2.  1. Primary ->resource extraction: staples that are needed to give economy largest part of their income. Eg fish, lumber, water, wheat, minerals  2. Secondary ->manufacturing: steel mills, paper mills, automobile plants  3. Tertiary -> provision of services: wholesale and retail sales outlets, medical clinics, legal offices, schools  4. Quaternary -> provision of highly specialized and expensive technology and support services: research & dev, IT

3.  Firms: people organize their funds and abilities into units  Designed to get max profits by providing goods and services for which customers are willing and able to pay for

4.  A business owned and operated by one person. They make all business decisions.

5.  A firm owned by two or more people and bound by the terms of legal document called partnership agreement.  Governs business conduct of all partners and outlines rights and obligations: 2 kinds  General: all partners take part in management and losses  Limited: (has at least one general) only responsible for their initial investments worth for debt repayment, don’t take part in management

6.  Type of firm legally recognized by its own right.  Created by govt approval, assets divided into shares  Can be public or private  Shares can be traded  Private: transfer of sale must be approved by board of directors  Public: freely traded  Shareholders are owners of corporation

7.  Common shares: shareholder has voting rights  Preferred shares: shareholder has preferential position when looking at assets but no voting rights.  Proxy: document signed by shareholder appointing someone else to vote on their behalf

8.  Firm owned equally by its various members  Members have a common relationship/ economic goal  Retail  Marketing  Financial  Service

10.  Each member is entitled to single vote  Majority vote is required to make decision  Day to day operations members elect a board of directors

11.  owned by government (munic, prov, or federal)a  Provides services that private sector usually would not b/c profits generated are low  Prov/Mun: LCBO, housing corporations, OC TRANSPO  Federal govt making efforts to privatize most holdings  Eg hydro one, petrocan, air Canada

12.  Registered with govt, cant make profit  Activities are income-tax exempt  Raise money to cover operations costs  Eg Canadian Cancer Society  Red Cross  Food Banks