U3 AOS1 Flashcards
Definitions
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business
any activity conducted by and individual or individuals to produce and sell goods and services that satisfy the needs of society, as well as making profit
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shareholders (or members)
the owners of a company
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sole trader
a business owned and operated by 1 person
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unlimited liability
refers to when the business owner is personally responsible for all the debts of their business
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partnership
a business owned by 2 or more people (generally a maximum of 20)
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profit
what is left after business expenses have been deducted from money earned from sales (revenue)
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incorporation
the process that businesses go through to become a registered company and a separate legal entity from the owner/shareholder
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limited liability
refers to when the shareholders in a company will not be held personally responsible for the debts of that business
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liquidation
the process of selling off the assets of a business in order to repay creditors, with any assets remaining to be distributed among shareholders
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private limited company
an incorporated business that has a minimum of 1 shareholder and a maximum of 50 non-employee shareholders, and whose shares are offered only to those people whom the business wishes to have as part owners
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directors (of a company)
the people who have overall responsibility for managing the company’s business activities
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assets
items of value owned by a business
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public listed company
an incorporated business with a minimum of 1 shareholder (and no maximum), and whose shares are openly traded on the Australian Securities Exchange
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social enterprise
a business with the objective of fulfilling a social need
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government business enterprise (GBE)
a type of business that is government owned and operated
