Type of a business Flashcards

1
Q

SME

A

small to medium enterprise - fewer then 200 full time employees

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2
Q

Micro Business

A

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

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3
Q

Local business

A

restricted geographical location
used by customers near by
small to medium

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4
Q

National business

A

increased range of products

run out of new customers - the domestic market becomes saturated

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5
Q

Global business

A

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

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6
Q

Classification of a industry

A

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

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7
Q

Legal structure

A

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)

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8
Q

sole trader (definition, ads and dis)

A

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

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9
Q

partnership (definition, ads and dis)

A

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

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10
Q

companies

A

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

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11
Q

private companies

A

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

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12
Q

Public companies

A

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

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13
Q

ads and dis about public company

A

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

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14
Q

ownership

A

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

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15
Q

Government enterprise (public sector)

A

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

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