Business Ownership and Sectors of the economy Unit 1 – Business Environment

Public or Private Sector  Vast majority of businesses operate in the private sector.  This means they are owned by individuals or other businesses.  Privately financed

Public Sector  Organisations that are financed and controlled by local or central government.  These include:  Care facilities such as the NHS  Publicly funded corporations such as the BBC.  Nationalised industries or organisations (formerly utility companies and some heavy industry)

Not for profit/voluntary organisations  Most businesses want to make profit. However, some are set up purely to provide a service.  Often run by volunteers  Often local – youth clubs etc.  Usually socially orientated.

Sectors of the Economy  The could be said to be 4 sectors of the economy.  Traditionally there were 3:  Primary  Secondary  Tertiary  We can now begin to think of a fourth -  Quaternary

Primary Sector  The extraction of or harvesting of raw materials  Agriculture  Mining  Drilling for oil  Quarrying  Fishing

Secondary  The processing section of the economy. This is where primary products are processed into manufactured goods.  Car factories  Food processing factories  Oil refineries

Tertiary  This is the service and retail sector of the economy. The retailing of the manufactured goods.  Banking  Shops  Petrol Station

Quaternary  This is the knowledge based sector. It also argued that this is where culture and R&D takes place.  Can be considered an offshoot of the tertiary sector.  Universities  Think tanks  Information generation and retrieval

Task  Please complete the Range and Sector worksheet.