4 - Practice Sac Flashcards
Q1 - Outline the importance when starting a business to establish bank accounts, financial control systems, and record-keeping strategies.
It is important to establish bank accounts, financial control systems and record-keeping strategies because it will allow them to keep their personal transactions separate from those of the business, so he is able to establish how the business is operating. Another reason why it is
important is that the owner will be able to more easily determine the figures that they must supply to the
Australian Taxation Office for their Goods and Services Tax and Income Tax requirements.
Q2 - Evaluate the decision to expand a Business Nationally into supermarkets. Include one cost and one benefit of making this decision.
The key advantage of expanding nationally into supermarkets is that it can lead to a larger customer base and larger amount of sales which may lead to a higher profit. However, the disadvantage of this will be the increased costs like transport and time to prepare and the distribution of the product to the supermarkets may reduce the returns on each tub of ice cream. Overall, I believe its a good idea as is it can potentially lead to more sales and increased profit.
Q3 - State Three Legal Requirements that need to be met to establish a business. Include a policy that he may establish to meet each of these requirements.
1 - Supplying relevant and accurate figures to the ATO for Income and GS Taxes. To meet this requirement, the business should establish solid financial record keeping strategies to have these figures ready when needed.
2 - Occupational Health and Safety of staff. To meet this requirement the business must have regular checks on its equipment to make sure that everything is operating correctly to ensure that the staff is safe in the workplace.
3 - Has to make sure that his product meets Health and Safety standards. To do this, the business needs to make sure that the processes that are used to store, produce and transport the product, follow practices that support the current health standards.
Q4 - Why is it important to choose appropriate suppliers? In your response include one
benefit and one limitation of suppliers that may be encountered.
It is important to choose appropriate suppliers as the suppliers will meet the needs of the business, by providing the business with the right resource inputs at a good quality, otherwise, the business will fail to produce a product at the standards of the customers, and at time the customers want it, which would lead to loss of sales and profits.
One benefit of choosing the right suppliers is that it allows the business to increase sales by meeting the needs of the customers.
However, a disadvantage is that finding appropriate and reliable suppliers that provide better quality products, can sometimes be at a higher price, which leads to a lower profit margin and less return on each tub of ice cream sold.
Q5 - When Alex first commenced his global business in Jakarta, he found it difficult to expand the
business export revenue. What is one other technological and one other global issue Alex might
face when he continues to expand his business internationally?
One technological issue that Alex may face when expanding his business is the reliability of the
internet overseas as he may choose this as a means to market his ice cream and if it is not reliable or
if the local population does not have effective access to it he will be unable to contact potential
customers and then therefore increase sales and profits.
A global issue that Alex may face are the local laws and regulations that may exist in the overseas
country that Alex is aiming to sell ice cream into. Alex will need to make sure that he understands all
the local laws otherwise it may be difficult to be able to sell the ice cream into that market.
Q6 - Alex has learned to lay down strong values in the business and team. Policies and procedures are
important to a business. Explain why it is necessary for Alex to implement strong values, policies and
procedures in his business.
Policies outline what the business wants to achieve and the procedures for how it will do it. It is important that a business has suitable policies and procedures as it will give its operations a clear direction and help it meet targets more easily. Also, policies and procedures will help a business meet its legal requirements. It could help a business to make sure to complete its Business Activity Statement for the Goods and Services Tax, so that the business won’t be fined by the ATO.
Q7 - Explain why it may be important for a business to be Socially Responsible in how it
operates.
It is important to be Socially Responsible as it can lead to an improvement in the reputation of
the business and like-minded customers with the same values will shop with him which can lead to
higher sales and profits.
+ 2 Examples: Recyclable packaging, electric vehicles, Ethical suppliers, Above Minimum-wages, Fair-trade, Charity
