2. • Business Activity is any kind of activity that
results in the provision of goods and services that
humans want
3. Goods and Services
• A good is a physical product e.g. a car, washing machine
• A service is a non physical product e.g. a haircut, a joiner
• Goods and Services can be durable (long lasting) or non
durable (used up quickly)
4. All businesses make use of 4 Factors of
Production:
• Land – the natural resources used by a business
– oil, water, land, sunshine
• Labour – the physical and mental effort of the
workforce
• Capital – the financial and man made resources
used to produce the good or service of the
business
• Enterprise – the human effort of the
entrepreneur/leaders who take the risks and
combines the other factors of production
5. 4 Sectors of Activity/Industry
• Primary (Extractive) Industries –which involve
mining, collecting or growing raw materials eg
fishing, mining, farming
• Secondary (Manufacturing) Industries –which
transform primary products into manufactured
goods
• Tertiary (Service) Industries – which provide a
service eg retailers, banks
• Quarternary – Support indusries. For example:
Research and development, IT Services
6. Chain of Production
• Primary, Secondary and Tertiary businesses are
linked by a Chain of Production
• Production starts with raw materials and ends with
sales to consumers
• The chain shows the stages a product passes
through from start to finish
• Different products will have different chains of
production but each stage will add value to the
materials. This is known as wealth creation
8. Businesses are divided into
3 Sectors of the Economy
• Private – owned by private individuals – e.g.
TESCO, Gregg’s, Volkswagen
• Public – owned and controlled by local
government (councils) or national government
e.g. schools, hospitals, libraries, police
• Voluntary – not owned by individuals or
government but ran by volunteers or members
e.g. charities, sports clubs
