Role of business quiz
What is a pop up business
A pop up business is a temporary store that a company sets up for exposure
Classification as legal structure
Unlimited liability/ unincorporated Limited liability/ incorporated Government enterprises Franchises Cooperatives
quinary industry
Services that have traditionally been performed in the home e.g childcare
quaternary industry
Services that involve the transfer and processing of information and knowledge e.g education
How can businesses be classified (4 things)
Size, geographical spread, industrial category, legal structure
SME's
Small and medium enterprises are considered together as a business sector
Capital
$$ in a SME
Why is a medium business
20-199 employees. Owned and operated by a few people and/or private shareholders. Partnership or private company. Financed by owners savings, investments by private shareholders and loans. Medium to strong market presence in a geographical region
What is a large business
200 or more employees, owned by thousands of public shareholders. Public company. Large market share, often across many countries
marketing
Advertising
Some industrial sectors
Agriculture, mining, medical, construction, financial services, fisheries, retail
Global
Also called transnational cooperation (TNC). Large businesses with a homemade in one country . Operations in other countries may be partly or wholly owned by the parent company. Employees, finances, goods, technology, information flow freely from one country to another
production
Creating new products, quality and quantity
What is a small business
Less than 20 employees, independently owned and operated by one or two people, sole trader or partnership. Financed by owners savings
What is a micro business
Less than 5 people working, mostly are just one person, most are sole traders and/or partnerships
geographical spread
Local, national, global
What are the size of businesses
Micro, small, medium, large
Local
Mostly SME's but medium enterprises are t always local
Sole traders
One person who owns the business. Small cost of registering a business. Owner is responsible for managing and financing their enterprise (capital). They receive all profits and bear all the loses
National
Operates within one country, offers a wide range of products. Often will develop from a local business
management
Organising goals. Knowing how many employees you need, how much you need for your business to run
tertiary industry
Performing a service e.g banking
finance
Planning, forecasting sales, expenses, revenue and product
Personal qualities of an entrepreneur
Prior experience as an employee in their industry, determination, risk taker, being able to set goals, seeing opportunities and taking advantage of them
Limited liability
Private company or public company where business pays companies tax on profits
primary industry
Production from natural resources
secondary industry
Production of finished or semi-finished goods e.g car manufacturing
Unlimited liability
Sole trader or partnership owners pay personable income tax. Personal assets may be used to repay business debts
Main activities of a business
management, production, marketing and finance
nature of business
producing goods and services such as profit, wealth, entrepenuership and risk, choice, income and innovation