Unit 1.2 Classification of Businesses (IGCSE)

What is business activity?

• The process of producing goods and services

• The buying and selling of products

• The creation of wealth and jobs

• All of the above

Which of the following is a primary sector activity?

• Manufacturing cars

• Providing healthcare services

• Mining coal

• Retailing clothing

A business that processes raw materials into finished goods is in the:

• Primary sector

• Secondary sector

• Tertiary sector

• None of the above

An example of a tertiary sector business is:

• A farm

• A factory

• A restaurant

• A mine

A business that is owned and controlled by individuals is a:

• Public sector business

• Private sector business

• Non-profit organization

• Government agency

Public sector businesses are:

• Profit-oriented

• Owned by the government

• Owned by individuals

• Small in size

Which of the following is an example of a public sector business?

• Apple

• Coca-Cola

• A local school

• Amazon

The role of the public sector in the economy is to:

• Generate profit

• Provide essential services

• Compete with private businesses

• All of the above

Private sector businesses play a crucial role in the economy by:

• Creating jobs

• Innovating

• Generating wealth

• All of the above

The public and private sectors often:

• Compete with each other

• Cooperate with each other

• Do not interact

• Only compete