1.1 types of businesses Flashcards
what is a sole trader?
A sole trader is a business that has a single owner meaning that the owner is personally responsible for all business debts. The owner contributes all funds and receives all profits of the business.
what is a partnership?
A Partnership is a business with 2-20 owners who have unlimited liability meaning that the owners are personally responsible for all business debts.
A partnership has more access to capital/funds due to there being more than one owner and benefits from shared decision-making between the owners.
what is a private limited company?
A Private Limited Company is a business with up to 50 shareholders who must be invited to purchase shares. A private limited company (PTY LTD) has limited liability meaning that shareholders are not personally responsible for the debts of the business beyond their invested funds.
What is a public listed company?
A Public Listed Company trades its shares on the Australian Securities Exchange (ASX) and can have an unlimited number of shareholders. Members of the public can become shareholders and they have limited liability, meaning that the shareholders are not personally responsible for the debts of the business beyond their invested funds.
what is a social enterprise?
A Social Enterprise is a business that aims to run profitably while providing economic, social, cultural or environmental benefits to communities. A Social Enterprise’s owners or shareholders make day to day decisions for the business.
what is a government business enterprise?
A Government Business Enterprise (GBE) is a business that is owned and controlled by the Government with a board of directors, (answerable to a Govt minister). GBE’s provide access by the community to essential services whilst seeking to run profitably and return profits to the Government.
