Types Of Business

Submitted By miajin
Words: 1632
Pages: 7
Open Document
Type of business
2.1 Classification by Size
- Businesses come in four different sizes: micro, small, medium and large.
- Currently SMEs in Australia perform better than other sectors of the economy.
Micro Businesses
- A micro business employs fewer than five people (including the owner).
- They represent 82 per cent of all non-manufacturing small businesses
- 58 per cent are sold traders and partnerships
- they employ 31 per cent of all people in the private sector
- they are dominated by women, young people self-employed and people retrenched 紧缩开支from previous employment - 54 per cent have no employees.
2.3 Classification by geographical spread
Geographical spread is the presence of a business and the range of its products across a suburb, city, state or country or the globe.
Local Business
- A local business has a very restricted geographical spread; it services the surrounding area.
- Used by consumers who live nearby.
- tend to be small to medium in size.
Qualitative measures for local businesses
Qualitative measures are based on personal observation about the business:
- owner makes most management decisions
- owner provides most of the capital (finance)
- business has little control within the market
- independently owned and operated
- the business is locally based.
National Business.
- A national business is one that operates within just one country.
- As it expands a national business will eventually run out of new customers to sell to.
- If it continues to expand it can decide to export and sell products overseas.
- GOOGLE National Australian Businesses.
Global
A global business or Transnational Corporation (TNC), is a large business with a home base in one country that operates partially owned or wholly owned businesses in other countries.
Reason why businesses expand
- Increase in sales – the business opens new stores in new location.
- Desire to increase profits – sales grow if the businesses sells to a large market.
- Increase in market share – as the business grows more people will buy from it rather than its competitors.
- Global consumers – the media and internet encourage people around the world to purchase the same products.
Summary
- Businesses can be classified as small, medium or large.
- Their classification will depend on such things as number of employees, market share, ownership and who makes the decisions.
- A micro business (usually a SOHO) employs fewer than five people (including the owner).
- Businesses can also be classified as local, national or global according to their geographical spread.
- A local business has a very restricted geographical spread; it serves its surrounding area.
- A national business operates in just one country.
- A global business — a transnational corporation (TNC) — is a large business with a home base in one country that operates partially owned or wholly owned businesses in other countries.
- The four main reasons businesses expand to serve national and global markets are increase in sales, desire to increase profits, increase in market share, global consumers.
2.4 Classification by Industry Sector
- An industry consists of businesses that are involved in similar type of production.
Primary Industry
- Primary industry includes all businesses in which production is directly associated with natural resources.
- Examples: farming农事, mining, fishing, grazing放牧 and forestry林业.
- 60 per cent of all our exports come from these industries.
Secondary Industry
- Secondary industry involves taking a raw material and making it into a fished or semi-finished product.
- Example – iron ore (mining) is turned to steel (semi-finished product) and used in manufacturing of cars (finished product)
Tertiary Industry
- Tertiary industry involves performing a service for other people.
- Examples - retailers, dentists, solicitors, banks, museums and health workers.
- This sector has grown rapidly and is divided into two other sectors: 1. Quaternary industry includes services that
Show More

Related Documents: Types Of Business

Chapter 2 Essay

N. Gregory Mankiw PowerPoint® Slides by Ron Cronovich CHAPTER 2 The Science of Macroeconomics © 2010 Worth Publishers, all rights reserved SEVENTH EDITION MACROECONOMICS In this chapter, you will learn: …the meaning and measurement of the most important macroeconomic statistics:  Gross Domestic Product (GDP)  The Consumer Price Index (CPI)  The unemployment rate CHAPTER 2 The Data of Macroeconomics 2 Gross Domestic Product: Expenditure and Income Two definitions:  Total expenditure…

Words 2494 - Pages 10

Chapter 2 Essay

Chapter 2: Managing your fear of speaking 1. Communication anxiety: those unpleasant feelings and fears you may experience before or during a presentation -turn the nervousness into positivity and that it shows that you care -even professionals feel the same way, but they learn how to turn the butteries to fly instead 2. Steps in controlling communication anxiety 1. Understanding it 2. Managing it -the goal is not to get rid of the anxiety, but to help you control your butterflies and channeling…

Words 826 - Pages 4

Essay on Chapter 2

Pranta Barua Period- 1 Vocabulary Chapter- 2 Absolute Value Function- An absolute value function is a function that contains an algebraic expression within absolute value symbols. Recall that the absolute value of a number is its distance from 0 on the number line. The absolute value parent function, written as f(x) = |x| Constant of Variation- The ratio between two variables in a direct variation or the product of two variables in an inverse variation. In the direct variation equations = k and y…

Words 776 - Pages 4

Chapter 2 Essay

Chapter 2 Creating Text and Gradients Objectives • • • • • • • Create and format text Flow text into an object Position text on a path Create colors and gradients Apply colors and gradients to text Adjust a gradient and create a drop shadow Apply gradients to strokes Create and Format Text To create type: • Select the Type tool • Click the artboard and start typing or click and drag the Type tool to create a text box. Create and Format Text • Use the Vertical Type tool to create vertical type…

Words 1169 - Pages 5

Chapter 2 Essays

FINANCIAL ACCOUNTING Tools for Business Decision-Making KIMMEL  WEYGANDT  KIESO  TRENHOLM  IRVINE CHAPTER 2: A FURTHER LOOK AT FINANCIAL STATEMENTS STUDY OBJECTIVES SO 1: Identify the sections of a classified statement of financial position. SO 2: Identify and calculate ratios for analyzing a company’s liquidity, solvency, and profitability. SO 3: Describe the framework for the preparation and presentation of financial statements. Classified Statement of Financial Position • A classified…

Words 1205 - Pages 5

Essay on Chapter 2

updating the technology needed to enforce the “strict” company internet policy. By doing this it would allow the company to determine which sites can be allowed on the work computers, and allow for greater control over where the employees go. 2. Analyze Rio Grande’s culture. In addition to the expressed cultural values and beliefs, what other subconscious values and beliefs do you detect? Are conflicting values present? When values are in conflict, how would you decide which ones take precedence…

Words 959 - Pages 4

Chapter 2 Essay

The Europeans have been coming to the Americas since the late 1400s. As time passed, the big nations in the European continent ended up colonizing the Americas. The big nations that included France, England, Portugal, Spain, and the French decided the Americas were useful for more than just colonization; they were useful for resources and new ideas. There were trade between the Natives and Europeans that caused big epidemic problems, colonization that led to new races, different economical ideas…

Words 1190 - Pages 5

Chapter 2 Essay

other auto sellers. F is the accidental supply interruptions from fires, floods, etc. RC is the costs of regulatory compliance. Pe is the expected future price of the Prius. Ta is the adjustment time period. T/S involves the taxes on or subsidies. 2. Gasoline prices above $3 per…

Words 696 - Pages 3

Chapter 2 Essay

careful diagnosis using The ARDM (A=acquiring, R=rewarding, D=developing, M=maintaining and protecting). This model with a strategic focus can help operating managers focus on a set of relevant factors; you can see the whole picture or parts of it. 2. The productivity of the workplace is essential for the success of an organization. What HRM activities and programs can impact productivity? Specific activities and practices can improve individual performance and consequently…

Words 977 - Pages 4

Essay on Chapter 2 Summary

Chapter 2, which is titled Database Types, is about the different types of databases and the different types of data that databases can store. The book defines database as a tool that stores data, and lets you create, read, update and delete the data in some manner. I thought that this definition was very broad at first but after reading more it began to make sense. Chapter 2 also discusses what kinds if databases are most common. I learned that the relational database is by far the most popular…

Words 335 - Pages 2