Unit 3 AOS1 - Business Foundations

Private Sector

Owned by private individuals, groups or institutions

Public Sector

Owned by the government

Unlimited Liability

Business owners are fully responsible by law (if their business fails) to the extent of their personal assets.

Limited Liability

Business owners are only personally responsible by law to the level of their original investment in the business.

Sole Trader

A business structure owned and operated by one person. Private sector. Unlimited liability

Partnership

A type of business owned by 2-20 owners. Private sector. Unlimited liability.

Company

A company is a separate legal entity owned by shareholders who have limited liability, run by directors and has perpetual succession. Private sector. Limited liability.

Public Company

A public company has no upper limit to the number of shareholders. Shares are openly traded on the Australian Securities Exchange (ASX). Limited liability.

Social Enterprise

Private sector business that aims to make a profit and improve the community.

Government Business Enterprise (GBE)

A profit driven business that is owned by but managed separately from the government.​ Public sector.

Business objective

A goal that the business wants to achieve within a specified period of time. ​

Profit

Money left after expenses are deducted from revenue earned.​

Market Share

the proportion of sales that a business or product has compared to the total sales in the industry, expressed as a percentage.​

Efficiency

How well a business uses its resources (time, raw materials, labour, machinery, technology etc.) in producing a good or service

Effectiveness

The extent to which a business achieves its stated objectives.​

Fulfil a market need

Business aims to provide goods or services that fill a gap in the market and therefore meet customer demand.

Social need

Relates to improving the community and environment through its business activities.​