AOS 1 UNIT 3 BUS TYPES OF BUSINESSES AND BUSINESS OBJECTIVES

STUDY

Sole Trader

A business structure owned and run by a single person, responsible for all financial decisions and operations.

Unlimited Liability

The owner is personally liable for all the business’s debts, which could lead to loss of personal assets.

Partnership

A business structure comprising two or more individuals, typically limited to a maximum of 20 partners with similar liability concerns as sole traders.

Incorporation

The process of forming a company as a separate legal entity, regulated by the Commonwealth Corporations Act 2001.

Private Limited Company

A company structure in Australia that requires at least one shareholder and allows a maximum of 50 non-employee shareholders.

Public Listed Company

A company that has its shares listed on the Australian Securities Exchange, allowing public buying and selling of shares.

Social Enterprise

A business model that aims to fulfill social needs while producing goods or services for the market, focusing on community or environmental goals.

Government Business Enterprise (GBE)

A publicly owned business that engages in commercial activities aimed at profit generation, functioning like private companies.

Business Objectives

Goals set by a business to give direction, increase the likelihood of success, and ensure stakeholder efforts are aligned.

Market Share

The proportion of total sales within an industry that a business holds, often compared with competitors.

Efficiency vs. Effectiveness

Efficiency is about using resources well to maximize output, while effectiveness measures success in achieving business objectives.