Why is the tertiary sector important in the economy?
It provides services that support both businesses and consumers
Which sector involves raw material extraction?
Primary sector
Name one challenge faced by the secondary sector.
Load shedding / high production costs / labour strikes.
Name the two main components of the business environment.
Micro (internal) environment and market (external) environment.
Provide an example of a tertiary sector business.
Retail store, bank, or transport company
What process happens in the secondary sector?
Raw materials are changed into finished or semi-finished products.
What is the main goal of businesses in any sector?
To produce goods or provide services to make a profit.
Which sector usually grows as a country becomes more developed?
Tertiary sector.
What are the three main business sectors?
Primary, Secondary, and Tertiary
What is a sole proprietorship?
A business owned and operated by one individual.
What is the business environment?
It's the combination of internal and external factors that influence a business's operations.
What is the role of the secondary sector?
Manufacturing and processing raw materials into finished goods
Name one advantage of a partnership.
Shared responsibility and combined skills/resources.
List one disadvantage of a public company.
Subject to strict regulations and must disclose financial information publicly.
Give an example of a factor in the macro environment.
Economic conditions, such as inflation or interest rates.
Why might a business choose to operate as a cooperative?
To benefit from shared ownership and democratic decision-making among members.
What does SWOT stand for?
Strengths, Weaknesses, Opportunities, Threats.
Why is it important for businesses to analyze their environment?
To identify opportunities and threats, and to adapt strategies accordingly.
What do all businesses in the primary sector have in common?
They use natural resources directly from the earth.
What is a private company (Pty) Ltd?
A company owned by shareholders, with limited liability and shares not available to the public.