Y8 Business Studies - C2 Types of Business Activity

What is the primary sector of business activity?

• Service sector

• Natural resources extraction sector

• Manufacturing sector

• Retail sector

Which sector earns the most money?

• Primary sector

• Quaternary sector

• Secondary sector

• Tertiary sector

What is a characteristic of a free market economy?

• No government intervention

• All businesses owned by the public sector

• Fixed wages for everyone

• Total government control

What is one disadvantage of a command economy?

• Eliminates waste from competition

• High motivation for workers

• High consumer choice

• Little motivation for workers

What does privatization involve?

• Government buying businesses

• Government selling national businesses

• Government controlling all businesses

• Government providing subsidies

Which of the following is NOT a way to measure the size of a business?

• Market share

• Value of sales

• Value of output

• Number of employees

What is internal growth in a business?

• Growth through government investment

• Organic growth funded by owners' capital

• Growth through taking over another business

• Growth through mergers

What is a horizontal merger?

• Merging with government-owned businesses

• Merging with businesses at different levels

• Merging with businesses in the same industry

• Merging with businesses in unrelated sectors

What is one reason businesses might stay small?

• High market demand

• Desire for personal service

• Access to large capital

• Government regulations

What is the role of the public sector?

• To earn profit for individuals

• To provide essential services controlled by the state

• To regulate private sector activities

• To compete with private businesses