Outcome Term 1(1) Flashcards
Sole trader
A business owned and operated by one person. It is unincorporated which has an unlimited liability
Partnership
A business owned and operated by a minimum of two people, and maximum of 20
Private limited company
An incorporated business that has a minimum of one shareholder and a maximum of 50 non-employee shareholders
Public listed company
An incorporated business with a minimum of one shareholder and no limit for maximum
Social enterprise
A business that produces goods and services for the market, but operates with the primary objective of fulfilling a social need
Government enterprise
A type of business owned and operated by the government
What are business objectives
To make a profit.
To increase market share.
To fulfil a market need.
To fulfil a social need.
To meet shareholder expectation.
To expand the business size
After a business identify its objective, what do they do?
Develop strategies, analyse performance using key performances indictor
Who are included in stakeholders?
Owners, shareholders, director, management, employee,
competitor, customer, suppliers, interest groups, government and boarder community
Corporate social responsibility
The obligations a business has over and above legal responsibilities to the wellbeing of employees and customer, shareholders and community, as well as the environment
Effectiveness
The degree to which a business has achieved its stated objectives
Efficiency
How well a business uses resources to achieve objectives
Limited liability
The shareholders in a company will not be held personally responsible for the debts of that business
Mission statement
Expresses why the business exists, its purpose and how it will operate
Unlimited liability
The business owner is personally responsible for all the debts of his or her business
