business 2014 exam 5

  1. A workable definition of small business
    requires both qualitative and quantitative components. What are the qualitative and quantitative criteria most often used to define “small business”? (Note: I don’t just mean in Australia!)
    Qualitative: independently owned and operated, decision making functions belong to the owner-manager, owner-manager contributes most/all of the operating capital, business only has a small share of the market in which it operates.

    Quantitative: employs less than 20 individuals (Aus only) up to 300 in other countries, annual value, maximum assets and turnover,  legal structure and wages and salaries expenditure.
  2. What is the definition of small business used by the Australian Bureau of Statistics (ABS)?
    • Is a business that employs less than 20
    • people.
  3. what is a micro business?
    Business employing less than 5 people.
  4. what is a non-employing business?
    • Sole proprietorship and partnerships
    • without employees.
  5. what is a home based business?
    • a business that operates from a residential
    • property
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business 2014 exam 5
tutorial 5 (topic 4)