Legal Requirements
What must a business do if it wants to operate under a name other than the owner's name?
Register the business name.
What is budgeting?
Estimating a business's future financial transactions.
Name one factor a business should consider when choosing a supplier.
Price, quality, reliability, location or social responsibility.
How can the CSR of suppliers affect business decision-making?
A business may prioritise ethical suppliers that are socially and environmentally responsible.
What is a workplace policy?
A written rule explaining how employees are expected to behave and perform.
Which law controls how businesses deal fairly and honestly with customers and competitors?
The Competition and Consumer Act 2010.
What is auditing?
Assessing financial information to verify that it is true and accurate.
Which supplier factor considers how much a business must pay for its inputs?
Price.
Why might a business choose an overseas supplier based on the inputs it offers?
The supplier may provide unique or hard-to-find resources.
What is a workplace procedure?
Step-by-step instructions for putting a policy into action.
Name one rule businesses must follow under trade practices legislation.
Honour guarantees and warranties, avoid collusion, or avoid false and misleading advertising.
How can budgeting help a business prepare for low cash flow?
It predicts low cash flow periods so the business can plan in advance.
Which supplier factor considers whether inputs meet the required standard?
Quality.
What communication issue may occur when using an overseas supplier?
A language barrier.
Which policy helps a business provide safe working conditions?
The Occupational Health and Safety Policy.
Which organisation monitors business tax compliance in Australia?
The Australian Taxation Office (ATO).
How can budgeting help detect fraud?
It can reveal unusual differences between expected and actual transactions.
Which supplier factor considers whether orders will arrive correctly and on time?
Reliability.
How might a business respond to a language barrier with an overseas supplier?
Choose a supplier that speaks the same language or use additional communication tools.
What type of information is protected by a Privacy Policy?
Personal customer information.
Why might two businesses pay different rates of tax?
Tax rates differ depending on the business structure.
How can auditing help prevent fraud?
It checks that transactions are recorded correctly and supported by evidence such as receipts.
Which supplier factor considers ethical and environmentally responsible practices?
Social responsibility.
Identify two global issues a business should consider when selecting an overseas supplier.
Any two of supplier CSR, the types of inputs offered and language barriers.
Why will different businesses require different policies and procedures?
The required policies and procedures depend on the laws applying to that type of business.