Chapter 2 – Classification of Businesses
1. Classification of Businesses:
Businesses are categorized into three sectors: Primary,
Secondary, and Tertiary.
Primary sector involves extracting natural resources (e.g.,
farming, fishing).
Secondary sector includes manufacturing and production of
goods (e.g., car manufacturer).
Tertiary sector provides services (e.g., hairdressing, banking).
Importance of each sector depends on the number of workers
employed and the value of output produced.
Deindustrialization happens when the secondary sector's
significance declines due to various factors.
1. Depletion of primary resources in home country.
2. Cheaper goods by developing countries
3. Ability to spend more income on services.
2. Mixed Economy:
Mixed economy has both private and public sectors.
Private Sector: Businesses not owned by the government, focus
on making profits.
Public Sector: Government-owned, aim to provide services (e.g.,
healthcare, education, defense, public transport).
Privatization is selling a public sector business to the private
sector.
Privatization occurs for efficiency and higher profits, but private
businesses may neglect social objectives, making products
unaffordable.
Flashcards - Business Studies:
Front of the flashcard:
What are the three sectors of businesses?
Define Deindustrialization.
What is a Mixed Economy?
What are the characteristics of the Private Sector?
What is Privatization, and why does it happen?
Back of the flashcard:
The three sectors are Primary, Secondary, and Tertiary.
Deindustrialization occurs when the importance of the secondary
sector declines.
Mixed Economy has both private and public sectors.
Private Sector: Businesses aim to make profits and are not
government-owned.
Privatization is selling public sector businesses to the private sector,
driven by efficiency and higher profits.
Lesson Plan Objectives
Lesson 1: Classification of
Businesses
By the end of the lesson, students should be able to define
Objective 1: Understand the and differentiate the primary, secondary, and tertiary
three sectors of businesses. sectors of businesses.
Objective 2: Identify examples Students should be able to provide real-life examples of
of businesses in each sector. businesses in the primary, secondary, and tertiary sectors.
Students should be able to explain how the number of
Objective 3: Analyze the workers employed and the value of output produced
relative importance of sectors in determine the relative significance of sectors in an
an economy. economy.
Lesson 2:
Deindustrialization and its
Causes
Objective 1: Define
deindustrialization and its By the end of the lesson, students should be able to define
implications. deindustrialization and discuss its impact on the economy.
Lesson Plan Objectives
Students should be able to identify factors such as
Objective 2: Identify factors depletion of primary resources and global competition as
causing deindustrialization. causes of deindustrialization.
Lesson 3: Mixed Economy
and Public vs. Private Sector
Objective 1: Understand the By the end of the lesson, students should be able to define
concept of a mixed economy. and describe a mixed economy and its characteristics.
Objective 2: Differentiate Students should be able to distinguish between private
between the private and public sector businesses driven by profit and public sector entities
sectors. providing services.
Objective 3: Discuss the Students should be able to explain privatization and
concept and reasons for analyze why governments may choose to sell public sector
privatization. businesses to the private sector.