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Flashcards in Key Terms Deck (120)
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1

Prospectus

A formal document of invitation to the public and potential investors to purchase shares in a particular company

2

Proprietor

the owner of a business, or a holder of property.

3

Define Partnership (not buisness type)

a legal form of business ownership where two or more people (partners) work together and who share profits and the responsibilities of operations

4

partnership agreement

a formal document which outlines the duties and responsibilities of the parties to a partnership

5

Unlimited liability

Is the complete responsibility an owner has for a business's debts.

6

Debts

are the sums of money a business owes to banks, suppliers or even customers.

7

Profits

are the amount remaining after all expenses are deducted from a business's income.

8

Perpetuity

the state of lasting forever

9

Limited liability

Limited liability is the protection of a shareholder's personal assets against any business debt.

10

Personal income tax

is a portion of an individual's earnings that is paid to a government for public services such as roads, schools and hospitals.

11

Company tax

is the portion of profits a business pays to the government for public services such as the police, courts and fire services.

12

Director

is the manager of a particular area of a company often selected for their expertise.

13

Incorporated

is a business being established as a separate legal entity from the owners

14

Shareholders

are part-owners of a business as they purchase company shares.

15

Unincorporated business

A business that does not possess a separate legal identity from its owner(s). The owner(s) bear full liability for any action or inaction of the business

16

shares

are the units of ownership of a business that it sells to raise funds

17

Private sector

part of the economy operated by private individuals, groups or institutions

18

Public sector

part of the economy operated by the government

19

Open market

is a public arena where people can buy and sell items of commercial value freely.

20

Australian Securities Exchange (ASX)

The primary exchange for securities in Australia, the electronic market where Australian public company shares are bought and sold.

21

Share price

is the value of a single share of a company that it can be bought or sold for

22

Dividends

are regular sums of money paid out to shareholders from a business's profit.

23

Goods and Service Tax (GST)

a broad-based tax of 10% on the supply of most goods and services sold or consumed in Australia

24

Company

a separate legal entity (incorporated body) that is subject to the requirements of the Corporations Act 2001, owned by shareholders who have limited liability, run by directors and has perpetual succession

25

Australian Securities and Investments Commission (ASIC)

the independent Australian body acts as Australias corporate regulator which enforces and regulates company and financial laws to protect Australian consumers, investors and creditors.

26

Australian Company Number (ACN)

nine-digit number to be used on a company's common seal and all public documents involving the company

27

social entrepreneur

a person who establishes an enterprise with the aim of solving social problems effecting social change

28

Revenue

is the amount of money a business makes from its normal business activities.

29

Expenses

are the costs of running a business.

30

Market share

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