Economies Resources Privately Owned Produce Goods  Profit Demand & Supply

(FREE) MARKET ECONOMIES

COMMAND/PLANNED ECONOMIES Command/ Planned Economies Resources Govt Owned State Owns & Controls State  What & How Much Consumers  Little Choice Workers  Ordered

COMMAND/PLANNED ECONOMIES

MIXED ECONOMIES Mixed Economies (Free) Market Economies Command/ Planned Economies

GOVERNMENT CONTROLS

EFFICIENCY It is the degree to which something is done well or without wasted energy or effort

PRIVATISATION When governments sell of businesses they previously owned to new owners in the private sector

PRIVATIZATION New owners  Profit Motive Increase Competition Government needs cash Decision-Making Changes Sale

Loss-Making services closed Job losses Risk of Monopoly Benefits