Legal structures Flashcards
Partnership
unincorporated, 2-20 people and unlimited liability
Sole trader
Unincorporated, owner and operated by one person and unlimited liability
Unincorporated
Liable for all debts - sole trader and partnership
incorporated
Separate from owners so no liability - private or public companies
unlimited liability
responsible for all debts, if the business is unable to pay it comes out of the owners pocket
Private company
Doesnt sell shares of stock to the public at large. E.g LEGO.
public company
Sells shares to the public at large, open to investments. E.g Paypal. Ltd
Advantages of partnership
More resources and shared risk
Advantages of public
Publicity and credibility
Advantages of private
Access to funding and tax
geographical spread
The range of a business products across a state, city, country or globe
An incorporated business must ..
be registered with ASIC (Australian Security and Investment commissions)
Proprietary company
Between 2 and 50 private share holders, only offered to those people that the business wishes to have part owners. Must have Pty Ltd after its name
Government enterprises
Government-owned, operate and provide essential community services
4 legal structures
sole trader, public and private company and partnership
