Types of Businesses
The simplest legal structure for a business, owned by one person.
Sole trader/proprietorship.
This is the main goal of most businesses and represents financial gain after expense.
Profit
The first stage of the business life cycle.
Establishment.
A business that operates in multiple countries.
Global business (transnational corporation).
Name two non-financial roles of a business in society.
Employment and innovation.
This is a common challenge during the growth stage.
Managing increased demand and expanding operations.
Name three ways to classify businesses.
Size, legal structure, industry sector, geographical spread.
This refers to the ability of a business to satisfy consumer needs and wants.
Providing choice.
This stage may involve restructuring or innovation to avoid decline.
Post-maturity.
This industry sector includes the knowledge and intellectual component of the economy, encompassing research and development, information services, education, consulting, and other knowledge-based industries.
Quarternary sector.
This term refers to the improvement in material and non-material living standards.
Quality of life.
Define voluntary and involuntary cessation.
Voluntary = owner choice vs.
forced closure (e.g., due to bankruptcy)?