types of businesses Flashcards
small business
2-20 employees
independently owned
local
medium business
20-200 employees
owned by a few people
large business
200 plus employees
large market share
local business
restricted geographical spread
usually located in a small area
national business
operates within one country
global business
multinational corporation
located in many countries
primary industry
businesses involved in a collection of natural resources
secondary industry
taking raw material and turning it into a product
tertiary industry
people performing a vast range of services to other people
quaternary industry
services involving the transfer and processing of information and knowledge
quinary industry
services that have traditionally been performed in the home
unincorporated
has no separate legal existence from the owner
UNLIMITED LIABILITY
incorporated
a separate legal entity from the owner
LIMITED LIABILITY
sole trader
a business that is owned by one person unincorporated
partnership
owned and operated by between two and twenty people. unincorporated
private company
usually has between two and fifty private shareholders.
must have the words PTY LTD in the name.
incorporated
public company
ownership can be divided by shares that can be traded by the general public.
usually global businesses
must have the word LTD in the name
incorporated
assets
things that can be used to meet financial obligations
liabilities
financial obligations that must be met.
external environment
includes factors over which the business has very little control.
(EXTERNAL INFLUENCE)
economic
the influence of economic cycles (boom/peak and bust/recession periods)
(EXTERNAL INFLUENCE)
financial
process of financial deregulation has resulted in the opening up of the financial industry to greater competition
(EXTERNAL INFLUENCE)
geographic
the physical geographic location and changing geographic factors that affect how a business can operate.
(EXTERNAL INFLUENCE)
social
How a society changes and adapts over time.
(EXTERNAL INFLUENCE)
legal
Businesses must comply with laws that the government has put in place for the operation of their business if not there will be consequences
(EXTERNAL INFLUENCE)
political
Governments will pass laws or make changes in policy that will affect businesses
(EXTERNAL INFLUENCE)
institutional
influence policies ensure compliance, fair competition, and consumer protection in various industries
(EXTERNAL INFLUENCE)
technological
limiting staff and acquiring robotics to complete tasks and ensure productivity and efficiency
(EXTERNAL INFLUENCE)
competitive
competition between enterprises
- monopoly- no competitor’s
- oligopoly- few competitors
- monopolistic - large number of competetors
(EXTERNAL INFLUENCE)
markets
A business will be influenced by the type of marketing measures taken by competitors.
internal environment
includes those factors over which the business has some degree of control.
(INTERNAL INFLUENCE)
PRODUCT
Type of goods and services produced will affect internal operations of a business.
(INTERNAL INFLUENCE)
location
The location of a business can mean the difference between success and failure
(INTERNAL INFLUENCE)
resource
goods and services are produced by combing all resources these are human, information, physical, and financial
(INTERNAL INFLUENCE)
management
Increased competition has caused businesses to flatten their structures (fewer levels of management) these are traditional and emerging
(INTERNAL INFLUENCE)
culture
Values, ideas, expectations, and beliefs shared within a business. This can also be goals or rules.
stakeholder
any group or individual who has an interest in or is affected by the activities of a business
(stakeholders)
shareholders
Purchase shares in a company, becoming partial owners. gain voting right on major decisions and receive a portion of profits ( called dividends)
(stakeholders)
managers
Responsible for running a successful, profitable organisation and act as role models to all employees.
(stakeholders)
employees
Manufacture or produce a product. They influence on a business because the quality depends on their skills and commitment.
(stakeholders)
customers
Consumers are astute, educated, and informed, they’re prepared to seek compensation if they believe they’re unfairly treated
(stakeholders)
society
Members of the community expects businesses to show concern for the environment.
(stakeholders)
environment
There is pressure for businesses to be ecologically sustainable when operating because of climate change and destruction of the natural environment
