Types of Business Flashcards
types of businesses classification of business size — small to medium enterprises (SMEs), large local, national, global industry — primary, secondary, tertiary, quaternary, quinary legal structure — sole trader, partnership, private company, public company, government enterprise
Hint: Think about businesses that cater to a specific local community.
What is the business type often associated with small size?
Answer: Small businesses often include corner stores, local mechanics, and hairdressing salons.
Hint: The employee count is relatively low and limited.
How many employees does a small business usually have?
Answer: Small businesses typically have fewer than 20 employees.
Hint: Ownership is usually very hands-on and personal.
Describe the typical type of ownership for a small business.
Answer: Small businesses are usually independently owned and operated, often by one or two people.
: These legal structures involve a relatively small number of owners.
What is the most common legal structure for small businesses?
Answer: The most common legal structures for small businesses are sole traders and partnerships.
Hint: Decision-making is often direct and streamlined.
What is the usual decision-making process in small businesses?
Answer: Owners are responsible for the majority of decisions, leading to a simple and quick implementation of choices.
Hint: Think about where the funds for small businesses come from.
Identify the common sources of finance for small businesses.
Answer: Small businesses rely on equity finance (owner’s funds) and debt finance (loans from financial institutions).
The influence is localized and limited compared to larger competitors.
How would you define the market share of a small business?
Answer: Small businesses usually have a small market share, typically limited to their local area and not dominant in the industry.
businesses that are larger than local shops but not yet conglomerates.
Name some examples of medium-sized businesses.
Answer: Examples of medium-sized businesses include services clubs, motels/hotels, and engineering factories.
What is the range of employees in a medium-sized business?
Answer: Medium-sized businesses usually have 20 to 199 employees.
How is decision-making typically organized in medium-sized businesses?
Answer: Decision-making in medium-sized businesses is still largely overseen by the owners.
Compare the sources of finance for medium-sized businesses with small businesses.
Answer: Medium-sized businesses rely on both equity and debt finance, and may involve private shareholders.
Define the market share characteristics of a medium-sized business.
Answer: Medium-sized businesses have a medium market share, dominating within a specific geographic region.
Provide examples of large businesses.
Answer: Large businesses include well-known entities like Woolworths, Qantas, and the National Australia Bank.
What distinguishes the number of employees in a large business?
Answer: Large businesses typically have 200 or more employees.
Describe the type of ownership for large businesses.
Answer: Large businesses are usually owned by thousands of shareholders, often as public companies.
Explain the decision-making process in large businesses.
Answer: Decision-making in large businesses is complex due to divisions of responsibilities and layers of management.
