Unit 3 Chapter 1 Flashcards
Business Foundations (43 cards)
sole trader
a business structure that is
owned and operated by
one individual.
unincorporated
a legal status of a business
whereby the business
owner and the business
are viewed as the same
legal entity
unlimited liability
the personal legal
responsibility a business
owner has for an
unincorporated
business’s debts
partnership
a business structure that
is owned by two to 20
owners
private limited company
- Pty Ltd
an incorporated
business structure that
has at least one director
and a maximum of 50
shareholders
public listed company
- Ltd
an incorporated
business that has an
unlimited number of
shareholders and lists and
sells its shares on the ASX.
incorporated
a legal status of a company
whereby the company
is established as a
separate legal entity to the
shareholder/s.
limited liability
when shareholders are only
liable to the extent of
their original investment,
meaning they are not
personally responsible for
the business debts.
social enterprise
a type of business that aims
to fulfil a community or
environmental need by
selling goods or services
government business enterprise
- GBE
a business that is owned
and operated by the
government.
business objectives
the goals a business
intends to achieve
market share
a business’s percentage
of total sales within an
industry
capital gains
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.
dividends
regular sums of money paid out
to shareholders from
a business’s profit.
to fulfil a market need
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
to fulfil a social need
improving society and
the environment through
business activities
efficiency
how productively a business
uses its resources when
producing a good or
service
effectiveness
the extent to which a
business achieves
its stated objectives
stakeholders
individuals, groups, or
organisations who have
a vested interest in the
performance and activities
of a business
owners
individuals
who establish, invest, and
have a share in a business,
often with the goal of
earning a profit from
its operations
- In public listed and private
limited companies, owners
are known as shareholders
managers
individuals who oversee
and coordinate a
business’s employees
and lead its operations
to ultimately achieve the
business’s objectives
employees
individuals who are hired by
a business to complete work
tasks and support the
achievement of its
objectives
customers
individuals
or groups who interact
with a business by
purchasing and utilising its
goods and services
suppliers
individuals or groups that
source raw materials,
component parts, and
processed materials and
sell them to a business
for use in the production
of its goods and services
