classification of businesses

• primary sector are firms whose business activity involves the extraction of natural resources from the enviroment
• secondary sector are firms that process and manufacture goods and services from raw materials
• tertiary sector are firms that provide services to other firms and to the public
• • chain of production is the production and supply of goods to the final customer involves activities from primary , secondary and tertiary sector businesses
• mixed economy where resources are owned and controlled by both the private and the public sector
• private sector is the part of the economy that is owned and controlled by both individuals and companies for profit
• public sector the part is of the economy that is controlled by the government
• • advantages of privatization : increased efficiency, increased competition, increased choice, increased investment
• • disadvantages of privatization: can lead to monopolies, can lead to poor quality, can lead to job losses
• industrialization is when the secondary sector is becaming the primary sector, and the tertiary sector is becoming the secondary sector
• de-industrialization is when the tertiary sector is becoming more important than the secondary sector