Businesses are summarized and categorized into three groups: legal entity, sector, and business activity. There are many different advantages and disadvantages in the different types of business and no one business in without its drawbacks.
Business in Australia can be separated by their legal entity (i.e. the type of ownership structure that they use). There are primarily three types of ownership strategies: the sole trader, the partnership, and the company. A business must have only one owner to classify as a sole trader. This characteristic allows a lot of flexibility within the business. Decisions can be made more efficiently, the owner is able to reap all the rewards, and it is relatively easy to set up. Another advantage on a lesser scale would be to maintain a private business environment. However, being a sole trader also has its disadvantages. Unlike partnerships or companies there is a limited source of finance and of the same time a limited source of management skills. If the business fails the owner has unlimited liability. Another disadvantage would be the unreliable amount of work that would consume the owner.
However, some of the disadvantages may be resolved by forming a partnership. A partnersh
The secondary sector of production is concerned with the transformation process i. It is a completely different legal entity to that of a sole trader. Businesses in the public sector are owned by the state, e. the public sector or the private sector. It also must abide to the type of business stated in the professional documents it submitted to the Registrar of Companies and the owners no longer make all the decisions, as there is a separation of ownership and control. transforming raw materials into goods to be sold. Based on a democratic environment, all the members have one vote. The bigger public company can be quoted on the stock exchange and have the right to sell their stock to anyone they want. As said before the shareholders have limited liability. However, it is extremely difficult to set up and a professional must be hired in order for the company to have any chance in succeeding. A Company has a separate identity from its owner. It is possible to incorporate the idea of shareholders into the entity but each share holder still holds one vote (unlike the idea that the more shares one possess, the more votes heshe has). There are several types of co-operatives. The tertiary sector concerns itself with the need for services.