Nature Of Business - type of businesses

Question 1

4 business sizes

Answer 1

• Micro-business 1-5
• Small 6-20
• Medium 20-199
• Large 200+

Question 2

3 geographical spreads of business

Answer 2

• Local
• National
• Global

Question 3

5 Industry sectors

Answer 3

• Quinary
• Quaternary
• Tertiary
• Secondary
• Primary

Question 4

Primary industry

Answer 4

businesses involved in the collection of natural resources

Question 5

Secondary industry

Answer 5

taking a raw material and making it into a finished or semi-finished product

Question 6

Tertiary industry

Answer 6

involves performing service for other people

Question 7

Quaternary industry

Answer 7

includes services that involve the transfer and processing of information and knowledge

Question 8

Quinary industry

Answer 8

service based industry that is done in the home

e.g. someone coming to my house and cleaning to get payed

Question 9

5 types of legal structure

Answer 9

• Sole trader
• Partnership
• Private company
• Public company
• Government enterprise

Question 10

Transnational (multinational) corporation

Answer 10

is a company that has branches in many different countires (global business)

Question 11

Small to medium enterprises (SME)

Answer 11

firms with fewer than 200 full-time equivalent employees and/or less than $10 million turnover

Question 12

Micro business

Answer 12

employs less than 5 people that represents 88% of the entire small-business population

Question 13

Geographical spread

Answer 13

the presence of a business and the range of it’s products across a suburb, city, state or country or the globe

Question 14

Local business

Answer 14

has a very restricted geographical spread; it serves the surrounding area

Question 15

National business

Answer 15

is one that operates within just one country

Question 16

Incorporated

Answer 16

refers to the process companies go through to become a separate legal entity from the owner/s

eg
Public company
Private company

Question 17

Uncorporated

Answer 17

doesn’t give the protection of a company

Sole trader
Partnership

Question 18

Sole trader

Answer 18

a business that is owned and operated by only one person

Question 19

unlimited liability

Answer 19

the business owner is personally responsible for all the debts of their business

Question 20

partnership

Answer 20

a legal business structure that is owned and operated by between 2-20 people (aim to make profit)

Question 21

incorporation

Answer 21

the process that companies go through to become incorporated (other card)

Question 22

Limited liability

Answer 22

a feature of corporate ownership that limits each owner’s financial liability to the amount of money they have paid for the business shares

Question 23

private (proprietary) company

Answer 23

an incorporated business that usually has between 2-50 shareholders

Question 24

Government enterprises

Answer 24

are government-owned and operated businesses

Question 25

Privatisation

Answer 25

is the process of transferring the ownership of a government business to the private sector

Question 26

3 Factors that influence the business owner

Answer 26

1. Size of business
2. Ownership
3. Finances

Question 27

Why would an owner have to increase their business size?

Answer 27

If sales increase and the business need to grow to meet this higher level of customer demand

Question 28

float

Answer 28

the raising of capital in a company through the sale of shares to the public

Question 29

prospectus

Answer 29

a document giving details of a company and inviting the public to buy shares in it

Question 30

venture capital

Answer 30

money that is invested in small and sometimes struggling businesses that have the potential to become very successful