business sectors

grade 10 business studies chapter 6 term 1

primary sector

businesses extract raw materials and natul resources such as live stock, fish, coal and gold

• agriculture

• forestry

• mining

secondary sector

buinesses transform raw materials fome primart sector into finised products

• construction

• factories

• manuafactoring

tertiay sector

busineeses that ofer services to consumers

• financing

• hospitality

• transport

the relationship between priamry,seconday and tertiary secotor

the sectors work together to create a economic train of production.

meaning of formal sector

businesess in the formal sectorsa are registered and pay taxes.theses businesses are requires to register with SARS to be able to generate profit

meaning of informal sector

are not registers to SARS and do not pay taxes

importance of formal sector

• activities are included in th GDP

• pay tax on profts

• provide employment

• gain skills

importance of the informal sector

• encourages self employment

• gain work experience

• supplemt thier income

• easy to enter

public sector

• owened and managed by the goverment

private sector

• owned by sole traders

• formal and informal sector

purpose of pblic sector

• provideds public goods and services

• improves standard of living

• provides infosrtucture

purpise ofprivate sector

• offers a large variety of goods and services

• gives back to the commnity

• provides jobs