Types of Businesses Flashcards
Chapter 2 Module 1
Float
The raising of capital in a company through the sale of shares to the public.
Geographical Spread
The presence of a business and the range of its products across a suburb, city, state or country, or the globe.
Government Enterprises
Government-owned and operated businesses.
Incorporated
Refers to the process companies go through to become a separate legal entity from the owner/s.
Industry
Businesses that are involved in similar types of production.
Large Business
A business with 200 or more employees.
Limited Liability
A feature of corporate ownership that limits each owner’s financial liability to the amount of money he or she has paid for the business’s shares.
local business
a business that has a restricted geographical spread; it serves the surrounding area.
medium business
a business with 20–199 employees
micro business
a business with fewer than five employees
multinational corporation
a company that has branches in many different countries
national business
a business that operates within just one country
partnership
a legal business structure that is owned and operated by between 2 and 20 people with the aim of making a profit
primary industry
includes those businesses involved in the collection of natural resources
privatisation
the process of transferring the ownership of a government business to the private sector
proprietary (private) company
an incorporated business and usually has between 2 and 50 private shareholders
prospectus
a document giving details of a company and inviting the public to buy shares in it
quaternary industry
includes services that involve the transfer and processing of information and knowledge
quinary industry
includes services that have traditionally been performed in the home
secondary industry
includes businesses that take a raw material and make it into a finished or semi-finished product
small business
a business with 5–19 employees
small to medium enterprises
defined by the Australian Bureau of Statistics as firms with fewer than 200 full-time equivalent employees and/or less than $10 million turnover
sole trader
a business that is owned and operated by only one person
tertiary industry
involves people performing a vast range of services for other people
