Types of Business - Nature of Business

How can a business be classified by size?

• By the color of its logo

• By the type of products sold

• By the number of employees

• By the CEO's age

What is a characteristic of a small business?

• Operates globally

• Less than 20 employees

• More than 200 employees

• Has unlimited shareholders

What defines a micro business?

• More than 50 employees

• Operates in multiple countries

• Less than 5 employees

• Has a large market share

Which of the following is a characteristic of a global business?

• Operates across the world

• Operates in a single town

• Has less than 10 employees

• Sells only locally made products

What sector does farming belong to?

• Primary industry

• Tertiary sector

• Quinary sector

• Secondary industry

What is the main focus of the quaternary sector?

• Manufacturing

• Hospitality

• Natural resources

• Information transfer

What does it mean when a business is 'Incorporated'?

• It cannot sell shares

• It has unlimited liability

• It is owned by a single person

• It is a separate legal entity from the owners

What is a characteristic of a sole trader?

• Has to have PTY LTD at the end of the business name

• The business ends when the owner dies

• Can have up to 50 shareholders

• Is a separate legal entity from the owner

What is the liability type for a private company?

• Unlimited liability

• Limited liability

• No liability

• Full liability

Why might businesses choose to go global?

• To increase sales and potentially profits

• To decrease market share

• To serve only local customers

• To limit their operations