1.3-1.5 Types of businesses table

Types of businesses Type Definition Examples Characteristics Sole Trader (Sole Proprietorship) A sole trader business has one person who owns and runs the business. The business may decide to employ other people to work in the business, however the owner provides all the finance and makes all decisions. - Hairdressers - Tradespeople - Business consultants A sole trader business has full control over the business operations, decisions, and finances. A sole trader has unlimited liability meaning that the owner is personally responsible for all the debts of the business Partnership A partnership is a business owned by 2-20 people (there are exceptions to this number in Australia). - Steve Jobs, Steve Wozniak, and Ronald Wayne Invented Apple - Law firms - Physician groups They have the same legal liabilities as sole traders (unlimited liability), and silent partners provide financial backing to the company, however, do not have influence on how the company is run. Private listed Company Private limited companies must have at least one shareholder and a maximum of 50 shareholders. - Cotton on - Linfox The business decides who can buy the shares and these businesses are often followed by 'Pty ltd'. Private limited companies also have limited liability meaning that the shareholders in a company will not be held personally for the debts of that business. Public Listed Company An incorporated business structure with a minimum or one shareholder (and no maximum). - Testra - Woolworths - Virgin Australia - Westpac Shares for these companies can be bought by anyone through the Australian Securities' Exchange. These companies are the large scale organization's with a large range of products and have the word 'Limited' or 'Ltd' in its name Social Enterprise A business that produces goods and services but operates to improve society in some way. - Salvation army All profits made are reinvested back into the company to continue improving the social need. They act like a for profit business (as the more money they make the more services they can provide) and do not rely on donations. GBE (Government Business Enterprise) A type of business that is government owned and operated. - AusPost - VicRoads All profits go to the government or reinvested back into the service (unlike
- V/Line private or public companies)
Uploaded by PresidentKomodoDragon3296 on coursehero.com