AOS 1 Flashcards
Sole trader
An individual owner of a business, entitled to keep all profits after tax has been paid but is liable for all losses
Partnership
A legal form of business ownership where two or more people work together
Company
A separate legal entity that is subjected to the requirements of the corporations act 2001, owned by shareholders who have limited liability and have directors.
Social enterprise
Private sector business that distributes profit to benefit the community rather than individual shareholders
Government business enterprise
A business that is government owned and operated. GBEs seek to run profitably by controlling costs and selling goods and services to cover cost
Objectives
Statements of desired achievement that provide direction for the business
SMART
Goals which are, specific, measurable, attainable, relevant and time-bound
Market share
Proportion of the market controlled by the business. Such as if a business has 10% of sales in a market, out of every 100 sales 10 will be from the business
Stakeholder
An individual or group which has direct interest within the activities of the business
Macro environment
Broad operating conditions in which a business operates and over which it has no control
Operating environment
The environment immediately external to a business with which it has close interaction to when conducting its business activities
Internal environment
Activities, functions and pressures that occur within a business over which is has control
Corporate culture
System of shared beliefs of people within a system
