#Business #EconomicSector #savemyexams
The Three Main Business Sectors
Businesses can be classified according to the type of business sector in which they operate.
Classification into these sectors is a simplified way of categorising industries.
* It helps to provide a means of making comparisons between firms in the same sector.
However, it does not capture the full complexity of the business world.
* Many businesses operate across multiple sectors or may not fit neatly into a single category.
Farming in the primary sector, manufacturing in the secondary sector and hairdressing in the service sector
The primary sector is concerned with the extraction of raw materials from land, sea or air.
* Examples include farming, mining or fishing.
The secondary sector is concerned with the processing of raw materials and the manufacture of goods.
* Examples include oil refinement and vehicle manufacture.
The tertiary sector is concerned with the provision of a wide range services for consumers and other businesses.
* Examples include leisure, banking or hospitality businesses.
The chain of production
The chain of production is the series of steps taken to turn raw materials into finished products that can be marketed and sold.
The chain of production in the manufacture of cosmetics and computers