Business Management UNIT 3/4 EXAM Questions And Answers

Business Management UNIT 3/4 EXAM Questions And Answers ole Trader - ANS Businesses owned and operated by a single individual. Advantage: -Owner has complete control over all decisions in the business - The owner has the right to keep all the profits after taxes Disadvantage: - Unlimited liability for business debts - Burden of management and failure all falls to the owner Partnership - ANS Businesses that are owned by a minimum of 2 and a maximum of 20 people. A partnership may be made orally or written. Advantage: - Combined funds and financials - Partners can share the workload Disadvantage: - Each partner has unlimited liability - A possibility of disputes Private limited company - ANS An incorporated business with a minimum of 5 and a maximum of 50 private shareholders, and whose shares are only offered to those whom the business wishes to have as part owners. Advantage: - Limited liability - Existence of the business is not threatened by death or removal of one of the directors or shareholders Disadvantage: - Higher degree of government control and reporting requirements - Higher degree of complexity in establishing Public Listed Company - ANS An incorporated business with a minimum of 5 shareholders, and whose shares are publicly listed on the ASX (Australian Securities Exchange). E.g. Telstra, Westpac, Woolworths and Virgin Australia Advantage: - Easier to attract public finance because the business has been incorporated - Limited liability Disadvantage: - Double taxation higher operating fees - Shareholders may have diverse priorities, which can be difficult to satisfy Social Enterprise - ANS A business that operates with the main objective of fulfilling a social need, rather than making a profit. E.g. The Big Issue, Thank You Water Advantages: - Can open up new markets - Positive impact on the communit