Businesses

• A developing country is a country whose industry and

  economy is still developing and whose citizens have low

  average incomes and standard of living
• A developed country is a country that is industrialized and technological, where average incomes and standard of living are high.
• An informal business is a business that is not taxed and is

  not regulated by the government.
• A formal business is a business that pays tax, is monitored

  and regulated by the government.
• A trading business is a business that makes money from

  trading, or selling, goods.
• A manufacturing business is a business that makes money

  from manufacturing or making goods
• A service business is a business that makes money from

  selling services.
• There are several advantages and disadvantages to owning

  a formal or an informal business. The main differences

  are that formal businesses are more expensive to run and

  pay tax, while informal businesses are cheaper to run and

  don't pay tax.
• Formal and informal sectors are both consumers and

  producers.
• Natural disasters have a serious effect on the economy as

  they destroy businesses, leaving them without income.
• Health epidemics also have a serious effect on the

  economy. When people are sick or die, they can no longer

  work and their skills are lost. This costs businesses money

  and causes households to lose income.