Business Essay

1014 WordsMar 5, 20145 Pages
Business Notes General P1 discusses the type of business structure • Classification by geographical spread o Local (has a very restricted geographical spread; it serves the surrounding area, tends to be SME’S) o National (one that operates within just one country, eg. Coles, sports girl, David Jones) o Global (commonly referred to as a Transnational Corporation (TNC), a large business that operates partially owned or wholly owned businesses in other countries eg. Coca cola, maccas, Toyota, apple) • Classification by industry type o Primary (includes all those business in which production is directly associated with natural resources, provides 60% exports eg. Farming, mining, fishing, forestry) o Secondary (involves taking raw material and making it into a finished or semi-finished product eg. Steel and car manufacturing) o Tertiary (involves performing a service for other people, eg. Doctors, dentists, museums, food) ß Quaternary (involves services like the transfer and processing of information and knowledge eg. Education, telecommunications, finance, property) ß Quinary (includes all services that have traditionally doe at home eg. Cleaning, child-care, hospitality, tourism) • Classification by legal structure o Unincorporated (include sole traders and partnerships where the business entity ad the owner are one and the same, most common legal structure for small businesses) ß Sole trader (a business operated and owned by one person, the owner provides finance and makes all the decisions, easy to establish, has unlimited liability responsible for all debts, must register businesses name if different from owner name) ß Partnership (a legal business structure that is owned and operated by between 2-20 people, o Incorporated (includes private and public companies, the business exists in its own right, business continues to operate with or

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