Business structures
This business structure is owned by one individual.
What is a sole trader?
Shareholders in a private limited company have this type of liability.
What is limited liability?
A private limited company can have up to this maximum number of shareholders.
What is 50 shareholders?
Making decisions is quickest with this type of business structure.
What is sole trader?
This business structure has limited access to finance (personal savings and loans only).
What is a sole trader?
A partnership must have between this number of owners.
What is two to 20 owners?
This type of liability means the owner’s personal assets can be seized to pay business debts.
What is unlimited liability?
This document outlines partner roles, profit distribution, and responsibilities.
What is a partnership agreement?
This structure has fewer reporting requirements and greater access to finance as there are more people involved.
What is a partnership?
This structure has complex reporting requirements, such as annual financial reports, that need to be published to the public.
What is a public listed company?
This type of business aims to fulfil a social or environmental need while still making a profit.
What is a social enterprise?
This term describes a business that is legally separate from its owners.
What is incorporated?
This type of business is owned and operated by the government.
What is a government business enterprise (GBE)?
In this business structure, the business’s existence is not threatened by the removal of one director.
What is a Private Limited company?
If one partner leaves, it could be time consuming to restructure this business.
What is a partnership?
This type of business is an incorporated business that has an unlimited number of shareholders and lists and sells its shares on the ASX.
What is a public listed company?
In this busines structure, the level of risk is relative to their original investment in the company, rather than their personal assets.
What is a public listed company.
In Victoria, a social enterprise must contribute at least this percentage of profits to a social or environmental cause.
What is 50% of profits?
One major advantage of a partnership compared to a sole trader is this.
What is greater access to skills, expertise, and financial resources?
Productivity may be lower that others businesses structures as there tends to be a lack of accountability.
What is a GBE?
This business structure has at least one director and a maximum of 50 shareholders.
What is a Private Limited Company (Pty Ltd)
Although risk is shared in a partnership, partners still have this type of liability.
What is unlimited liability?
Before shareholders receive dividends, the company must pay this.
What is company tax?
One major financial advantage of a sole trader is this.
What is the owner retains all profits?
This structure is expensive to set up and operate as there are higher set-up and ongoing administration costs.
What is a private limited company?