types of business Flashcards
define business
lawful commercial activities to earn a profit. a business known as an enterprise, agency or firm is an entity involved in the provision of goods and services to consumers.
sole trader
individual operating as the sole person legally responsible for all aspects of the business, it is a simple business structure and enables owner to make all decisions associated within the business operations.
- unlimited liability
- low cost structure
partnership
business structure that involves a number of people (up to 20) who run a business together and governed by the partnership act 1958.
- separate tax file number
- not a separate entity
- each person responsible for own super
- shared control
private limited company
e. g Visy, Linfox; these companies are incorporated, and have their own legal identity meaning they can sue or own assets in their own rights. Ownership is a divided up into equal shares and shareholders own one or more of these. these are often small businesses e.g. independent retailer, legal firm.
- complex business structure
- registered for GST
- expensive start up costs.
public listed company
E.g. Qantas BHP. company has shareholders who own the company. directors are in charge pf running it and this type of company is listed on the stock exchange for public to trade shares.
- separate legal entity
- listed on stock exchange
- limited liability
social enterprise
revenue-generating business with primarily social objectives whose surplus is reinvested for that purpose in the business or community. Not driven by need to deliver profit to owners/shareholders
- led by economic, social, cultural, environmental mission.
- 50% profits reinvested into mission.
government business enterprise
is a commonwealth entity or company that unlike government departments aims to act under general business principles and make profit. e.g. aus post,
