OTHER BUSINESS INFORMATION

SIZE OF BUSINESS Small business – under 50 employees Sole trader, partnership, local Medium business – 50 – 250 employees Private limited companies, national Large business – 250 or over Public limited companies, multinational

NATIONAL BUSINESS Most have household names Are easily recognised Have a large workforce Have branches in major towns Boots the Chemist River Island HMV

MULTI-NATIONAL BUSINESS Sell goods and services worldwide Operate in more than one country Have Headquarters in more than one country Ford MacDonalds IKEA Shell

SECTORS OF THE ECONOMY The UK has a mixed economy. This means that there is A PRIVATE SECTOR Businesses owned by private individuals A PUBLIC SECTOR Businesses owned by the government

PRIVATE SECTOR Sole Trader Partnership Private Limited Company Public Limited Company Co-operatives Franchises

PUBLIC SECTOR ALSO KNOWN AS PUBLIC CORPORATION Nationalised industries Public Services :- water, BBC Central Government – Defence, Hospitals Local Government – Roads, Housing etc

BUSINESS ACTIVITY Farmer Builder Bank Businesses involved with natural resources Primary Business involved in manufacturing Secondary Farmer Builder Tertiary Businesses providing a service Bank

THE CHAIN OF PRODUCTION Products often pass through the CHAIN OF PRODUCTION From Primary to Tertiary Farmer breeds and milks cow Milk is processed into cheese Restaurant or Shop sells cheese Primary Secondary Tertiary

What happens to the value of the product as it passes through the chain? It becomes more expensive Value is added

VALUE ADDED 15p 85p £1.30 Farmer’s milk sold to cheese processor Processed cheese sold to supermarket Block of cheese sold to customer 15p More Expensive 85p £1.30