Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business Studies > Chapter 2: Types of Business > Flashcards

Chapter 2: Types of Business Flashcards

1
Q

What are the three quantitative measure for size

A
  • number of employees
  • market share
  • number of owners
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

classification of a business by number of employees

A

micro business - fewer than 5 employees
small business - between 5 and 19 employees
medium business - 20 to 199 employees
large business - more than 200 employees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are SMEs

A

SME’s are small to medium enterprises. They are firms with less than 200 full time employees.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is a turnover

A

money you make over a period of time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is one example of a qualitative measure for size?

A

Does the owner make most decision?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What percentage of the sector do micro-businesses make up?

A

90%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Examples of micro businesses

A

traders - painters, plumbers, electricians
professional services - doctor, accountants, solicitors
corner store
farms
personal trainers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what are the three classification by geographical spread

A

local
national
gloabl

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Explain how the global network is formed

A

Suburbs and town → make local community or neighbourhood → which form the nation of Australia → which is part of the global network

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what size are local businesses

A

small to medium

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

When can a business classify as a national business

A

When the business grows it increases the ranges of products and area it serves.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is a another name for global businesses

A

multinational corporations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the five main types of industry sectors

A

primary
secondary
tertiary
quaternaty
quinary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How to classify a business by legal structure?

A
  • sole trader
  • partnership
  • company
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What does incorporated mean

A

Incorporated refers to the process of when companies become a seperate legal entity from the owners.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What does unincorporated mean

A

There is no legal separation from the owners.
Typically a sole trader or partnership. When the owner dies, the business dies too.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Identify three features of a sole trader business

A
  1. owned and operated by ONE person
  2. unlimited liability
  3. if the business runs into financial difficulties, the owner may have to sell personal assets to pay for the liabilities of the business.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

If a sole trader’s business name is different to their name, who does the name have to be registered with?

A

Australian Securities and Investment Commission (ASIC)

19
Q

What is a partnership?

A

A partnership is a legal business structure that is owned and operated between two and 20 people.

20
Q

Identify two features of a partnership

A
  1. no legal separation from the business
  2. unlimited liability
21
Q

What is a limited partnership?

A

allow one or more partners to contribute financially to the business but take no part in the running of a partnership.

22
Q

Other names for limited partnerships

A

silent or sleeping partners

23
Q

Features of a company

A

All companies are incorporated enterprises. This means the company has legal separation from its owners (shareholders).

24
Q

Types of companies

A

Limited liability
Proprietary limited
Public

25
Q

How to identify a limited liability company?

A

‘Ltd’

26
Q

How to identify a proprietary limited company?

A

‘Pty Ltd’ -private company

27
Q

What are government enterprises?

A

They are government owned and operated businesses.
Operated by all levels of government:
federal
state
locla

28
Q

Whats the term for government enterprises?

A

government business enterprises (GBE)

29
Q

Examples of GBEs

A

Sydney Trains

30
Q

What factors influence legal structure

A
  1. size of the business
  2. ownership
  3. finances
31
Q

What are the four different ways to classify a business?

A
  1. Size
  2. Industry Sector
  3. Geographical spread
  4. Legal structure
32
Q

What are the quantitative ways to classify a business by size

A
  • number of employees
  • market share
33
Q

How can the number of employees classify a business?

A

Micro business: fewer than 5
Small: 5-19
Medium: 20-199
Large: greater than 200

34
Q

What is the primary industry

A

Primary industries include businesses involved in the collection of natural resources.
Eg argiculture, mining

35
Q

What is the secondary industry

A

Secondary industry includes businesses that take raw materials produced from the primary industry and process it into finished or semi- finished products.
Eg. manufacturing, utilities, construction

36
Q

What is the tertiary Industry

A

The tertiary industry involved people performing vast ranges of services for other people
Eg. restaurants, cafes, retailers, dentists, museums, health workers, transport

37
Q

What is the quaternary industry

A

Quaternary industry includes services that involve the transfer and processing of information and knowledge.
eg. finance, education

38
Q

What is the quinary industry

A

Quinary industry includes services that have traditionally been performed in the home. This includes paid and unpaid work.
Eg. hospitality,, childcare.

39
Q

what is a float

A

A float is the raising of capital in a company through the sale of shares to the public.

40
Q

What does capital mean

A

Capital is the money used to build, run, or grow a business.

41
Q

What is a prospectus

A

A prospectus is a document giving details of a company and inviting the public to buy shares in it.

42
Q

If you’re the owner of an unincorporated business, what tax do you pay?

A

personal income tax on the share of profit

43
Q

If a business becomes incorporated what do they turn into?

A

A company

44
Q

If you’re the owner of an incorporated business, what tax do you pay?

A

Company tax

Business Studies (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions