U3 AOS1 - Business Foundations

Sole Trader

Is a business structure that is owned and operated by one individual.

Partnership

Is a business structure that is owned by two to 20 owners.

Private Limited Company

Is an incorporated business structure that has at least one director and a maximum of 50 shareholders

Public Listed Company

Is an incorporated business that has an unlimited number of shareholders and lists and sells its shares on the ASX.

Social Enterprise

Is a type of business that aims to fulfil a community or environmental need by selling goods or services.

Government Business Enterprise

Is a business that is owned and operated by the government.

Business Objectives

Are the goals a business intends to achieve.

Profit

Is the total revenue earned minus the total expenses incurred

Market Share

Is a business’s percentage of total sales within an industry

To fulfil a market need

Is when a business fills a gap in the market, which involves addressing customer needs that are currently unmet or underrepresented by other businesses in the same industry

To fulfil a social need

Is improving society and the environment through business activities.

Efficiency

Is how productively a business uses its resources when producing a good or service

Effectiveness 

Is the extent to which business achieves its stated objectives

Stakeholders

Are individuals, groups, or organisations who have a vested interest in the performance and activities of a business.

Owners

Are individuals who establish, invest, and have a share in a business, often with the goal of earning a profit from its operations.

Managers

Are individuals who oversee and coordinate a business’s employees and lead its operations to ultimately achieve the business’s objectives.

Employees

Are individuals who are hired by a business to complete work tasks and support the achievement of its objectives.

Customers

Are individuals or groups who interact with a business by purchasing and utilising its goods and services.

Suppliers

Are individuals or groups that source raw materials, component parts, and processed materials and sell them to a business for use in the production of its goods and services.

General Community

Is the individuals and groups who are impacted by a business’s operations and decisions.