AOS1: Legal Requirements and Financial Considerations

Question 1

Legal Compliance

Answer 1

Process by which a business ensures that it observes and complies with laws and regulations

Question 2

ABN

Answer 2

Australian Business Number

Question 3

What are the key legal and government regulations?

Answer 3

Business name register, Registering website, taxation compliance, trade practices legislation, consumer guarantees, misleading conduct, licenses, by-laws, workplace relations, employment laws, OH&S, Worksafe, equal opportunity and insurance

Question 4

By-law

Answer 4

Local government laws

Question 5

Fair work commission

Answer 5

Regulates workplace relations between employees and employers such as setting minimum wages and conditions and resolving disputes in the workplace.

Question 6

Fair Work Ombudsman

Answer 6

Independent agency of the federal government that acts as a hub of information and advice regarding the workplace relations system. Conducts investigations

Question 7

Occupational health and safety

Answer 7

Aim to prevent accidents

Question 8

Examples of finance professionals

Answer 8

Accountant, Bookkeeper, Bank Manager, ATO

Question 9

What are internal financial controls used for?

Answer 9

To safeguard assets, ensure financial information is accurate and reliable and ensure compliance with all financial and operational requirements.

Question 10

What should internal control procedures address?

Answer 10

Completeness, accuracy, authorization, validity, existence, error handling, segregation of duties, presentation and disclosure.

Question 11

Examples of evidence of financial transactions

Answer 11

Receipts, cash register roll, pay-in book, EFTPOS records, EFT, Credit card transactions, periodic payments, petty cash, cheques

Question 12

What processes should a business put in place for cash control?

Answer 12

Registers should be used and stored securely, cash should be banked regularly, banks statements should be checked

Question 13

Profit or Loss Statement

Answer 13

Provide an outline of the revenue and expenses of the business.

Question 14

What competitive advantages should a reliable supplier bring?

Answer 14

Quality, Timeliness, Competitiveness, Innovation, Finance

Question 15

How can businesses establish and maintain relationships with suppliers?

Answer 15

Settle bills on time, allow lead times for orders, maintain open and frequent communication

Question 16

What criteria should be applied when selecting suppliers?

Answer 16

Price, Quality, Reliability, Social Responsibility

Question 17

Policy

Answer 17

Written statement detailing the processes, procedures, rules and regulations that are expected to be followed in certain situations.

Question 18

Business Routine

Answer 18

Processes that are regularly practiced in a business

Question 19

Examples of workplace policies

Answer 19

Code of conduct, recruitment policy, health and safety, procurement policy, financial management policy, customer service policy and emergency management procedures policy.

Question 20

In terms of technology, planning should ensure that…

Answer 20

-The system is user friendly
-Maintance scheduling is proactive
-Cyver-Security procedures are put in place
-information and records are able to be accessed when required

Question 21

Free trade agreement

Answer 21

Legally binding agreement between countries that establishes an area of trading that removes tariffs and other restrictions.