business foundations unit 3 area 1

classifying business

size, sector, business activity

public sector

operated by the government aka (government business enterprise GBE)

private sector

operated by private individuals and companies usually for the purpose of making profit.

made up of sole traders, partnerships, companies

industries

classification of groups of businesses related to particular goods or services they produce

primary industry

concerned with extracting resources directly from nature eg. OZ minerals Ltd

secondary industry

raw materials are turned into finished or semi finished products eg. Kellogg (Aust.)

tertiary industry

provision of services (wholesaling, retailing, transport) eg. Optus

sole traders

one person who owns and runs a business (provides all finances, makes all decisions and responsibility for the business)

partnership

owned by two or more people, can be set up orally or in writing

incorporation

processes that business go through to become a registered company and a separate legal entity from the owner/shareholder

limited liability

shareholders in company will not be held in personally responsible with debt