legal and regulation
What is the first legal requirement, before operating can even commence
registering for an ABN
Has less than 20 employees and $10m in turnover
what are the three main business pathway entries a potential business owner can consider
franchise, new business, buy an existing business
describe what a profit is
when income exceeds expenses
What can you catch but not throw?
a cold
When does a business not need to register a business name
when they are trading under their own name
less than 200 employees and more than $10 turnover
Medium size business
which business pathway has the highest level of risk involved
starting your own
why would a business seek to be 'liquid'
To have a consistent inflow of money, which can be used to purchase assets and pay expenses.
What goes around the world and stays in a corner?
A stamp
what legal obligations does a business need to satisfy with local government (2 of 3)
licences, permits and certificates
describe the SME classification
a small to medium enterprise
which pathway provides the most financial security to the owner
buying an existing business
What is solvency
the ability for a business to use its assets to pay down liabilities or maximise investment
You can't keep this until you have given it.
a promise
What legal act provides a minimum standard to all employees
what percentage of businesses have a turnover of less than $2m
93% (90-95%)
what differentiates a franchise from purchasing an existing business
The business owner pays a fee in exchange for a licence to trade under a large business name
differentiate between equity finance and debt finance
Equity finance relates to funds contributed by the business owner or investors. Debt finance relates to funds provided by a financial intermediary
How can you go 10 days without sleep
you sleep at night
what are the main business insurance types (3 of 4)
professional indemnity, public liability, product liability and workers compensation.
small businesses employ what percentage of total employment in the private sector
48% (50%)
What is the most franchised business in Australia (number of franchisees)
7 Eleven
describe what 'factoring' is and how it gives access to capital
An intermediary agent that provides cash or financing to companies by purchasing their accounts receivables. It can help companies improve their short-term cash needs by selling their receivables in return for an injection of cash
What is heavy going forward but not going backward?
a ton