Page 29 - Cambridge IGCSE Business Studies
P. 29
2: Classification of businesses
Revision checklist Exam practice questions
● Businesses in every country 1 Paul owns a fi shing boat with his father John. They have been in business
can be classified, according to together for over 15 years. Paul is thinking of investing money in his
their activities, into primary, friend’s fi sh canning company – Pisces Products (PP).
secondary and tertiary.
PP sells most of its canned products to local supermarkets, but
● The primary, secondary and
about 10% of the output is sold to public sector organisations such as
tertiary sector businesses are
schools and hospitals.
linked because one provides
the resources required
a Identify two forms of business organisation (other than
by another.
supermarkets and fi sh canning) found in the private sector. [2]
● The classification of
b What is meant by ‘public sector’? [2]
businesses by activity is oft en
used to classify the economies c Explain how the decisions about ‘what to produce’ and ‘how to
of countries into developing
produce’ are made in the private sector of a mixed economy. [4]
or developed.
d Identify and explain two differences between primary sector and
● Most economies have a
private sector and a public secondary sector business activity. Use the information in the
sector. question to help with your explanation. [6]
e Do you think Paul should invest in his friend’s fi sh canning
company? Justify your answer. [6]
2 Consider the following data for two countries X and Y.
27
Sectors Country X – size Country Y – size
of business activity of business activity
by sector by sector
Primary 61% 3%
Secondary 24% 32%
Tertiary 15% 56%
Country X Country Y
Size of private sector 28 49
Size of public sector 72 51
a Country X has a working population of 40 million. How many
people work in the tertiary sector? [2]
b What is meant by primary sector? [2]
c Identify and explain two differences between the public sector
and private sector. [4]
d Using data from the tables, identify and explain two differences
between Country X and Country Y. [6]
e The people who live in Country Y are likely to have a higher
income and better standard of living than people who live in
Country X. Do you agree? Justify your answer. [6]
Total available marks 40
