Term
| Name the four common methods used to classify business types. |
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Definition
The four common methods used to classify a business by its type are:
*Size
*Geographical Spread/Reach
*Legal Structure
*Industry Sector |
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Term
| Name the various businesses sizes as per ABS and explain what determines their size along with the appropriate figures for each size. |
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Definition
There are four business sizes:
*micro
*small
*medium
*large
The sizes are generally determined by the number of employees employed by a business as follows:
micro: 0-5 employees (inclusive of the business owner)
small: 0-20 employees
medium: 21-199 employees
large: 200 or more employees |
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Term
| Name the four main legal structures of privately owned businesses. |
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Definition
The four main legal structures of privately owned businesses are:
*sole trader
*partnership
*private company
*public company |
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Term
| Which types of businesses are unincorporated and which are incorporated? |
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Definition
| Sole traders and partnerships are unincorporated while private and public companies are incorporated. |
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Term
| Define a transnational corporation. |
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Definition
| A transnational (multinational) corporation is a company that has branches in many different countries. |
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Term
| What is the market share of a business? |
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Definition
The market share of a business is a measure of the amount of industry sales a business contributes to the total amount of industry sales.
The market share is a strong indication of the performance of a business within it's industry/market. |
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