AOS 2 unit 1 - legal and financial considerations

Question 1

legal requirements
registering a business name

Answer 1

the title that a business operates under and what customers use to identify the business.

legal requirement for all businesses to obtain an Australian business number. (ABN)
to register a business name with the Australian securities and investments commission. (ASIC)

Question 2

work safe insurance

Answer 2

is a compulsory insurance that assets employers to meet their obligation of financially compensating and supporting employees who become injured or ill because of their work.

enforcing Occupation health and safety laws. (OHS)

Question 3

registering a web domain

Answer 3

is a website address that identifies a businesses online site.

au. domain administration

Question 4

trade practices legislation

Answer 4

is the law that governs how a business interacts with customers and competitors.

The Australian competition and consumer commission (ACCC) governs business operations.

Question 5

business tax compliance

Answer 5

tax compliance is the extent to which an individual or business meets tax obligations.

governed by the Australian Tax Office. (ato)

also a legal requirement to pay tax.

Question 6

role of professionals
legal advisor

Answer 6

is a professional who provides expert advice to businesses regarding their legal responsibilities.

Question 7

marketing advisors

Answer 7

is a professional who provides expert advice to businesses in relation to promoting and selling their products to customers.

Question 8

accountants

Answer 8

is a professional who manages, updates, analyses and reports a businesses financial information.

Question 9

financial considerations
financial control systems

Answer 9

• are processes and procedures used to direct and monitor a businesses finances.

the importance of FCS:
- helps avoid fraud
- low cash flow

Question 10

types of financial control systems

Answer 10

budgeting and auditing

B- involves estimating a businesses future financial transactions to ensure it remains in a financially viable position.

A- involves assessing a businesses financial information to verify that it is true and accurate.

Question 11

bank accounts

Answer 11

a bank account is an arrangement made with a bank where a business or individual can deposit and withdraw money.

Helps manage and track all money coming in and out of the business.

helps a business seperate business and personal spending.

The Australian tax office requires owners operating private limited or public listed companies to create a separate bank account for their business.

Question 12

supplier

Answer 12

individuals or businesses that deliver various inputs to another business in order to produce outputs to sell to their customers.

Question 13

choosing appropriate suppliers
Socially responsible suppliers

Answer 13

CSR- is when a business goes above and beyond their legal obligations of a business taking into account the environment, society/community and their employees.

(ethical supplies)

A- business reputation can be improved
earn more revenue as customers are likely to have a better perception of a business that is socially responsible.

D- time consuming to find ethical suppliers
inputs are more costly from ethical suppliers due to increased wage costs.

considerations-
local suppliers, fair and ethical treatment of employees, choosing a supplier with high quality materials.
(quality, location - reduce cost for transportation and reliability.)

Question 14

policies

needs for policies

Answer 14

is an established set of broad guidelines to be followed by all employees.

guide employees to make decisions that meet the businesses expectations and help to avoid legal consequences.

Question 15

procedures

need for procedures

Answer 15

is a series of actions that enable a policy to be put into practice.

step by step guide in the event that an accident may occur.

Question 16

type of policy

Answer 16

Occupational Health and Safety policy so everyone is safe at work.

Question 17

global issues

contracts with overseas suppliers

Answer 17

are individuals or businesses that sell raw materials or resources in a country overseas.

A - wider range of suppliers to choose from.
- business rep will improve if overseas suppliers are provide ethically sourced inputs.

D - time consuming to maintain communication with overseas suppliers due to time differences.
- supples can be damaged during delivery if its a long distance between the business.

Question 18

contracts with overseas retailers

Answer 18

are individuals or businesses that sell goods and services directly to customers overseas.

A- a business can gain a larger audience by having overseas retailers sell its products.
- a business can improve its sales by providing goods and services to a larger audience.

D- bad rep if retailers are engaging in unethical behaviour.
- employees will have to visit the overseas retailers for important meetings.