Classifying firms by sector and size

Steps:

• Define sectors: primary (extracting resources like farming), secondary (manufacturing like steel production), tertiary (services like retail or personal care).
• Identify tertiary options: hairdresser and supermarket provide services; farm and steelworks do not.
• Assess size: small firms typically have few employees (under 50) and local operations.
• Select the smallest tertiary firm: hairdresser fits as a solo or small-team service business.

Why B is correct:

• Hairdresser operates in the tertiary sector (personal services) and is defined as small by low employee count and localized scale, per standard economic classifications.

Why the others are wrong:

• A: Farm is in the primary sector (agriculture), not tertiary.
• C: Steelworks is in the secondary sector (manufacturing), not tertiary.
• D: Supermarket is tertiary (retail services) but typically large with many employees and chain operations.

Final answer: B