Legal Requirements
What is the name of the Act that governs trade practices in Australia?
Competition and Consumer Act 2010
What is budgeting?
Estimating future financial transactions to help a business remain financially viable.
Name one factor a business should consider when choosing a supplier.
Price, quality, reliability, location, or social responsibility.
What is CSR and why does it matter when dealing with overseas suppliers?
Corporate Social Responsibility ensures suppliers act ethically, which can improve brand reputation.
What is a business policy?
A written rule explaining expected behaviour and performance of employees.
Why is it important for businesses to register a domain name?
So customers can find them online and to protect the business’s online identity.
How can budgeting help avoid mismanagement?
By showing when and how money should be spent.
Why might a business choose a more expensive supplier?
Higher price may reflect better quality, reliability, or ethical practices.
Why might a business choose an overseas supplier despite language barriers?
To access lower costs or unique resources.
What is a procedure in a business context?
Step-by-step instructions for following a policy.
Name two rules under the trade practices legislation businesses must follow.
Honouring guarantees and warranties, avoiding collusion, and avoiding false or misleading advertising.
What is auditing and what does it check?
Assessing financial information to verify it’s true and accurate.
How can poor supplier reliability affect a business?
It may cause delays, missed deadlines, or product shortages.
How can the types of inputs offered by an overseas supplier influence decisions?
Businesses may need specific or rare inputs only available from overseas.
What is the purpose of having both policies and procedures?
To ensure employees know what is expected and how to do it properly.
What does tax compliance involve and who enforces it?
Meeting all legal tax obligations, enforced by the Australian Taxation Office (ATO).
List two ways auditing protects a business.
Prevents fraud and ensures accurate recordkeeping with evidence like receipts.
How does location of supplier influence supplier choice?
Local suppliers reduce transport costs and delivery times; overseas suppliers may have delays.
What tools might businesses use to overcome language barriers with overseas suppliers?
Translators, bilingual staff, or digital translation tools.
What law does an OH&S policy help a business comply with?
Occupational Health and Safety Act
Describe how business structure affects tax rates.
Different structures are taxed differently, companies usually pay a flat rate of 30%, while sole traders and partnerships are taxed at personal income rates.
Explain how budgeting and auditing help prepare a business for financial uncertainty.
Budgeting predicts low cash flow periods and helps plan spending; auditing checks for financial issues to prevent future risks.
What does it mean for a supplier to be socially responsible? Give one example.
Acting ethically and sustainably—e.g. using eco-friendly materials or treating workers fairly.
Explain two global issues that affect supplier decisions and how they impact businesses.
CSR (choosing ethical suppliers), language barriers (impact communication), types of inputs (affect product quality and availability).
Describe how the Privacy and Data Protection Act affects the development of a Privacy Policy.
The Act protects personal information, so the policy ensures customer data is collected, stored, and used responsibly.