Chapter 1.2 - Distinctions between Small, Medium And Large Businesses Flashcards
Explain the ownership of small, medium and large businesses.
Small - Sole trader or a partnership
Medium - Owned and operated by a few people or private shareholders.
Large - Owned usually by thousands of public shareholders.
What is legal structure?
Legal structure is how the business is set up, who owns it.
What would examples be of small, medium and large businesses?
Small - hairdressing salon, mechanic, local pizza shop
Medium - motel/hotel, engineering factory
Large - Qantas, Woolworths
What is market share?
A businesses market share refers to the businesses’ share of the total industry sales for a particular product. Their percentage of sales versus their competitors.
For small, medium and large businesses, how large is their market share?
Small - small, usually local area, not very dominant
Medium - medium, due to dominance within a geographic region
Large - large, multinational corporations that dominate
