Studied by 6 people
sole trader
a business that is owned and operated by one person often with the primary objective of making a profit.
partnership
a type of business that is owned by between two and 20 partners.
Political interference
________ can cause inefficiencies in the way GBEs are run.
Limited liability, meaning the owners of the business are treated as a separate legal entity
important if the business becomes insolvent or declares bankruptcy
social enterprise
A(n) ________ is a business that produces goods or services to sell to consumers, but exists to benefit society rather than the owners.
Provides healthy competition to businesses operating in the private sector
potentially leading to lower prices for consumers
Pty Ltd
A private company is identified by the letters ‘ ________ after their trading name.
Run just like a normal business, however operates with the primary objective to fulfil a social need such as
Providing employment opportunities for the disadvantaged Contributing to other causes such as addressing societal issues e.g
private limited company
an incorporated business that is owned by between 1 and a maximum of 50 shareholders.
social enterprise
a business that produces goods or services to sell to consumers, but exists to benefit society rather than the owners.
Directors owners
________ can still be held personally liable if found to have behaved in a fraudulent manner.
separate legal entity
Limited liability, meaning the owners of the business are treated as a(n) ________- important if the business becomes insolvent or declares bankruptcy.
Government Business Enterprise
a commercial entity that is owned and operated by the government.
public company
A(n) ________ has its shares freely traded on the Australian Securities Exchange (ASX)
More costly to establish when compared to a sole trader or partnership
accountancy and legal fees etc
key characteristics of a government business enterprise
the main purpose of a GBE is to carry out the policy of the government through the delivery of paid for services to the communtiy
public listed company
an incorporated business that will have a minimum of 1 and no maximum amount of shareholders, with shares being available for purchase by the public
key characteristics of a sole trader
relies on skills, talents and experience of the owner to be successful
owned by one person
profits all go to the owner
advantages of being a sole trader
owner has complete control over the running of the business
can make decisions based on their best interests
disadvantages of a sole trader
subject to unlimited liability
owner is personally responsible for all business debts
owner can be sued for business issues
key characteristics of a partnership
all partners share in risks and rewards of operating the business
multiple owners
advantages of a partnership
greater pool of knowledge, experience and talent available to run the business
disadvantages of a partnership
can be hard gaining total agreement from all partners when trying to implement change or make decisions in the business
key characteristics of a private limited company
shares in a private company are only offered to those people the business wishes to have as part owners, and are not traded on securities exchange
a private company is identified by the letters ‘Pty Ltd’ after their trading name
advantages of a private limited company
limited liability - meaning the owners of the business are treated as a separate legal entity - important if the business becomes insolvent or declares bankruptcy
disadvantages of a private limited company
more costly to establish when compared a to a sole trader or partnership - accountancy and legal fees etc
directors/owners can still be held personally liable if found to have behaved in a fraudulent manner
disadvantages of a pri
key characteristics of a public listed company
a public company has its shares freely traded on the Australian Securities Exchange (ASX).
It is identified by the letters ‘Ltd’ after it’s trading name
advantages of a public listed company
limited liability
easier to attract public finance to assist with business growth often through further share issues
disadvantages of a public listed company
expensive to establish
greater public scrutiny as financial reports have to be published annually
key characteristics of a social enterprise
run just as a normal business, however operates with the primary objective to fulfil a social need such as:
providing employment opportunities for the disadvantaged
contributing to other causes such as addressing societal issues
eg, eradicating homelessness, environmental causes etc
advantanges of a social enterprise
being a social enterprise can provide a point of difference from other competing businesses to help attract customers
disadvantages of a social enterprise
it can be difficult trying to focus on both social and financial objectives
advantages of a government business enterprise
provides healthy competition to businesses operating in the private sector - potentially leading to lower prices for consumers
disadvantages of a government business enterprise
political interference can cause inefficiencies in the way GBE’s are run
liability
the state of being legally responsible for something
unlimited liability
owner is responsible for any and all debts / legal issues
shares
one of the equal parts into which a company's capital is divided, entitling the holder to a proportion of the profits
shareholders
a person or institution that has invested money in a corporation in exchange for a “share” of the ownership
Pty Ltd
Proprietary limited - a private listed company
securities exchange
an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments
incorporated
a company formed into a legal organisation
limited liability
owners are treated as separate legal entities to the business
legal entity
an individual, company, or organisation that has legal rights and obligations
limited liability
insolvent
an inability to pay debts owed
bankruptcy
declared by law as unable to pay their debts
Provides healthy competition to businesses operating in the private sector
potentially leading to lower prices for consumers
social enterprise
A(n) ________ is a business that produces goods or services to sell to consumers, but exists to benefit society rather than the owners.
Run just like a normal business, however operates with the primary objective to fulfil a social need such as
Providing employment opportunities for the disadvantaged Contributing to other causes such as addressing societal issues e.g
partnership
A(n) ________ is a type of business that is owned by between two and 20 partners.
sole trader
A(n) ________ is a business that is owned and operated by one person often with the primary objective of making a profit.
Limited liability, meaning the owners of the business are treated as a separate legal entity
important if the business becomes insolvent or declares bankruptcy
separate legal entity
Limited liability, meaning the owners of the business are treated as a(n) ________- important if the business becomes insolvent or declares bankruptcy.
More costly to establish when compared to a sole trader or partnership
accountancy and legal fees etc
Political interference
________ can cause inefficiencies in the way GBEs are run.
public company
A(n) ________ has its shares freely traded on the Australian Securities Exchange (ASX)
Pty Ltd
A private company is identified by the letters ‘ ________ after their trading name.
Directors owners
________ can still be held personally liable if found to have behaved in a fraudulent manner.
Government Business Enterprise
A(n) ________ is a commercial entity that is owned and operated by the government.
private limited company
A(n) ________ is an incorporated business that is owned by between 1 and a maximum of 50 shareholders.
social enterprise
Being a(n) ________ can provide a point of difference from other competing businesses helping to attract customers.
Note 
Flashcard (70)