Types of businesses

Question 1

What are the 4 classifications of businesses?

Answer 1

Size, coverage, industry, legal structure

Question 2

How many employees does a micro business have?

Answer 2

Fewer than 5

Question 3

How many employees does a small business have?

Answer 3

5-19

Question 4

How many employees does a medium business have?

Answer 4

20-199

Question 5

How many employees does a large business have?

Answer 5

200+

Question 6

What is a local business?

Answer 6

A local business is a business that has a very restricted geographical spread, it serves the surrounding area

Question 7

what is a National business?

Answer 7

A national business is one that operates within just one country

Question 8

what is a global business?

Answer 8

A business that operates in many different countries

Question 9

what is the primary industry and some examples?

Answer 9

A business that is involved with the extraction or growing of raw materials, mining, farming

Question 10

what is the quinary industry and some examples?

Answer 10

all services that have traditionally performed in the home. (hospitality, babysiting,cleaning)

Question 11

How can different industry’s interact

Answer 11

the primary industry producers and collects natural resources and the secondary industry can process the resources into semi-finished or finished products.

Question 12

Unincorporated

Answer 12

Business owner has unlimited liability, this includes sole trader and partnership

Question 13

incorporated

Answer 13

The business is its own legal entity, therefore the business owners personal assets are not at risk

Question 14

unlimited liability

Answer 14

business owners are personally liable for any loss the business makes (SOLE TRADER, PARTNERSHIP)

Question 15

limited liability

Answer 15

investors and owners private assets are not at risk if the company fails (PRIVATE COMPANY, PUBLIC COMPANY)

Question 16

sole trader

Answer 16

type of enterprise owned and run by one person and in which there is no legal distinction between the owner and the business entity
Advantages- low start up cost, owners control, flexible
disadvantage’s- unlimited liability

Question 17

partnership

Answer 17

operated and owned by between 2-20 people, unincorporated, unlimited liability, the partnership can be made verbally, in writing by implication.
ad-flexible, less paperwork, low start up cost
dis- unlimited liability, less income

Question 18

private company

Answer 18

limited liability, incorporated, perpetual succession, double taxation, can transfer ownership, 2-50 shareholders

Question 19

public company

Answer 19

limited liability, incorporated, perpetual succession, double taxation, can transfer ownership, unlimited shareholders

Question 20

government enterprise

Answer 20

Government enterprises (public sector businesses) are government-owned and operated businesses

Question 21

factors influencing legal structure

Answer 21

size, ownership finance