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The three sectors of industry are the primary sector, the secondary sector and the tertiary sector. The tertiary sector provides services to customers, such as selling petrol at the gas station. The four functional areas must work together to achieve goals set by the business or organisation. All production can be classified into three broad types of business activity, or sectors of industry. Total national output (Gross Domestic Product) increases and this raises average standards of living. The expansion of service industries may make it difficult for BP to recruit and retain sufficient staff. Often there is not a requirement for large amounts of start-up capital for capital equipment.
A small to medium-sized business that is owned by shareholders who are often members of the same family. The private sector comprises businesses owned and controlled by individuals or groups of individuals. Workload and stress - Sole traders largely depend upon the abilities and commitment of the owner.
Lack of continuity - the running of a business may be jeopardised if the owner is not present. Higher costs of production - a sole trader is not able to exploit the benefits of large scale production.
Private limited companies can raise larger sums of money for financing their investment projects. As companies have limited liability, it is easier for them to attract both private and commercial investors. A Private Limited Company is a company that cannot raise share capital from the general public. Public limited companies are in the private sector of industry – but public corporations are not. They are still able to raise share capital from the sale of shares to family, friends and employees. These can be recognised by the use of ‘plc’ or ‘inc.’ (incorporated) after the company name. Share prices subject to fluctuation – sometimes for reasons beyond the businesses control (e.g. Legal requirements concerning disclosure of information to shareholders and the public (e.g. Discuss how changes in the economic structure of Australia could impact on BP’s Kwinana refinery. Outline the factors of production needed to set up the business providing CVs to school leavers.
Using the gym instructor’s business as an example, list the business functions involved in this business.
A private limited company is a small to mediumsized business that is owned by shareholders who are often members of the same family.
In a company, the death of an owner or director does not lead to its break-up or dissolution.



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