AOS 2 KK1-9 Flashcards
Internal environment
Business has some/full control (micro)
External environment
Business has no control (outside pressures)
Business Structures
Soletrader, Partnership, Incorporated (Private and Public), Social enterprise and Government Business enterprise (GBE)
Soletrader
One person, unlimited liability, one person runs and operates business, takes all responsibility
advantages: low cost and no tax on profits
disadvantages unlimited liability and liable for debts
Partnership
2-20 owners, similar to soletrader
advantages low cost and shared partnership
disadvantages unlimited liability and liable for debts
Proprietary (Private) business
Must have at least one shareholder and max 50 + a director
small,medium sized businesses
PTY LTD or PROPRIETRY LIMITED after their name
positives: limited liability, business has control over the buying and selling of shares
negatives: cost,
Public Incorporations
Minimum one person and no max amount of shareholders
positives: limited company and public can buy and sell shares
negatives: costs, double taxation
Social enterprises
1-4 shareholders, take social problems, usually charities
50% profits reinvested to expand operations
dont rely on on donations
advantages: employees motivated , social community goal could create more profits
disadvantages: still need to consider financial goals to make profit, difficult to raise external finance
Government Business Enterprise
Type of business owned and operated by the government for purpose of making a profit
eg. AUSPOST, ABC
Advantages: taxpayer money used efficently
Business models
bricks and mortar, bricks and clicks, franchise, import and export, direct to consumer (DTC)
Bricks and mortar
physical location
advantage face to face, can build a good customer relationship
disadvantage expensive to establish and competition
bricks and clicks
online presence
open 24/7 and global reach
no face to face interaction, competition
Direct to consumer (DTC)
sell products directly to consumers without intermediaries (eg retailers/wholesalers)
brand loyalty- high focus on connection with customers
lower costs
exposed to online risks if they sell online
franchise
buys rights to use business name and distribute goods or service of existing business
franchisor sells business to franchisee
successful business formula
well recognised
expensive
cant expand business
import and export
import- buying products from overseas and bringing them to australia
export- selling products from australia overseas
