Sole Trader
The number of owners in a sole trader business.
One
Minimum number of owners in a partnership.
2
Two types of companies.
Public and Private
Minimum number of directors and shareholders in a private company.
1
Minimum number of directors on the board of a public company.
3
The biggest advantage of a sole tradership is that the owner keeps all of the profits.
All profits.
Maximum number of owners in a partnership.
20
Elected part-owners or shareholders that form a group to make decisions on behalf of the company.
Board of Directors
Maximum number of shareholders in a private company.
50
Shareholders are not responsible for the losses or debts of the company.
Limited Liability
The owner of a sole trader business is taxed on this.
Income
A legal document usually drawn up by partners in a partnership.
Agreement
The term given to the elected leader of the Board of Directors.
President
Stands for 'proprietary' - this shows that a company is a private company.
PTY
Owners of a public company.
Shareholders
The owner is responsible and must bear all the losses of the business.
Unlimited liability
The financial investment that is contributed by an owner into a business - money or assets.
Capital
Stands for 'limited' - indicates that the business is a company and therefore has limited liability.
LTD
The public can buy part ownership (shares) in a public company on the Australian Stock Exchange.
ASX
Where partners are financially and morally responsible for all partners’ business actions.
Mutual agency
Percentage of the company profits that each shareholder receives.
Dividend