Classifying business: Size Flashcards
How to determine whether a business is small, medium or large?
By the number of employees, number of owners, market share (the proportion of total market sales the business has compared to competitors) and legal structure.
How many employees does a small business have?
With 5-19 employees.
How many employees does a medium business have?
With 20-199 employees.
How many employees does a large business have?
With 200 or more employees.
How many employees does a micro business have?
fewer than 5 employees.
features of a small business
independent ownership and operations.
close control by owners/managers who contribute most, of not all of the operating capital.
principle decision-making by the owners/managers.
small businesses include;
businesses of less than 20 employees.
non-employing businesses (sole proprieties and partnerships that do not employ).
Businesses with under $200,000 financial turn over are considered what?
considered to be ‘small’ businesses.
For an agricultural business $400,000 financial turn over is deemed as;
a ‘small’ business.
Businesses with turnover of $200,000 - $2 million financial turn over are considered what?
Medium businesses.
Businesses with financial turn over of above $2 million are considered what?
a large business.
