Types of businesses

Question 1

How can you classify a business?

Answer 1

A business can be classified based on Its size, the industry sector in which it is located, its legal structure and it geographic location

Question 2

How is a large business defined?

Answer 2

A business that employs 200 or more people

Question 3

How is a small business defined?

Answer 3

A business that employs fewer than 20 people

Question 4

What is the definition of revenue?

Answer 4

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

Question 5

What is a Miro business defined as?

Answer 5

A business that employees fewer than five people.

Question 6

What is a medium sized business?

Answer 6

A business that employs between 21 and 199 people

Question 7

What is the definition of a local business

Answer 7

A local business is an organisation that operates within one area

Question 8

What is the definition of a national business?

Answer 8

A national business is a business that operates across Australia.

Question 9

What is an advantage of a national business?

Answer 9

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

Question 10

What is the definition of a global business?

Answer 10

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.

Question 11

What can a global business also be known as?

Answer 11

A transnational business

Question 12

What is a government enterprise?

Answer 12

A government enterprise is essentially a business that acts for or on behalf of the government. An example of this is the Australian Post.

Question 13

What is the definition of privatisation?

Answer 13

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

Question 14

What is the definition of a primary industry?

Answer 14

Businesses involved in the acquisition of raw materials including natural resources

Question 15

What is the definition of a secondary industry?

Answer 15

A businesses that use raw materials as well as labour and capital equipment to create finished products.

Question 16

What is the definition of a tertiary industry?

Answer 16

A business whose prime function is related to providing a service

Question 17

What is the definition of Quaternary sector?

Answer 17

Tertiary sector businesses that provide information services to their customers and businesses, which enable the transfer of information

Question 18

What is the definition of a Quinary sector?

Answer 18

Tertiary sector businesses that provide services traditionally performed in the home

Question 19

What are all the types of legal structures?

Answer 19

Sole trader, Partnership, Private company, public company, company limited by guarantee, co-operative and trust

Question 20

What is the definition of a sole trader?

Answer 20

An unincorporated business with one owner

Question 21

What is the definition of an Unincorporated business?

Answer 21

Sole traders and partnerships. these are businesses that are not companies because they have not gone through the legal steps for incorporation

Question 22

What is the definition of Owners equity

Answer 22

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.

Question 23

What is the definition of Unlimited Liability?

Answer 23

If a business has unlimited liability, the owner of the business is personally responsible for debt incurred by the business.

Question 24

What is the definition of assets?

Answer 24

All the resources owned y and under the direct control of a business or individual

Question 25

What is the definition of a partnership

Answer 25

An unincorporated business that has more than one owner. The individual owners work together to achieve the goals of the business.

Question 26

What is the definition of a public company?

Answer 26

A public company is a business that is listed on the Australian Securities Exchange and has ownership open to all members of the public

Question 27

What is a trust?

Answer 27

A trust is an organisation that is responsible for managing assets on behalf of an individual or a group of individuals.

Question 28

What is the definition of demutualisation?

Answer 28

The process of offering shares in a business to members. The organisation becomes a shareholder-based organisation rather than an organisation controlled by members.