1. OTHER BUSINESS INFORMATION

2. 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

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

4. 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

5. 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

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

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

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

9. 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

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

11. 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