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Explain why it is important for businesses to comply with legal requirements?
Failing to abide with the law can have serious consequences for the business and its owners. Such as losing customers and their reputation, being fined, or losing the right to continue trading.
Identify two local government legal requirements?
- Zoning Regulations
- Health services
List 3 external professionals and explain one of them?
- Recruiters
- Marketing Consultants
- Bookkeeping
Bookkeepers assist a business in keeping and processing a businesses financial records.
Identify 3 financial control systems?
- Budgeting
- Inventory control
- Auditing
Define policy and provide an example of one?
A policy is a written set of broad guidelines to be followed by all employees. An example of a policy is a privacy policy.
Explain the Work Health and Safety Act?
A business owner must ensure the health and safety of workers while they are at work or in the business, so far as is reasonable practice.
Explain the separate entity accounting principle?
The separate entity accounting principle states that we should always record transactions of the business and its owners separately.
Explain one financial control system?
Budgeting refers to predicting the businesses financial performance for a given period in the future. By comparing actual with planned results, the business can ask questions to why certain targets were not reached or why results were better than anticipated.
Define procedure and provide an example of one?
Procedure is a series of actions that enable a policy to be put into practice. An example is how to record a complaint.
Outline the benefits of complying with the law?
Can lead to a business outperforming competitors.
Explain WorkSafe insurance (Workcover)?
This government agency aims to reduce workplace injuries and support injured workers.
Identify 3 factors when choosing the right bank account?
- Bank fees
- Interest rates
- Overdraft facility
Identify 3 record-keeping strategies?
- Cash book
- Income statement
- Balance sheet
Explain the impact of technology on businesses?
A business that can incorporate technology into its operations successfully will thrive, while those that are too slow to take up the change are unlikely to experience much success.
List and explain two registrations a business must comply with?
- Business Name Registration, a business must register their name unless it is that of the owners name. They owner must also have an ABN to apply for a business name.
- Registering a domain name, this is the businesses online presence.
Explain ACCC?
Australian Competition and Consumer Commission promotes competition and fair trading across the nation.
Define entrepreneurship?
The act of starting and operating a new business in response to opportunities, assuming all the risk in the hope of making a profit.
Explain one record-keeping strategy?
An income statement is a record-keeping strategy which takes a businesses profit and minuses its expenses to obtain the business gross profit, operating profit, and net profit.
Identify and explain two tax compliances?
- Income tax, companies pay a 25 or 30% tax rate. Individuals pay a progressive tax rate whereby the rate of tax increases with the amount they earn.
- Business activity statement (BAS), a form submitted to the ATO to report a businesses taxation obligations.
Define CSR?
Going above and beyond what is legal required.
List 3 factors when choosing suppliers?
- Price
- Quality
- Proximity