3a) Types of business structures

Question 1

What is a sole trader?

Answer 1

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

Question 2

What is unlimited liability?

Answer 2

Unlimited liability is the
business owner being held
personally responsible for the
business’s debts.

Question 3

What is a partnership?

Answer 3

A partnership is a business
structure that is owned by two
to 20 people.

Question 4

What is a private limited company?

Answer 4

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

Question 5

What is limited liability?

Answer 5

Limited liability is when the
business owner is not held
personally responsible for the
business’s debts.

Question 6

What are share holders?

Answer 6

Shareholders are the individuals
who have purchased part of a
company and therefore are owners
of the company.

Question 7

What is a public listed company?

Answer 7

A public listed company is an 
incorporated business structure 
that is managed by directors and 
has an unlimited number 
of shareholders

Question 8

What is the ASX?

Answer 8

The Australian Securities 
Exchange (ASX) is where 
companies can raise money by 
selling shares publicly to investors 
who will then have partial 
ownership of the company.