Discuss the broad catagories of business activities. giving example?
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3 Classifying businesses by industry sector
Businesses also obviously differ by what they do. It is very common to distinguish businesses by industry or sector. An industry is a group of businesses that are related in terms of their main activity, for example manufacturing cars or selling groceries. Smaller industries (for example, the car manufacturing industry) can be grouped into larger industry sectors (for example, the manufacturing sector in general). An individual business is classified as belonging to a certain industry on the basis of its main activity. So, for example, a car manufacturing business may also have a small financial services arm (to provide finance to customers to help them buy a new car) but that financial services arm would probably only be about 10% of the business’s overall activity, whereas car manufacturing might be 80%. Therefore, this business would be classified as belonging to the car manufacturing industry, and not financial services.
Economists often distinguish three broad sectors of the economy:
The primary sector involves extracting and harvesting natural products from the earth (for example, agriculture, fishing and mining).The secondary sector consists of processing (for example, the processing of food stuffs produced by agriculture), manufacturing and construction. That is to say, the secondary sector takes the products from the primary sector and does something more with them.The tertiary sector provides services, such as retail services, entertainment or financial services.
Some people also distinguish a fourth sector, which is made up of intellectual activities, such as education.
Businesses also obviously differ by what they do. It is very common to distinguish businesses by industry or sector. An industry is a group of businesses that are related in terms of their main activity, for example manufacturing cars or selling groceries. Smaller industries (for example, the car manufacturing industry) can be grouped into larger industry sectors (for example, the manufacturing sector in general). An individual business is classified as belonging to a certain industry on the basis of its main activity. So, for example, a car manufacturing business may also have a small financial services arm (to provide finance to customers to help them buy a new car) but that financial services arm would probably only be about 10% of the business’s overall activity, whereas car manufacturing might be 80%. Therefore, this business would be classified as belonging to the car manufacturing industry, and not financial services.
Economists often distinguish three broad sectors of the economy:
The primary sector involves extracting and harvesting natural products from the earth (for example, agriculture, fishing and mining).The secondary sector consists of processing (for example, the processing of food stuffs produced by agriculture), manufacturing and construction. That is to say, the secondary sector takes the products from the primary sector and does something more with them.The tertiary sector provides services, such as retail services, entertainment or financial services.
Some people also distinguish a fourth sector, which is made up of intellectual activities, such as education.
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