Ch. 2: Classification of Business

Front

The primary stage of production is concerned with

Back

growing crops and extracting the earth's natural resources

Front

The tertiary sector of industry is the most important sector in high income countries because

Back

consumers' incomes are high so they spend more on services

Front

Which following businesses would you classify as being in the secondary sector of industry? Options: An oil exploration company, A family run farm business, A taxi operating business, A shoe manufacturer

Back

A shoe manufacturer

Front

Which of the following is the best definition of privatisation? Options: When private limited companies convert into public companies, When a partnership converts into a private limited company, When a state owned industry is sold to the private sector, When a private sector firm is purchased by the government

Back

When a state owned industry is sold to the private sector

Front

In a mixed economy which of these industries is most likely to be controlled by the government? Hotels and restaurants, Health and public transport, Building and taxi services, Food shops and farming

Back

Health and public transport

Front

Which one of the following is a disadvantage of privatisation? Options: Jobs might be lost as private owners try to cut costs, The government raises money which could help to reduce taxes, Less competition than when the industry was a monopoly, Politicians will now influence business decisions

Back

Jobs might be lost as private owners try to cut costs

Front

Changes in importance of different sectors of industry in a country is likely to be caused by: the exhaustion of the country's copper mines, an increase in the country's population, a long period of no increases in family incomes, government grants available to businesses in all sectors.

Back

the exhaustion of the country's copper mines