Characteristics of businesses

Question 1

Soul trader

Answer 1

Owned by 1 person

Has unlimited liability which means all your personal assets are at risk if things go wrong

Question 2

Partnerships

Answer 2

2-20 individuals who own the business

Each partner is responsible for their superannuation arrangements

Not a separate entity, unlimited liability

Question 3

Private limited companies

Answer 3

Must have at least one shareholder and a maximum of 50 non employee shareholders

Shares cannot be publicly sold through the stock exchange but instead sold to people approved by the company’s directors

Question 4

Social enterprise

Answer 4

Profit driven

A business with the objective of achieving a social goal

Reinvesting back into the community

Question 5

Publicly listed companies

Answer 5

Listed on the stock exchange

have members and shareholders who own the business and directors who run it

Question 6

Government business enterprises

Answer 6

aim to act on general business principles rather than to make a profit

A government business enterprises is owned by the Commonwealth