Chapter 1 A - B

Question 1

Sole Trader

Answer 1

A sole trader is a business structure that is owned and operated by one individual

Question 2

Unincorporated

Answer 2

Is a legal status of a business whereby the business owner and the business are viewed as the same legal entity

Question 3

Unlimited liability

Answer 3

Is the personal legal responsibility a business owner has for an unincorporated business’s debt

Question 4

Debt

Answer 4

Is the amount of money that an individual or business owes

Question 5

Partnership

Answer 5

A partnership is a business structure that is owned by two to twenty owners

Question 6

Partnership agreement

Answer 6

A partnership agreement outlines the roles and expectations of the partners in a business

Question 7

Private limited company

Answer 7

A private limited company is an incorporated business structure that has at least one director and a maximum of 50 shareholders

Question 8

Public listed company

Answer 8

A public listed company is an incorporated business that has an unlimited number of shareholders and lists and sells its shares on the ASX

Question 9

Incorporated

Answer 9

A legal status of a company whereby the company is established as a separate legal entity to the shareholder/s

Question 10

Director

Answer 10

A person or a group of people who are responsible for and in charge of making decisions for a company

Question 11

Shareholders

Answer 11

Are the individuals or organizations who have purchased shares of a company and therefore are part-owners of the company

Question 12

Shares

Answer 12

Are the portions of an incorporated business that can be bought and sold as a means for the business to gain revenue

Question 13

Dividends

Answer 13

Are regular sums of money paid out to shareholders from a company’s profit

Question 14

Company tax

Answer 14

Is the portion of profits a company pays to the government for public services

Question 15

Limited liability

Answer 15

Is when shareholders are only liable to the extent of their original investment, meaning they are not personally responsible for the business debts

Question 16

Capital

Answer 16

Is the resources that can be used for funding a business, such as cash, machinery, and equipment

Question 17

Australian Securities Exchange (ASX)

Answer 17

Is the electronic market where Australian public company shares are bought and sold

Question 18

Social Enterprise

Answer 18

A social enterprise is a type of business that aims to fulfill a community or environmental need by selling goods or services

Question 19

Government Business Enterprise (GBE)

Answer 19

A government business enterprise (GBE) is a business that is owned and operated by the government

Question 20

Public Sector

Answer 20

Is the part of the economy that is operated by the government

Question 21

Business Objectives

Answer 21

Are the goals a business intends to achieve

Question 22

Profit

Answer 22

Is total revenue earned minus total expenses incurred

Question 23

Revenue

Answer 23

Is the total amount of money a business generates from its normal business activities

Question 24

Expenses

Answer 24

Are the costs of operating a business

Question 25

Market share

Answer 25

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

Question 26

Capital gain

Answer 26

Is an increase in the value of a share, meaning an investor can sell their shares at a higher price than what they originally purchased them for

Question 27

To fulfil a market need

Answer 27

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

Question 28

Efficiency

Answer 28

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

Question 29

Productivity

Answer 29

The number of goods or services that are produced compared to the number of resources used in the production process

Question 30

Effectiveness

Answer 30

Is the extent to which a business achieves its stated objectives