Simple & Short – Prelim Business Studies Notes

Resource Description

There you go short and simple business notes for prelim students

Nature of Business
Role of Business

Produces goods and/or services to comply with customer demand.
Businesses help generate:
Profit
Employment
Choice
Innovation
Entrepreneurship
Wealth Creation
Quality of Life

Types of Business

Classification of Businesses

Size
Small = less than 20
Medium = 20 – 199
Large = more than 200

Geographical Spread
Local
National
Global

Industry Sector
Primary; raw materials; eg – mines, farming
Secondary; producing using materials; eg – car manufacturing
Tertiary; services; eg – transport, hairdressing
Quaternary; knowledge services; eg – bank, schools
Quinary; Home-activity services; eg – movies, restaurant, hotel

Legal Structure

Sole Trader
Only One Owner
Unincorporated
Unlimited Liability; owner responsible for all debt

Partnership
Between 2 and 20 owners
Unincorporated
Unlimited Liability

Private Company
Incorporated; separate legal entity from owners
Limited Liability
Has ‘Pty Ltd’ in its name
May not enter the stock exchange

Public Company
Incorporated
Limited Liability
May enter the stock exchange

Factors Influencing Choice of Legal Structure
Size
Ownership
Finance