Sac 1 Revision - 3 Flashcards
Sole Trader
A sole trader business is a business owned and operated by one person.
Industry
Is the classification of groups of business related to the particular good or service they produce.
Unlimited Liability
Means the business owner is personally responsible for all the debts of his or her business.
Partnership
A partnership is a business owned by a minimum of 2 and a maximum of 10 people.
Silent or Sleeping Partner
Contributes financially to the business but takes no part in the running of the partnership
Incorporation
Is the process that businesses go through to become a registered company and a separate legal entity
Private Limited Company
Is an incorporated business with a minimum of 2 and a maximum of 50 private shareholders and whose shares are offered only to those people whom the business wishes to have as part owners.
Public Listed Company
Is an incorporated business with a minimum of 5 shareholders and whose shares are freely traded on the Australian Securities Exchange.
Social Enterprise
Is a business with the objective of fulfilling a social need
Government Business Enterprise
Is a type of business that is government owned and operated.
Objective
Is a desired goal, outcome or specific result that a business intends to achieve.
Vision Statement
States what the business aspires to become.
Mission Statement
Expresses why the business exists, its purpose and how it will operate.
Key Performance Indicators
Are specific criteria used to measure the efficiency and effectiveness of the business’s performance.
Stakeholders
Are groups and individuals who interact with the business and have a vested interest in its activities.
