Types of Business Lesson 5 BUSINESS

Transcript:Types of Business Lesson 5 BUSINESS:
Types of Business Lesson 5 BUSINESS CLASSIFICATIONS Business organisations can be classified in a number of different ways. The key classifications include: Size: often in terms of the number of people the business employs. Work Type: primary, secondary, tertiary, quaternary and quinary. Industry Sector: mining, manufacturing, agricultural, construction, financial. Legal Structure (Business Ownership): sole trader, partnership, company. SIZE OF BUSINESS ENTERPRISES Small Business Enterprises Usually sole trader and partnerships. Common in the following areas: farming, retailing and building, professions such as medicine, dentistry, law and accounting. Non-manufacturing firms such as retail outlets, which employ less than 20 employees. Manufacturing firms - less than 100 employees. Independently owned and managed. Small share of the market Financed by the owner. About 96% of businesses in Australia are small, and employ about half of the workforce. Medium Business Enterprises Usually public companies. One with 20 to 200 employees. Mainly in personal services and manufacturing. Large Business Enterprises Often public companies. One that employs more than 200 people. Found in the public sector, eg Telstra In the private sector - two largest private enterprise companies are Coles-Myer and BHP. ‘Big Business’ – that small number of companies that employ the other half of the workforce. Multinationals – based here, but operating overseas. Transnationals – internationally based and owned. WORK TYPE Primary Sector Provides the raw materials on which other economic activity depends Involves the exploitation of raw materials (coal mining, drilling for oil), the growth of food and textile crops, forestry, fishing and quarrying. Some of these resources are renewable, some are non-renewable Involves low value added industries - has an environmental consequence, particular during resource exhaustion Secondary Sector Manufacturing - "Manufacturing has always been a necessary human activity ever since the first fashioning of a plough or spear from the branch of a tree" - Adam Smith. Adds more value by processing or both processing and combining raw materials. Capital or basic industries produce equipment for other industries. Assembly industries ('screw-driver industries') Consumer industries produce goods for direct sale to consumers. Tertiary Sector Service sector: produces no physical 'product' Historically the largest single group has been servants and slaves - today includes fast food operatives and geriatric health care. Not necessarily highly paid - One of major examples is Tourism. Quaternary Sector Originally Sub-set of tertiary sector - Reliance on high-skill labour. Includes wholesaling and advertising. Information production and management. Quinary Sector Not