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QLDBusiness StudiesQuick questions
Unit 1: Business creation
Quick questions on Business structures: sole trader, partnership, company, trust (QCE Business Unit 1)
10short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is the four main structures in Australia?Show answer
One owner-operator. The owner and the business are the same legal entity. The owner has unlimited personal liability for business debts. Profit is taxed at the owner's marginal income-tax rate (up to 47 percent including Medicare levy).
What is choosing the right structure?Show answer
Many established Australian businesses use a combined structure - a trust holding the shares of a trading company - to combine the tax flexibility of a trust with the limited liability of a company.
What is worked Queensland examples?Show answer
:::worked Worked example "Recommend a business structure for two siblings launching a fast-growing Brisbane food-truck chain. They plan to take on staff and seek outside investment by year three. (5 marks)"
What is pros?Show answer
Simple and cheap to set up. Minimal ongoing compliance. Owner keeps all profit.
What is cons?Show answer
Unlimited personal liability. Limited capacity to raise capital. Business ends if the owner stops trading.
What is common use?Show answer
Trades (plumbers, electricians), small retail, freelance professionals, food trucks, contractors.
What is confusing Pty Ltd and Ltd?Show answer
Pty Ltd is private (max 50 non-employee shareholders, cannot list). Ltd is public (open to public ownership, must list to take public funds).
What is forgetting that a trust needs a trustee?Show answer
The trustee can be a person (rare for businesses) or a Pty Ltd company (most common). The trustee company has director duties.
What is treating tax as the only consideration?Show answer
Liability, capital raising, continuity and compliance cost all matter, often more than tax.
What is recommending a structure without a justified rationale?Show answer
QCAA marking criteria explicitly reward justification linked to the scenario. :::