1.1 Types of businesses

a business that is owned and operated by one person often with the primary objective of making a profit.

a type of business that is owned by between two and 20 partners.

________ can cause inefficiencies in the way GBEs are run.

important if the business becomes insolvent or declares bankruptcy

A(n) ________ is a business that produces goods or services to sell to consumers, but exists to benefit society rather than the owners.

potentially leading to lower prices for consumers

A private company is identified by the letters ‘ ________ after their trading name.

Providing employment opportunities for the disadvantaged Contributing to other causes such as addressing societal issues e.g

an incorporated business that is owned by between 1 and a maximum of 50 shareholders.

a business that produces goods or services to sell to consumers, but exists to benefit society rather than the owners.

________ can still be held personally liable if found to have behaved in a fraudulent manner.

Limited liability, meaning the owners of the business are treated as a(n) ________- important if the business becomes insolvent or declares bankruptcy.

a commercial entity that is owned and operated by the government.

A(n) ________ has its shares freely traded on the Australian Securities Exchange (ASX)

accountancy and legal fees etc

• the main purpose of a GBE is to carry out the policy of the government through the delivery of paid for services to the communtiy

an incorporated business that will have a minimum of 1 and no maximum amount of shareholders, with shares being available for purchase by the public

• relies on skills, talents and experience of the owner to be successful

• owned by one person

• profits all go to the owner

• owner has complete control over the running of the business

• can make decisions based on their best interests

• subject to unlimited liability

• owner is personally responsible for all business debts

• owner can be sued for business issues

• all partners share in risks and rewards of operating the business

• multiple owners

• greater pool of knowledge, experience and talent available to run the business

• can be hard gaining total agreement from all partners when trying to implement change or make decisions in the business

• shares in a private company are only offered to those people the business wishes to have as part owners, and are not traded on securities exchange

• a private company is identified by the letters ‘Pty Ltd’ after their trading name

• limited liability - meaning the owners of the business are treated as a separate legal entity - important if the business becomes insolvent or declares bankruptcy

• more costly to establish when compared a to a sole trader or partnership - accountancy and legal fees etc

• directors/owners can still be held personally liable if found to have behaved in a fraudulent manner

• a public company has its shares freely traded on the Australian Securities Exchange (ASX).

• It is identified by the letters ‘Ltd’ after it’s trading name

• limited liability

• easier to attract public finance to assist with business growth often through further share issues

• expensive to establish

• greater public scrutiny as financial reports have to be published annually

• run just as a normal business, however operates with the primary objective to fulfil a social need such as:

  • providing employment opportunities for the disadvantaged

  • contributing to other causes such as addressing societal issues

    • eg, eradicating homelessness, environmental causes etc

• being a social enterprise can provide a point of difference from other competing businesses to help attract customers

• it can be difficult trying to focus on both social and financial objectives

• provides healthy competition to businesses operating in the private sector - potentially leading to lower prices for consumers

• political interference can cause inefficiencies in the way GBE’s are run

the state of being legally responsible for something

owner is responsible for any and all debts / legal issues

one of the equal parts into which a company's capital is divided, entitling the holder to a proportion of the profits

a person or institution that has invested money in a corporation in exchange for a “share” of the ownership

Proprietary limited - a private listed company

an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments

a company formed into a legal organisation

owners are treated as separate legal entities to the business

an individual, company, or organisation that has legal rights and obligations

an inability to pay debts owed

declared by law as unable to pay their debts

potentially leading to lower prices for consumers

A(n) ________ is a business that produces goods or services to sell to consumers, but exists to benefit society rather than the owners.

Providing employment opportunities for the disadvantaged Contributing to other causes such as addressing societal issues e.g

A(n) ________ is a type of business that is owned by between two and 20 partners.

A(n) ________ is a business that is owned and operated by one person often with the primary objective of making a profit.

important if the business becomes insolvent or declares bankruptcy

Limited liability, meaning the owners of the business are treated as a(n) ________- important if the business becomes insolvent or declares bankruptcy.

accountancy and legal fees etc

________ can cause inefficiencies in the way GBEs are run.

A(n) ________ has its shares freely traded on the Australian Securities Exchange (ASX)

A private company is identified by the letters ‘ ________ after their trading name.

________ can still be held personally liable if found to have behaved in a fraudulent manner.

A(n) ________ is a commercial entity that is owned and operated by the government.

A(n) ________ is an incorporated business that is owned by between 1 and a maximum of 50 shareholders.

Being a(n) ________ can provide a point of difference from other competing businesses helping to attract customers.