1A – Types of Businesses

Question 1

Sole trader

Answer 1

is a business structure that is owned and operated by one individual.

Question 2

Partnership

Answer 2

is a business structure that is owned by two to 20 owners.

Question 3

Private Limited Company

Answer 3

is an incorporated business structure that has at least one director and a maximum of 50 shareholders.

Question 4

Incorporated
+
Limited liability

Answer 4

Incorporated - is a legal status of a company whereby the companyis established as a separate legal entity to the shareholder/s.

Limited liability - is when shareholders are only liable to the extent of their original investment, meaning they are not personally responsible for the business debts.

Question 5

Public Listed Company

Answer 5

is an incorporated business that has an unlimited number of shareholders and lists and sells its shares on the ASX.

Question 6

Social Enterprise

Answer 6

is a type of business that aims to fulfil a community or environmental need by selling goods or services.

Question 7

Government Business Enterprise

Answer 7

is a business that is owned and operated by the government.