Types of businesses Flashcards
How can you classify a business?
A business can be classified based on Its size, the industry sector in which it is located, its legal structure and it geographic location
How is a large business defined?
A business that employs 200 or more people
How is a small business defined?
A business that employs fewer than 20 people
What is the definition of revenue?
All funds flowing into the business; may include sales receipts and fees for services, rent, interest from investments and dividends from shares in other businesses
What is a Miro business defined as?
A business that employees fewer than five people.
What is a medium sized business?
A business that employs between 21 and 199 people
What is the definition of a local business
A local business is an organisation that operates within one area
What is the definition of a national business?
A national business is a business that operates across Australia.
What is an advantage of a national business?
Their geographical diversity across the country allows the business to achieve coast saving through bulk buying due to the size of it national customer base
What is the definition of a global business?
In a global business production is based in one country while its sales are global; It exports the goods and \/ or services it produces to other countries.
What can a global business also be known as?
A transnational business
What is a government enterprise?
A government enterprise is essentially a business that acts for or on behalf of the government. An example of this is the Australian Post.
What is the definition of privatisation?
A process transferring the ownership of a government business to the private sector by issuing a prospectus and listing the business on the Australian securities exchange as a public company
What is the definition of a primary industry?
Businesses involved in the acquisition of raw materials including natural resources
What is the definition of a secondary industry?
A businesses that use raw materials as well as labour and capital equipment to create finished products.
What is the definition of a tertiary industry?
A business whose prime function is related to providing a service
What is the definition of Quaternary sector?
Tertiary sector businesses that provide information services to their customers and businesses, which enable the transfer of information
What is the definition of a Quinary sector?
Tertiary sector businesses that provide services traditionally performed in the home
What are all the types of legal structures?
Sole trader, Partnership, Private company, public company, company limited by guarantee, co-operative and trust
What is the definition of a sole trader?
An unincorporated business with one owner
What is the definition of an Unincorporated business?
Sole traders and partnerships. these are businesses that are not companies because they have not gone through the legal steps for incorporation
What is the definition of Owners equity
The owners’s financial claim on the assets of a business. It is the owners investment made into the business by contributing capital or busying shares plus any profit the business makes.
What is the definition of Unlimited Liability?
If a business has unlimited liability, the owner of the business is personally responsible for debt incurred by the business.
What is the definition of assets?
All the resources owned y and under the direct control of a business or individual
