Public and Private Companies

Jamie Z 2024-02-11

Learning Goals

• Define a public and private company and describe their advantages and disadvantages
• Investigate companies/businesses and distinguish their ownership types

Companies in Australia

• A company is an entity/business that has a separate legal existence from its owners
• The directors have responsibility for a company’s resources and get paid a salary
• The shareholders are the owners because they have invested but make no management decisions
• Shareholders receive payment through dividends
• The legal status gives a company the same rights as a person - The company can incur debt, sue and be sued

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