2328780
Description
Flashcards by Chanel Cutelli, updated more than 1 year ago
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Created by Chanel Cutelli
about 9 years ago
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| Question | Answer |
| Classification of Business: Size | - Micro: 5 or fewer employees - Small: fewer than 20 employees - Medium: 20 - 199 employees - Large: 200 or more employees |
| Classification of Business: Local, National, Global | - Local: serves the surrounding areas. Small-medium e.g. hairdresser. - National: Operating in one country e.g. Sportsgirl. - Global: Based in one country and their goods and services are produced and sold in a number of countries e.g. Coca-Cola |
| Industry | Primary: Production is associated with natural resources e.g. farming Secondary: The raw materials and the process to finish it e.g. car manufacturing. Tertiary: provides a service e.g. teacher. Quaternary: Transfer & process of information e.g. finance. Quinary: services performed in the home e.g. child care |
| Classification of Business: Legal Structure | - Sole Trader: unincorporated,one owner. Responsible for all decisions. - Partnership: 2-20 owners. Unincorporated and Unlimited Liability - Private: 1-50. Owners are called shareholders. Incorporated and limited liability, has Pty Ltd after their name. - Public: listed under Australian Stock Exchange ownership open to public. Government Enterprises: Owned by Australian Public e.g Australia post |
| Proprietary Limited (Pty Ltd) | A private company has (Pty Ltd) after its name. Pty means the company is private. Ltd means the company has limited Liability. |
| Factors influencing choice of legal structure - Size: | The business may start as a sole trader. As the business enters the growth phase, investors may be bought into the company. Private company structure - protects investors through limited liability. Public company structure - allows easier access to funds. |
| Factors influencing choice of legal structure - Ownership: | Associated with control. Individuals who want to be own boss - sole trader structure. Individuals who work well with others - partnerships or private companies. |
| Factors influencing choice of legal structure - Finance | Most businesses are established with a limited amount of capital. Growth may be achieved by offering a partnership or to a private company to provide increased protection (limited liability) |
| Geographical spread | Is the presence of a business and the range to its products across a suburb, city, state or country or the globe. Eg. Local businesses. |
| Incorporated | Is the process companies go through to become a separate legal entity from the owner/s. |
| Unincorporated | business is a sole trader (1) or partnership (2). - most common as it is easiest and cheapest. |
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