Nature of Business (Deck B)

Front

What is a public company?

Back

A public company is a large business with shares listed on the Australian Securities Exchange, allowing the general public to buy and sell shares.

Front

What are the characteristics of a public company?

Back

At least one shareholder, no maximum number, no restrictions on share transfer, must issue a prospectus when selling shares for the first time, minimum of three directors (two must live in Australia), and 'Limited' or 'Ltd' in its name.

Front

What is a government enterprise?

Back

Government enterprises are government-owned and operated businesses that carry out government policies while delivering community services.

Front

What are the characteristics of government enterprises?

Back

Aim to increase asset value and returns to the government, controlled by a board of management or directors, owned and operated by federal, state, and local governments.

Front

What is privatisation?

Back

Privatisation is the selling of government-controlled businesses to private investors, changing the legal structure to a public company.

Front

What is franchising?

Back

Franchising involves buying the rights from another business to distribute its products under its name.

Front

Who is a franchisor?

Back

A franchisor is an individual or business that grants a franchise.

Front

Who is a franchisee?

Back

A franchisee is an individual or business that purchases a franchise.

Front

What is required for a company to become public?

Back

A company needs a float and a prospectus to become public. A float raises capital through public share sales, and a prospectus invites the public to buy shares.

Front

What is the business environment?

Back

The business environment refers to the surrounding conditions in which a business operates, divided into external and internal environments.