Nature of Business - Types of Business - Classification of businesses

Classification by local, national and global

Geographical spread is (p25) _______________________________________________________________
________________________________________________________________________________________
A local business has a restricted geographical spread, it serves the surrounding area and does not have the
resources to offer a range of products to another suburb or town. The majority of local businesses are SME.
Two examples of local business would be:
1) ___________________________________________________
2) ___________________________________________________
A national business is one that (p26) _________________________________________________________
________________________________________________________________________________________
Example1 : David Jones is not only Australias oldest department store, but also the oldest department store in
the world still trading under its original name. Its sales revenue for the 2010 financial year was $1.08 billion.
Two other examples of national businesses are found on p26. Please copy down one of these examples
below.
_____________________________________________________________________________________
_____________________________________________________________________________________
A global business, otherwise referred to as a __________________________________________________
__________ (TNC) is a large business with a home base on one country that operates partially owned or
wholly owned businesses in other countries. For these companies, national borders do not represent barriers
to trade - they are merely lines on a map.
Three examples of TNCs are:
1) ___________________________________________________
2) ___________________________________________________
3) ___________________________________________________
TASK: Summarise the four reasons businesses expand to serve a national or global market in the below table
(p27-28)
1) Increase in sales

2) Desire to increase profits

3) Increase in market share

4) Global consumers

QUESTIONS: Complete Revision Q1, 2, 3 (full sentences please). Extension Q2

Nature of Business - Types of Business - Classification of businesses

Classification by Industry Sector

An industry (p30) consists of ________________________________________________________________
________________________________________________________________________________________
TASK: Copy out Figure 2.6: The Three Main Industry Sectors (p31) in the space below.

TASK: Copy out Table 2.2: Industry size (p30) in the below table.
Industry Sector

Private sector % of all firms by

industry

% of total employment

TASK: Write down the definitions for each of the five industry sectors (p31-32) in the below table.
Industry Sector

Definition

QUESTIONS: Complete Revision Q1, 2, 4 (copy out the table please).