Legal Requirements
Name one legal requirement for a business.
registering the business name, registering a website domain, trade practices legislation, business tax compliance and work safe insurance
Give one reason why a business should keep their bank account separate from their personal account?
ØThe business is a separate entity from the person, therefore finances should be separate.
ØEasier to keep track of financial performance
ØFees such as interest are separate from personal expenses
ØEnables a business to separate business and personal spending.
ØEnables a business to properly calculate their bank balance and understand their financial position.
ØEnables a business to accurately lodge its tax returns.
What are suppliers?
Suppliers are the businesses or individuals that provide a business with the inputs (materials or other resources) needed for operation.
Policies meet _____ requirements.
Legal
How should businesses respond to technological changes?
Quickly
Which organisation do you need to engage with in order to register your business legally?
Australian Securities and Investments Commission (ASIC)
Give one example of a financial control system.
Budgeting
or
Auditing
Give one advantage and one disadvantage of business choosing a supplier that is socially responsible.
Advantage
Disadvantages
Policies tells an employees and customers...
A businesses rules and expectations
What are two thing a business must consider when establishing a customer database
ØCost – time consuming if owner builds their own, $$ if purchased
ØPrivacy – businesses need to consider that details are well protected from hackers
ØLegislation when handling personal information – Privacy Act 1988 (Cwth) governs the way that businesses can gather, use, keep sercure and disclose personal information.
Which external professional might you consult if you ran into legal troubles?
Solicitor, or Lawyer.
What is this called?
"When the owners finances are separate to that of the business and therefore should be recorded separately --> this is easier to do with separate bank accounts."
Seperate legal entity
Explain the benefits choosing a supplier who in a good location?
Good will likely arrive in a shorter time period, also saving freighting fees.
What are 3 common policies?
Dress code policy
Training policy
Equal-opportunity policies
Smoking policy
Environmental policy
Anti-bullying policy
Use of Email or Technology policy
Why should a business establish customer database
ØAllows the business to easily communicate with customers.
ØImproving customer relationships and supporting the business in providing better service
ØRemaining in contact with customers builds loyalty and repeat business.
List 5 legal requirements.
business name, registering a website domain, trade practices legislation, business tax compliance and work
safe insurance
Why are financial control systems important? Give two reasons.
Ø Without these systems, you won’t know if your business is making money!
Øestablish and assess business practices that prevent fraud and errors.
Ø The government requires record to be kept for tax purposes.
Ø Allows the owner to make decisions about the future of the business.
Ø Allows the owner to present the financial information to potential investors or partners.
Define Corporate social responsibility.
Corporate social responsibility is the ethical conduct of a business beyond legal obligations, and the consideration of social, economic and environmental impacts when making business decisions.
What are procedures
a series of actions that enable a policy to be put into actions.
•The purpose of procedures is to provide employees with a step by step guide to follow in specific situations or events.
What are 2 advantages of using suppliers overseas?
• A business has a wider range of suppliers to choose from.
• A business’s reputation may improve if overseas suppliers provide ethically sourced inputs.
• A business may gain access to resources that are not readily available domestically.
• A business may have access to cheaper resources overseas.
What is Trade Practice legislation?
Give one example
are laws which govern how a business interacts with customers and competitors.
E.g. No false advertising, No colluding.
Define record-keeping strategies.
ØRecord all transactions (expenses and revenues) in a table, excel or a software program such as Quickbooks or MYOB over a period of time.
Name all five factors that a business should consider when choosing a supplier.
Price, quality, reliability, proximity & corporate social responsibility.
What is the difference between policies and procedures
- Procedures resolve a dispute brought about by a breach of a policy.
- Policies are written down wheres procedures are action put into practice.
Define customer database.
•is a organised collection of information on existing and potential costumers, including details such as their contact information, personal details, previous interactions with the business, buying habits and preferences.