types of business Flashcards
Sole Traders
A Sole trader is a business structure owned by a single person
- Simplest and most cost-effective legal business structure
- A sole trader has unlimited liability
- A sole trader is responsible for all payments or loans
partnership
A partnership
- A partnership is a type of business owned by 2 or up to 20
- Its relatively easy and inexpensive to set up
- It’s not a separate entity
- You shear the control with your partners
Private limited company
These types of companies are incorporated which means they have their own legal identity and can sue and own assets in their own right. The ownership of a limited company is divided up to up into shears. Whoever owns one or more of these is a shareholder.
- Is a separated legal entity
- Has limited liability compared to structures
- must be registered for goods and services tax (GST)
public listed company
A company has members (stockholders) who can own the company and directors who run it
The company is listed on the stock exchange for members of the public who trade shares in it
-Is a separate legal entity
-Has limited liability
-Is listed on the Australian stock exchange
-requires you to understand and understand and comply with all obligations under the cooperation act 2001
-Means all the money belongs to the “company”
social enterprise
A social enterprise is a revenue-generating business- with a primary social objective whose surpluses are reinvested for that purpose in the business or in the community, rather than being driven by the need to deliver profit to the shear holder and owners
-Be led by an economic, social, cultural, or environmental mission with a public or community benefit
government business enterprise
A government business enterprise is a commonwealth entity or commonwealth company that unlike government departments aims to act under general business principles and aims to make a profit
