Business is largely classified into 3 different sectors which are Primary, Secondary and Tertiary
Primary Sector: deals with the extraction of raw materials from the land or sea to be used by other industries. e.g farming, mining, fishing, oil extraction.
Secondary Sector: this deals with the transformation of raw material into finished goods. e.g textile factory, metal factories etc.
Tertiary Sector: they provides service to consumers and other sectors of the industry e.g. Restaurants, car showroom, travel agent.
Private & Public Sector
A market is where a seller and buyer come together to perform business activity.
Types of market
- Electronic market: This is an online setting that allows buyers and sellers to interact e.g eBay, Amazon
- Geographic market: this is based on a specific location which may be a town, city or country.
- Physical market: this is where customers go to buy needed goods. e.g a shopping mall
- Black market: this is a gathering where contraband items are sold.
A market economy is an economic structure where the buyers and sellers determine the price and trading decisions whereas a mixed economy is an economic structure where the government, buyers and sellers have a influence on price and trading decisions.
Often the government will always influence the market by creating rules and laws that structure the way in which buyers and sellers meet and interact. the government can do this by:
- imposing a ban on certain products
- imposing taxes on certain goods or services to restrict its demand and supply
- supplying them itself so that everyone can have equal chance of using it.
The private sector is formed of businesses that are run by private individuals or groups. they often have shareholders who want to generate large profits. Examples of private enterprise are sole trader, private limited companies (LTD), public limited companies (PLC), partnership, cooperative societies etc
These are organisations run and funded by the government of the country. the government uses taxes to help fund these services to make them cheaper so that everyone can have access to it. e.g education, security (police, army, navy), rail services etc.