unit 3- AOS 1 Flashcards
(13 cards)
define a sole trader
a sole trader is a where one person owns and runs their business.
define a partnership
a partnership is a business owned by two or more people (2-20).
define a private limited company
private limited company an
incorporated business that has a
minimum of one shareholder and
a maximum of 50 non-employee
shareholders, and whose shares are
offered only to those people whom
the business wishes to have as part
owners.
define a public listed company
public listed company an
incorporated business with a
minimum of one shareholder
(and no maximum), and whose
shares are openly traded on the
Australian Securities Exchange
define a government business enterprise
a government business enterprise is a type of business that is government owned and operated. GBEs carry out government policies while
they deliver community services. They operate at both the federal and state level of government
define a social enterprise
a social enterprise is a business that has the objective of fulfilling a social need, for the community whilst also making profit.
what is unlimited liability
the personal legal responsibility a business owner has for an unincorporated business’s debt.
what is limited liability
when shareholders are only liable to the extent of their original investment, meaning they are not personally responsible for the business debts.
what are shareholders
the individuals or organisations who have purchased shares of a company and therefore are part owners of the company.
what is an incorporated business
a legal status of a company whereby the company is established as a seperate legal entity to the shareholders.
what is an unincoperated business
a legal status of a business whereby the business owner and business are viewed as the same legal entity.
what are the business objectives
- to make a profit
- to increase market share
- to meet shareholder expectations
- to fulfill a market need
- to fulfil a social need
- to improve efficienct
- to improve effectiveness
