Types of businesses Flashcards
What are the methods of classifying a business?
Based on size, industry sector, geographic location(s), and legal structure.
What is the definition of ‘commercial’?
Involving or relating to the buying and selling of goods.
What is a micro business?
A business that employs fewer than 5 people.
What is a small business?
A business that employs between 5-20 people.
What is a medium-sized business?
A business that employs between 21 and 199 people.
What is a large business?
A business that employs 200 or more people.
What does SME stand for?
Small to medium business.
What was the ATO’s definition of small business before July 2016?
A business with a turnover of less than $2 million.
What is the ATO’s definition of small business after July 2016?
A business with a turnover of less than $10 million.
What are the five classifications according to industry sector?
- Primary
- Secondary
- Tertiary
- Quaternary
- Quinary
What does the primary industry involve?
Businesses involved in the acquisition of raw materials.
What does the secondary industry do?
Uses raw materials, combined with labour and capital equipment, to create finished products.
What is the function of the tertiary industry?
Businesses whose prime function is related to providing a service.
What is the quaternary sector?
Businesses that provide information services to their customers.
What does the quinary sector focus on?
Businesses that provide services traditionally performed in the home.
Fill in the blank: A business that employs between 5-20 people is classified as a ______.
small business
True or False: The ABS definitions of business size are commonly used.
True
What are examples of businesses in the tertiary industry?
- Hairdresser
- Doctor
- Engineer
What are examples of businesses in the quinary sector?
- Home-maintenance businesses
- Cleaning
- Childcare centres
What is the role of businesses in the primary industry?
Acquisition of raw materials.
What are examples of the secondary industry?
- Manufacturing
- Processing
- Construction
