Business Revision

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Business Revision-

1. For-profit and not-for-profit organizations and their features;

Key concepts- Businesses are organizations that provide goods and services to fulfill our needs and wants and in return most businesses seek to make a profit. Not-for-profit organizations may make a profit but the main reason they exist is to pursue a social objective, such as helping others. Profit: A business makes a profit when the income earned (revenue) is greater than the costs of production (expenses). Business: It is an organization that provides goods and/or services to consumers in order to make a profit.

A business- a for-profit organization: Mowing neighbor’s lawns, baby-sitting, washing windows or setting up a stall at a local community market. A part time basis to work in a local corner store or fast-food outlet.

The main activities of a business: Finished goods- are those that are ready for customers to buy and use.

Not-for-profit organizations: operate to provide social, educational, religious or other benefits. Non-for-profit organizations may be run by both paid employees and volunteers. Not-for-profit includes the Salvation Army, The Smith Gamily and World Vision. Some organizations make profit as well. Similarities and differences between for-profit and not-for-profit organizations: Both must ensure that finances are available to allow the organization to survive and pay its bill and both must be accountable for their actions.

2. Distinctions between small, medium-sized and large businesses;

Key concept- Businesses come in many different sizes-small, medium, large or somewhere in between.

SME’s – (small-medium sized enterprises) with less than 200 full time equivalent employees and or $10 million turnover (businesses total sales).

A number of measurements can be used to determine the size of a business including: - The number of employees- those who are hired to do work for the organization - The number of owners(of the business)- for example, a sole trader is a type of business that has one owner - Market share- the proportion of total market sales the business has compared to competitors - The legal structure

-The owner makes most management decisions, such as who to hire, what to produce, how to advertise a product - The owner provides most of the capital (finance)
Market share: Refers to the businesses share of the total industry sales for a particular product. Distinctions between small, medium-sized and large businesses:

|Characteristics |Small |Medium-sized |Large | |Business type |Corner store |Services club |Woolworths | | |Local mechanic |Motel/Hotel |Quanta’s | | |Hairdressing salon |Engineering factory |National Australia Bank | |Number of employees according to |Less than 20 employees |20-199 employees |200 or more employees | |the Australian Bureau of | | | | |Statistics (ABS) business | | | | |register definition | | | | |Type of ownership |Independently owned and operated |Owned and operated but a few |Owned usually by thousands of | | |by usually one or two people |people and private shareholders |public shareholders |...
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