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Classification of Businesses - Coggle Diagram
Classification of Businesses
Sectors
Definition
Large group of economies separated by the production or kind of work (product or service)
Types
Primary
Extracts natural resources, land or sea, for others to use.
Tertiary
Delivers services to business/individuals costumers.
Secondary
Transforms raw materials into a usable/finishedd good.
Impact in countries
The size of each sector may depend on the growth/development of the country, individual or business. The country's aim is to at least develop 1 business in 1 sector to change the structure of economy boosting the country's revenue and long-term production.
Market
Definiton
Where costumers/sellers come to perform together busicess activities of different types.
Types
Market Economy
Goverment has no influence, buyers and sellers determine prices and trading decitions themselves.
Mixed economy
Market where goverment has a role on (influences on law and rules- ban for certain products, tac two limited supplies, demand, supplyng goods/services themselves for an equal chance of using it).
Public/private organizations in a mixed economy
The majority is privately owned while goverment usually runs education, healthcare and military.
What happens if a important private organization for the goverment starts to fail for several reasons?
Nationalism: the goverment takes over the private organization for several reasons (normally the goverment just takes it)
Examples
Electronic: Online place that allows interaction (Ebay).
Geographic: Town, region, country referred as marker (Middle East).
Physical: Actually go, see and buy (supermarket).
Black: Illegal/uncommon products only available there (drugs, weapons).
Sectors (2)
Private
Definition
Business founded and run by private organizations/individuals. Because there are shareholders (people who own all or part of the business) , they are often profit diven (aim twp larger profits).
Examples
Sole trader, private/public limited company (LTD/PLC), charity, parternship, social enterprise.
Public
Definition
Organization/business founded and run by the country's government. Use of the taxation to found it.
Examples
Train system, police, healthcare, education, military
Aims
Depend mainly due to the business structure.
Examples
PLC (public limited companies) have shareholds who want investment back so caompanies strike to make larger profits.
Charity/non-profit try to invest in projects that help acheive their aim. For example; Cruz Blanca, its aim is to recolect money and help children with education, needs and make them happy.
Public entities don't need to create profit because their aim is to satisfy people's needs such. For example; healthcare (public hospitals)- which is founded with goverment taxation.