1. Year 10 Accounting & Entrepreneurship

2.  Define the types of business structure  List advantage and disadvantages of each  Identify when to use which structure

3.  In this course we will look at 3 business structures ◦ Sole trader ◦ Partnership ◦ Company

4.  1 person as director who is: ◦ Legally responsible for all aspects of the business ◦ The only decision maker  It is the simplest structure  They have complete control  100% of the liability = unlimited liability  Taxed at personal tax rates

5.  2 or more people, but less than 20  They share the profits, and the liabilities  A Partnership Agreement is used to establish rights and responsibilities, for example ◦ Who has limited and / or unlimited liability ◦ Who gets what share of the profits ◦ Who gets paid what and when  Partners are not employees

6.  A separate legal entity that can hold assets and conduct business in it’s own rights that is owned by shareholders and managed by directors  You can sue a company  A director can still be held liable for conduct and business performance  There is limited liability  Must be registered with ASIC  Must be incorporated under the Corporations Act 2001

7. There are 2 types of Companies  Public ◦ More than 50 non employees shareholders ◦ Can offers shares to the public and ◦ Is listed on ASX  Propriety ◦ No more than 50 non employee shareholders ◦ Generally not permitted to offer shares to the public ◦ Must have at least 1 shareholder and 1 director