types of businesses

Question 1

small business

Answer 1

2-20 employees
independently owned
local

Question 2

medium business

Answer 2

20-200 employees
owned by a few people

Question 3

large business

Answer 3

200 plus employees
large market share

Question 4

local business

Answer 4

restricted geographical spread
usually located in a small area

Question 5

national business

Answer 5

operates within one country

Question 6

global business

Answer 6

multinational corporation
located in many countries

Question 7

primary industry

Answer 7

businesses involved in a collection of natural resources

Question 8

secondary industry

Answer 8

taking raw material and turning it into a product

Question 9

tertiary industry

Answer 9

people performing a vast range of services to other people

Question 10

quaternary industry

Answer 10

services involving the transfer and processing of information and knowledge

Question 11

quinary industry

Answer 11

services that have traditionally been performed in the home

Question 12

unincorporated

Answer 12

has no separate legal existence from the owner
UNLIMITED LIABILITY

Question 13

incorporated

Answer 13

a separate legal entity from the owner
LIMITED LIABILITY

Question 14

sole trader

Answer 14

a business that is owned by one person unincorporated

Question 15

partnership

Answer 15

owned and operated by between two and twenty people. unincorporated

Question 16

private company

Answer 16

usually has between two and fifty private shareholders.
must have the words PTY LTD in the name.
incorporated

Question 17

public company

Answer 17

ownership can be divided by shares that can be traded by the general public.
usually global businesses
must have the word LTD in the name
incorporated

Question 18

assets

Answer 18

things that can be used to meet financial obligations

Question 19

liabilities

Answer 19

financial obligations that must be met.

Question 20

external environment

Answer 20

includes factors over which the business has very little control.

Question 21

(EXTERNAL INFLUENCE)
economic

Answer 21

the influence of economic cycles (boom/peak and bust/recession periods)

Question 22

(EXTERNAL INFLUENCE)
financial

Answer 22

process of financial deregulation has resulted in the opening up of the financial industry to greater competition

Question 23

(EXTERNAL INFLUENCE)
geographic

Answer 23

the physical geographic location and changing geographic factors that affect how a business can operate.

Question 24

(EXTERNAL INFLUENCE)
social

Answer 24

How a society changes and adapts over time.

Question 25

(EXTERNAL INFLUENCE) legal

Answer 25

Businesses must comply with laws that the government has put in place for the operation of their business if not there will be consequences

Question 26

(EXTERNAL INFLUENCE) political

Answer 26

Governments will pass laws or make changes in policy that will affect businesses

Question 27

(EXTERNAL INFLUENCE) institutional

Answer 27

influence policies ensure compliance, fair competition, and consumer protection in various industries

Question 28

(EXTERNAL INFLUENCE) technological

Answer 28

limiting staff and acquiring robotics to complete tasks and ensure productivity and efficiency

Question 29

(EXTERNAL INFLUENCE) competitive

Answer 29

competition between enterprises - monopoly- no competitor's - oligopoly- few competitors - monopolistic - large number of competetors

Question 30

(EXTERNAL INFLUENCE) markets

Answer 30

A business will be influenced by the type of marketing measures taken by competitors.

Question 31

internal environment

Answer 31

includes those factors over which the business has some degree of control.

Question 32

(INTERNAL INFLUENCE) PRODUCT

Answer 32

Type of goods and services produced will affect internal operations of a business.

Question 33

(INTERNAL INFLUENCE) location

Answer 33

The location of a business can mean the difference between success and failure

Question 34

(INTERNAL INFLUENCE) resource

Answer 34

goods and services are produced by combing all resources these are human, information, physical, and financial

Question 35

(INTERNAL INFLUENCE) management

Answer 35

Increased competition has caused businesses to flatten their structures (fewer levels of management) these are traditional and emerging

Question 36

(INTERNAL INFLUENCE) culture

Answer 36

Values, ideas, expectations, and beliefs shared within a business. This can also be goals or rules.

Question 37

stakeholder

Answer 37

any group or individual who has an interest in or is affected by the activities of a business

Question 38

(stakeholders) shareholders

Answer 38

Purchase shares in a company, becoming partial owners. gain voting right on major decisions and receive a portion of profits ( called dividends)

Question 38

(stakeholders) managers

Answer 38

Responsible for running a successful, profitable organisation and act as role models to all employees.

Question 39

(stakeholders) employees

Answer 39

Manufacture or produce a product. They influence on a business because the quality depends on their skills and commitment.

Question 40

(stakeholders) customers

Answer 40

Consumers are astute, educated, and informed, they're prepared to seek compensation if they believe they’re unfairly treated

Question 41

(stakeholders) society

Answer 41

Members of the community expects businesses to show concern for the environment.

Question 42

(stakeholders) environment

Answer 42

There is pressure for businesses to be ecologically sustainable when operating because of climate change and destruction of the natural environment