Types Of Businesses: Classification Quiz

Questions and Answers

What four sizes do businesses come in?

Micro, small, medium, and large.

How is the size of a business determined?

By measurements such as the number of employees, number of owners, and amount of revenue earned.

How many employees does a micro business have?

5 or less employees.

How many employees does a small business have?

5-19 employees. Signup and view all the answers

How many employees does a medium business have?

20-199 employees. Signup and view all the answers

Define SMEs and what do they stand for?

Small and medium-sized enterprises (SMEs) have fewer than 200 employees and/or less than $10 million in annual turnover. Signup and view all the answers

What role do SMEs play?

SMEs play an important role in the Australian economy and satisfy consumers' needs. Signup and view all the answers

How many employees does a large business have?

200 or more employees. Signup and view all the answers

How many micro businesses have no employees?

Almost 1.5 million micro businesses are non-employing. Signup and view all the answers

What is the classification by location of businesses?

Businesses can be classified as local, national, or global. Signup and view all the answers

What is the geographical spread?

The presence of a business and the range of products across the suburb, city, state, or country. Signup and view all the answers

Define the location of a business in terms of local.

It serves the surrounding area and is typically small to medium in size. Signup and view all the answers

Define the location of a business in terms of national.

A national business operates within one country and develops its product range and reach. Signup and view all the answers

Define the location of a business in terms of global.

A global business has branches in many different countries. Signup and view all the answers

What is the classification by industry?

Businesses are classified based on the type of activity they undertake. Signup and view all the answers

Define the primary industry.

Involves the collection of natural resources and is directly linked to the land. Signup and view all the answers

Which industry is known as the 'food bowl'?

The primary industry. Signup and view all the answers

Why is the primary industry essential to our economy?

It provides all of our food requirements and produces raw materials. Signup and view all the answers

Define the secondary industry.

Includes businesses that take raw materials from the primary sector and process them into finished products. Signup and view all the answers

Study Notes

Types and Sizes of Businesses

Businesses can be classified into four sizes: micro, small, medium, and large.
Business size is determined by metrics such as the number of employees, number of owners, and revenue generated.

Employee Ranges for Business Sizes

A micro business employs 5 or fewer individuals.
A small business has 5 to 19 employees.
A medium business employs between 20 to 199 individuals.
A large business has 200 or more employees.
About 1.5 million micro businesses in Australia do not employ any staff.

Small and Medium-sized Enterprises (SMEs)

SMEs stand for Small and Medium-sized Enterprises.
Defined as firms with fewer than 200 full-time equivalent employees and/or less than $10 million in annual turnover.
SMEs are crucial to the Australian economy, fulfilling significant consumer needs.

Classification by Location

Businesses can be categorized as local, national, or global based on their geographical spread.
Geographical spread refers to the presence of a business and its product range across local, state, national or global levels.

Local Businesses

Local businesses serve surrounding areas and generally offer limited product ranges, often used by nearby consumers.
Most local businesses are typically small to medium in size.

National Businesses

National businesses expand their product range and service areas within a single country.
Example: Bank of Queensland, with over 160 branches, is one of Australia’s significant regional banks.

Global Businesses

Global businesses, also known as multinational corporations, operate in multiple countries.
They do not see national borders as trade barriers.
Example: McDonald's Corporation, a leading global food service retailer.

Classification by Industry

Industries group businesses based on the types of activities they undertake, including primary, secondary, tertiary, quaternary, and quinary sectors.

Primary Industry

The primary industry involves businesses that collect natural resources directly linked to the land, such as farming, mining, fishing, grazing, and forestry.
This sector is known as the "food bowl" due to its major share in export income for Australia.
While only 7.6% of the labor force is employed in this sector, it plays a vital role by providing essential food and raw materials.

Secondary Industry

The secondary industry comprises businesses that process raw materials from the primary sector into finished or semi-finished products.

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Description

Test your knowledge of the various sizes of businesses with this informative quiz. Learn about micro, small, medium, and large businesses, as well as how their sizes are determined. This quiz will help reinforce your understanding of the key classifications in the business sector.