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Revision for Business Entity Mid Sem

Revision for Business Entity Mid Sem - Week 2 Business...

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Week 2 Business Structure Sole trader Partnership: Limited Partnership & Venture Capital Partnership Joint Venture: Unincorporated & Incorporated Trust: Express Trust & Non-express Trusts Companies: Public (Listed & Unlisted) & Proprietary (Small& Large) Association: Unincorporated& Incorporated Possible stages and life cycle of a business 1) Founder begins as a sole trader 2) Founder takes on a partner to from a partnership 3) Partnership converts business into a Pty Co and expands it (to a maximum size of 50 shareholders 4) Then the Pty Co is transformed into a public co and raises finance from the public 5) Public co is then listed on the ASX and issues shares or debentures to the public to raise more capital 6) Later the public co goes global and develops into a group of co’s which have subsidiaries locally and offshore Sole Trader: Advantages: Minimal formalities/regulation (only needs to register business name; with tax office) Business Names Act: register a name other their own name, not offensive Total control No sharing of management/profits Ability to use business losses to offset other taxable income Disadvantages:
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