types of businesses

• A sole trader is a business that is owned and operated by one person. It has unlimited liability, as the business is the same legal entity. An example is the local hairdresser
• A partnership is a business that is owned and operated by 2 or more (up to 20) people. It has unlimited liability, as the business is the same legal entity. An example is a doctor's clinic
• A private listed company is a business that is not listed on the ASX, and has 1-50 private shareholders. It is a separate legal entity to the owners. An example is Linfox
• Two advantages of a sole trader are: low start-up costs and owner has complete control
• Two disadvantages of a sole trader are: unlimited liability and difficult to grow.
• Two advantages of a partnership are: more start-up capital and range of talent amongst owners.
• Two disadvantages of a partnership are: unlimited liability and possibility for partner disputes
• Two advantages of a private listed company are: limited liability and easier to finance
• Two disadvantages of a private limited company are: costly to set up and complex structure
• A public listed company is a business that is listed on the ASX and has unlimited shareholders. It is a separate legal entity to the owners. An example is NAB
• Two advantages of a public listed company are: limited liability and easier to finance
• Two disadvantages of a public listed company are: costly to set up and complex structure
• A government business enterprise (GBE) is a business that is owned by the Commonwealth Government and strives to make a profit. An example is AusPost
• Two advantages of a GBE are: funding from government and provides healthy competition
• One disadvantages of a GBE is: strict government regulations
• A social enterprise is a business that operates to make a profit, to fulfil a social objective. An example is Big Issue
• One advantage of a social enterprise is: opens new markets
• One disadvantage of a social enterprise is: difficult to operate and finance