Business structure
How many types of business structures did we discuss?
3 types, sole traders, partnerships, and companies
What type of company is Woolworths?
Public listed company
Can sole trader businesses have more than one owner?
No, there can only be one owner, but they can hire employees.
What type of business can sell shares to the public?
A public listed company
Who makes the business decisions in a partnership structure?
The partners (owners) themselves
What does it mean to say a sole trader structure has a limited life?
This means that after the owner retires or dies the business will cease to operate unless left to a beneficiary in their will.
How much tax is Woolworths charged, as a percentage?
30% tax rate, because they're a company that has a turnover higher than $50 million in income.
Do sole traders have to follow the Corporations Act 2001?
No, they do not.
Who runs companies?
Directors
A partnership can only be owned by 2 people. True or False?
False, a partnership can be made up of 2 or more people
Business structure where two seperate businesses or people decide to work together
Partnership
Does Woolworths own most of their company?
No, Woolworths is only the 8th largest shareholder in the company making them not the owner of most of the company
Sole traders are the most expensive business structure to set up. True or false?
False
Who are the owners of a company?
Shareholders
Assets and liabilities cannot be split between partners. True or False?
False, partners can split income and liabilities
The business structure where owners are referred to as "members," and they enjoy limited liability.
Company
Who was the largest shareholder in the Woolworths company?
HSBC Custody Nominees (Australia) Limited
Up to how much income tax can sole traders pay?
45% income tax
Where are corporation's ownership shares are bought and sold?
Stock market or exchange
What is the main tax benefit of a partnership structure?
Splitting the income between partners can lead to lower tax on their income because they are in a lower tax bracket
What is the highest amount a company structure can be taxed?
30%
Where is Woolworths listed
ASX
How much of the sole traders net profits is the owner entitled to?
All net profits
A company is a separate legal entity from its owners. True or False?
True, it has its own tax and superannuation obligations
What is the main benefit of multiple owners in a partnership?
The ability to pool together skills and expertise from differing specialties