Edexcel IGCSE Business Studies 1.3 Classification of Businesses Questions

Practise sector classification by matching business activities to extraction, manufacturing or service provision in short questions.

Syllabus
First assessment 2019
Course
Business Studies 4BS1

Exam points

  • Define primary, secondary or tertiary sector from the type of activity described.
  • Classify retail, raw-material extraction or product conversion into the correct sector.

Question 1

[Maximum number: 1]

Ocean Vibes is a boat tour business located in two tourists resorts in Portugal. During the tours, it collects wildlife research. The idea came from two young scientists, Alfredo and Pedro, who share a passion for the environment, boats and science. Ocean Vibes employs boat tour guides and a sales team in each of the two resorts.

The main goal of Ocean Vibes is to connect tourism with science. It offers dolphin and bird-watching tours to tourists and uses the boat tours to collect research data on the wildlife. Its tour guides are knowledgeable, passionate and respectful of the environment.

Customers can book the boat tours online or in the tourist resorts. They are encouraged to leave reviews on Ocean Vibes' website.
Every month Ocean Vibes provides a boat tour for students and researchers who wish to study the wildlife.

There are many other businesses offering boat tours in Portugal which makes competing in the industry a challenge.

Define the term primary sector.

Question 2

[Maximum number: 2]

In 1971 Starbucks opened its first coffee shop in Seattle, Washington, US. Since then, it has experienced significant growth with more than 32,000 stores operating across 80 countries. It sells coffee and food products including cakes, biscuits and sandwiches. Starbucks has a mission 'To inspire and nurture the human spirit - one person, one cup and one neighbourhood at a time.'

Starbucks refers to its employees as 'partners' as they encourage people to support each other and work to achieve common goals. It offers the opportunity for partners to develop their skills and knowledge of the coffee shop market, by starting as baristas, then as coffee masters and finally as coffee shop managers.

Question (a)

(a)

Which one of the following is a secondary sector activity?

Select one answer.

A

Coal mining

B

Engineering

C

Farming

D

Insurance

[ 1 ]

Question (b)

(b)

Define the term tertiary sector.

[ 1 ]

Question 3

[Maximum number: 1]

Irsi Chocolatier is a chocolate shop in Brussels, the capital city of Belgium. There are many other chocolate shops nearby. Opened in 1989 by the Corne family the business now has four directors and three employees. Florent Corne is the Managing Director with three other family members as Directors. Irsi Chocolatier opens from Tuesday till Saturday. The shop sells a variety of handmade chocolates and jelly fruit sweets. It delivers locally and has a website for information purposes only.

Which one of the following is the sector that converts raw materials into products?

Select one answer.

A

Public

B

Tertiary

C

Primary

D

Secondary

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