Classification of Businesses

Flashcards covering the classification of businesses into primary, secondary, and tertiary sectors, including examples and changes over time.

Primary Sector

Involves extracting raw materials from the earth, such as agriculture, fishing, forestry, and mining.

Secondary Sector

Involves the conversion of raw materials into finished and semi-finished goods; includes manufacturing, processing, and construction.

Tertiary Sector

The provision of a wide variety of services, including commercial, financial, household, leisure, professional, and transport services.

Agriculture

Farming activities involving food production, flowers, and tropical fish – a primary sector activity.

Fishing

Netting, trapping, and trawling for fish – primary sector activity, with China as the world's largest fish producer.

Forestry

Providing timber, protecting the natural environment, providing public access and managing areas for wildlife – a primary sector activity.

Mining & Quarrying

Extraction of raw materials such as coal, iron, and salt – a primary sector activity.

Manufacturing

Conversion of raw materials into finished goods – a secondary sector activity.

Processing

The act of converting raw materials into semi-finished or finished goods; falls within the secondary sector.

Construction

The building of infrastructure and buildings, classified under the secondary sector.

Commercial Services

Services like freight delivery, debt collection, printing, and employment agencies – part of the tertiary sector.

Financial Services

Banking, insurance, investment advice, and pensions – services within the tertiary sector.

Household Services

Plumbing, decorating, gardening, and house maintenance – part of the tertiary sector.

Leisure Services

Television, tourism, hotels, and libraries – services included in the tertiary sector.

Professional Services

Accountancy, legal advice, and medical care – professional services within the tertiary sector.

Transport Services

Train, taxi, bus, and air services – part of the tertiary sector.

Interdependence

The reliance of businesses in all three sectors on each other.

De-industrialisation

Decline in manufacturing; expansion of the tertiary sector at the expense of agriculture and manufacturing.

Competitive Edge

A factor that allows a company to produce goods or services better or more cheaply than its rivals.

Raw Materials

Basic substances used in primary sector activities, extracted from the earth.

Finished Goods

Products ready for consumption, result of secondary sector activities.

Semi-Finished Goods

Goods produced for other businesses, used for production of finished goods (secondary sector).

Andalucía

The largest olive growing region in the world, located in southern Spain.

Hisense

A large Chinese manufacturer of white goods and electronic products.

Product Design

A service provided by companies like Hisense in the tertiary sector.

Information Technology Services

A service provided by companies like Hisense in the tertiary sector.

Property Management

A service provided by companies like Hisense in the tertiary sector.

Labour Costs

Expenses related to employing workers; often reduced by investing in harvesting machinery.

Market Share

The percentage of a market that a specific company or product controls.

State-Owned Enterprise

A business or company that is owned and operated by the government.

White Goods

Large household appliances such as refrigerators and washing machines.

Public Sector

The part of the economy concerned with providing basic government services.

Technological Advances

Improvements and developments in technology that can lead to reduced employment in manufacturing.

Olive Oil

A product of processing olives; an example of secondary sector activity.

Harvesting Machinery

Equipment used to gather crops; can reduce labor costs in agriculture.

Cordoba

A location where the Casillas family grow olives on their farm.

China

A country well-known for its manufacturing capabilities.

Spain

A country where the number of people employed in agriculture is falling.

Brazil

A country with fierce competition in the production of goods.

India

A country with fierce competition in the production of goods.

Competitive

Being able to offer better value, service and quality compared to rival businesses.

Labour

Human effort directed at producing goods and services.

Technology

The application of scientific knowledge for practical purposes, especially in industry.

Capital

Goods used to produce other goods, such as machinery.

Investment

The action or process of investing money for profit or material result.

Import

Goods or services brought into one country from another.

Export

Goods or services sent from one country to another for sale.

Wage

A fixed regular payment earned for work or services, typically paid on a daily or weekly basis.

Salary

A fixed regular payment, typically monthly, earned for professional or office work.

Unemployment

The state of being without a job.

Production

The action of making or manufacturing from components or raw materials.

Productivity

The effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input.

Revenue

Income, especially when of a company or organization, and of a substantial nature.

Profit

A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.

Loss

The state or fact of having lost something or someone.

Economy

The wealth and resources of a country or region, especially in terms of the production and consumption of goods and services.

Market

A place where buyers and sellers meet to exchange goods and services.

Demand

The quantity of a product or service desired by consumers.

Supply

The quantity of a product or service that producers are willing to offer for sale.

Price

The amount of money asked for when something is sold.

Competition

Rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume.

Innovation

A new method, idea, or product.