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| Question | Answer |
| Levels of business activity | The three main stages which are typical to nearly all production. |
| Primary Sector | of industry extracts and uses the natural resources from the earth. |
| Secondary Sector | of industry manufactures goods using the raw materials provided by the primary sector. |
| Tertiary Sector | of industry provides services to consumers and the other sectors of industry. |
| De-industrialisation | occurs when there is a decline in the importance of the secondary (or manufacturing) sector of industry in a country. |
| Free market economy | has no government control over factors of production. |
| Command Economy | Does not have a private sector as all resources are owned by the state. |
| Mixed Economy | Has both a private sector and a public sector. |
| Monopoly | A business which controls all of the market for a product. |
| Private sector | Made up of businesses not owned by the government. |
| Public sector | Made up of government, or state-owned, businesses and controlled businesses and organisation. |
| Privatisation | The transfer of ownership of businesses from the government to the private sector. |
| Nationalisation | The process of taking a private industry into public ownership by a national government or state. |
| Capital | The money invested into a business by its owners. |
| Internal Growth | When a business expands its existing operations. |
| External Growth/Intergration | When a business works with, takes over or merges with another business. |
| A merger | When the owners of two or more business decide to join their firms together and make one business. |
| Takeover/Acquisition | When one business buys out the owners of another business which then becomes part of the 'predator' business. |
| Horizontal Intergration | When one firm merges with, or takes over, another business in the same industry at the same level of production. |
| Vertical Integration | When one firm merges with, or takes over, another business in the same industry but at a different stage of production. |
| Forward Vertical Intergration | When one firm merges with, or takes over with another business in the same industry but at a higher stage of production. |
| Backward Vertical Intergration | When one firm merges with, or takes over with another business in the same industry but at a lower stage of production. |
| Conglomerate Intergration/ Diversification | When one firm merges with, or takes over, a firm in a completely different industry. |
| Niche | An opportunity for a business to offer a product or service that is not offered by other businesses. |
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