AOS 1 Flashcards
-types of business - business objectives -stakeholders -management responsibility -CSR (31 cards)
what is a business
a business is an organisation that aims to produce goods and/or services to satisfy the needs & wants of consumers with the aim of making a profit
what is capital
a large sum of peony which is used to start a business
unlimited liability
refers to when the owner of the business is personally responsible for any debts incurred by the business and therefore there personal assets are at risk
limited liability
a shareholder can only lose the amount they have paid for in their shares and therefore there personal assets re not at risk
what are the types of businesses?
- sole trader
- partnership
- private limited company
- public listed company
- social enterprise
- government business enterprise
sole trader
a type of business structure owned and operated by a single owner. They may have more then 1 employee however the sole owner of the business provides the finance and makes the decisions about the business
partnerships
a type of business structure that involves a number of people who can run and carry on a business. A partnership can have 2-20 owners and aims to make a profit.
private limited company
a types of business structure that is an incorporates business that is owned by up to 50 private shareholders. private limited companies are privately owned and are not listed on the stock exchange.
define company
a company is an independent legal entity that is able to conduct business in its own right
public listed company
a type of business structure that are privately owned and listed on the public stock exchange and can have an unlimited number of shareholders. This means the public can purchase shares and become shareholders in exchange for money.
examples of businesses for each structure
sole trader= local florist such as Sarah’s florists somerville
partnership= Roberts beckwith
private limited companies= cotton on group, Linfox
public listed company= Woolworths, NAB
social enterprise= thanks you
government business enterprise= Australia post
social enterprise
a type of business structure that exists primarily to fulfil a vision that benefits the public or community rather then shareholders
government business enterprise (GBE)
a type of business structure that are run like companies however are owned & operated by the government. A GBE aims to make a profit and are run at both state and federal level.
what are business objectives?
refers to a desired goals, outcome or specific result that an organisation intended to achieve in a specific period of time
what is a strategy?
an action that an organisation takes to achieve specific objectives
incorporation
process of establishing a business
effectiveness vs efficiency
effectiveness= the degree to which an organisation has achieved its states objectives
efficiency= refers to how well an organisation has used its resources to achieve objectives
what are the business objectives?
- to make a profit
- increase market share
- fulfilled a maker or social need
- meet shareholder expectations
define market share
the proportion of sales in a market controlled or owned by a particular business or product
define profit
the amount of money remaining once expenses have been paid
revenue-expenses= profit
shareholders
are partial owners of the organisation having purchased shares in the company
- have the expectation to make a return on their investment through dividends & capital gains
capital gains
the value of the increases
dividends
shares in the company profit
stakeholders
are individuals or groups of people who interact with the business and have a vested interest in its activities
