Chapter 1

Understanding Business Activity

Needs and wants, goods and services, business sectors and enterprise — with an interactive exercise.

Understanding Business Activity: businesses combine resources to make goods and services that satisfy people's needs and wants.

Business is split into three sectors: primary (raw materials, e.g. farming), secondary (manufacturing) and tertiary (services). Enterprise is taking a risk to start a business.

Remember

  • Sectors: primary (raw), secondary (make), tertiary (services).
  • An entrepreneur takes risks to start a business.

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