AOS1 - legal requirements and financial considerations Flashcards
things that need to be done when establishing a business
-register business name with ASIC and set up ABN
-consider registering domain name
-meet all tax obligations such as G&S tax, land, and income tax
-implement health and safety practices
-pay for workcover (insurance)
-not engage in anti-competitive business practices or breach consumer laws
-follow health and zoning regulations
-abide by all local regulations (eg signage, parking, fire escape plan)
explain why it is important to register a website domain
it is important to register a website domain so that you own the website name, and can establish an online presence
explain the role of worksafe
worksafe ensures that employees are protected if they get injured at work, and try to avoid injuries occurring. They enforce the occupational health and safety laws set by the government.
describe what workcover insurance is and who it protects
workcover insurance provides protection if employees get injured at work. it also protects employers against any losses caused by employees
explain what the Competition and Consumer Act 2010 is and which federal body is in charge of administering it
-the competition and consumer act is a piece of legislation which aims to minimise anti-competitive practices, and protect consumers from exploitation
-the federal government administers it
anti-competitive practices
-cartels
-misuse of market power
-exclusive dealing
-mergers and acquisitions
cartels
-cartels are formed when two businesses which would normally be in competition work together and do things such as fix prices
misuse of market power
-businesses with high levels of market power should not use this power to remove competition
exclusive dealing
-this is when a business which trades with another business imposes restrictions on that business’s freedom to deal with other businesses
mergers and acquisitions
-this ensures that any mergers or acquisitions which take place don’t lessen competition
practices that are illegal under the competition and consumer act
-misleading or deceptive conduct
-unconscionable conduct
-unfair contract terms
-bait advertising
-pyramid schemes
misleading or deceptive conduct
-businesses must ensure that consumers are not mislead or deceived by the business
-for example, businesses must not make false claims about their products
unconscionable conduct
-businesses must not engage in conduct which is unfair or goes against good conscious
unfair contract terms
-contracts must be clear and legible, and available to all parties
-this ensures that consumers aren’t negatively affected by contracts which they may not understand.
bait advertising
-this involves businesses advertising their products at low prices without adequate supply, which causes an influx of customers who are then redirected to purchase higher priced items
pyramid schemes
-this involves someone making money by recruiting people, and not providing a good or service
-the people who are higher up on the scheme keep the profits while people at the bottom rarely make money, instead they lose money
what happens if you don’t complete things to establish business
can result in:
-fines
-financial penalties
-lawsuits
-forced closure of business
-loss of reputation, customers, and sales
external professionals
-workers external to business
-hired on temporary basis
