Sectors of the Economy
refers to business activity involved with the extraction of natural resources.
Primary Sector
this part of the economy consists of businesses owned and run by individuals and organizations that usually, but not always, aim to earn a profit.
private sector
An inspiring declaration of what an organization ultimately strives to be, or to achieve, in the distant future.
vision statement
An organized group seeking to influence business or government actions to achieve social, ethical, or environmental change.
Pressure Group
This growth strategy involves the right to trade using another company’s products, brand name and corporate logo.
Franchise
The continent where most of their GDP comes from the primary sector
Africa
parks, fire services, and police services are all a part of the...
public sector
These are the shorter term approaches to achieving business objectives.
tactics
A share of a company’s profits distributed to shareholders, usually paid bi-annually.
dividend
Growth that is excessive results in inefficiencies and higher average costs of production, perhaps due to problems such as miscommunication, misunderstandings, and poor management of resources.
Diseconomies of Scale
The country with the highest percentage of their GDP coming from the secondary sector
China
In the context of social enterprises, this refers to the income remaining after costs that are reinvested to support the organisation’s social mission.
Surplus
A succinct and motivating declaration of an organization’s purpose of existence, who they are, and what they do.
mission statement
Banks, investors, or institutions that provide finance and expect repayment and a financial return.
Financiers
This form of external growth involves two or more companies agreeing to form a single, larger company thereby benefiting from operating on a larger scale.
Merger
The tertiary sector is also known as the ...
service sector
A situation where the business owner is legally and personally responsible for all debts and may lose personal assets if the business fails.
unlimited liability
This is an organization’s decisions and actions that impact society in a positive way.
Corporate Social Responsibility
Supervisory managers responsible for controlling day-to-day operations and overseeing frontline employees.
Junior Management
An external growth method that involves two or more organizations agreeing to create a new business entity, usually for a finite period of time.
The quaternary sector is often referred to as the....
knowledge economy
This formal contract between the partners outlines each of their responsibilities, voting rights, and how profits are to be shared between the owners.
Deed of Partnership
The four common business objectives
profit, growth, ethical objectives, protecting shareholder value
A group of elected senior executives responsible for setting corporate strategy, overseeing the management team, and protecting shareholders’ interests.
Board of Directors
This form of external growth occurs when two or more businesses in unrelated industries integrate through a merger, acquisition, or takeover. ex. LVMH
Conglomerate