Page 24 - Cambridge IGCSE Business Studies

Cambridge IGCSE Business Studies Section 1 Understanding business activity

These businesses provide services such as retailing, fi nance, entertainment
TOP TIP and transport.
You must be able to define and
give examples of businesses
found in each sector. Calculations
are also quite common on
this topic in examinations, for
example calculating the number
of employees in a sector.

Fast food at a cinema

ACTIVITY 2.3

Make a list of the tertiary sector business activities found in your country, including the services they provide.

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How the sectors depend on each other
KEY TERM Although an economy can be divided into primary, secondary and tertiary sectors,

the different sectors of business activity are often dependent upon each other. Th is
Chain of production: the is known as a chain of production. Let’s look at oil, for example. Oil is extracted
production and supply of goods
from underground and is a business activity of the primary sector. Once it has been
to the final consumer involves

activities from primary, secondary extracted, oil needs to be refined to produce other products such as petrol or gas.

and tertiary sector businesses. This is a process carried out by businesses in the secondary sector. Finally, tertiary
sector activity is needed to bring the petrol to your nearest petrol or gas station, for
sale to the fi nal consumer.

Figure 2.1 Primary, secondary and tertiary sectors