Type of a business

Question 1

SME

Answer 1

small to medium enterprise - fewer then 200 full time employees

Question 2

Micro Business

Answer 2

fewer then 5 employees
home run
one person
small to little dominance

Question 3

Local business

Answer 3

restricted geographical location
used by customers near by
small to medium

Question 4

National business

Answer 4

increased range of products

run out of new customers - the domestic market becomes saturated

Question 5

Global business

Answer 5

Multinational corporation
features in common such as finance assets technology standardisation
disagrees with shipping as you can’t sell damaged goods and it’s expensive

Question 6

Classification of a industry

Answer 6

Primary – natural resources
Secondary – manufacturing industry
Tertiary – range of services
Quaternary - industry of transferring and processing information and knowledge
Quinary - Services traditionally done at home

Question 7

Legal structure

Answer 7

Sole trader and partnership - unincorporated with unlimited liability
private company and public company - Inc with limited liability ( Your assets are separate to your business earnings)

Question 8

sole trader (definition, ads and dis)

Answer 8

A sole trader is a business owned and operated by one person.
Advantages: No partner disputes and owner is in complete control
Disadvantages: personal unlimited liability difficult to operate if sick or unable

Question 9

partnership (definition, ads and dis)

Answer 9

business run by two operaters

ads: Pools of funds, shared responsibility
dis: In a partnership personal assets are at risk, possible disputes which slow down production - inefficency

Question 10

companies

Answer 10

All companies are incorporated enterprise meaning limited liability - you need to go through the ASIC

Question 11

private companies

Answer 11

2 to 50 shareholders
small to medium size family own business
Pty.LTD
shares are not listed on ASX

Question 12

Public companies

Answer 12

Larger market shares
shares sold on ASX every day without the company knowing
no Max shareholders
LTD

Question 13

ads and dis about public company

Answer 13

ads: Easier to raise public finance, experience board of directors, Limited liability
dis: Cost of establishment, If it becomes too large in efficiencies will occur

Question 14

ownership

Answer 14

If I know once complete control – sole trader
Private company would allow the owner with a high
degree of control also the protection of limited liability
The more shares owned the more ownership

Question 15

Government enterprise (public sector)

Answer 15

Owned by the government not a public business government run meaning government decides the prices monopoly there is no other competition