business management exam Flashcards
External professionals
highly skilled individuals that businesses hire to provide expertise in a particular area of operation.
Types of external professionals
-legal advisors
-accountants
-ict specialists
- marketing advisors
-legal advisors
-finacial advisors
Accountant
a professional who manages, updates and analyses a businesses financial information.
role of accountants
-create financial reports
-ensure legal compliance
-create budgeted reports
financial advisors
a professional who provides expert advice to individuals and business in relation to momentary matters.
The role of financial advisors
-manage business personal finances
-analyse and assit management with business expenses
-analyse feasibility of business financial goals and recommend possible investment oppurtunities
ict spealists
a professional who develops and maintains technological systems that’re used by businesses to store and retrive data.
The role of ict specialists
-set up and maintain a website or customer data base.
-ensure legal compliance related to data managment
-provides training to employees regarding privacy and security policies.
legal advisors
a professional who provides expert advice to business regarding their responsibilities
role of legal advisors
-provide relating advice to drafting contracts
-protect a businesses trademarks and patents
-provide in house counsel for conflicts between stakeholders
marketing advisers
a professional who provides expert advice to businesses in relation to promoting and selling their products.
role of marketing advisers
-develop advertising stratergies
-provide branding/design assistance
-develop digital and social media marketing stratergies
legal requirements for establishing a business
at the establishment stage of a business its crutial that business owners are aware of their legal requirments and that these upheld.
requirements for establishing a business
-registering a business name
-registering a website domain
-trade practices legislation
-business tax compliance
-worksafe insurance
business name
the title that a business operates under and what customers use to identify the business
website domain
website address that identifies a businesses online site.
trade practices legislation
law that governs how a business interacts with customers and competitiors
trade practices legislation obligations
-commit to gurantess and warranties
-do not collude
-do not false advertise
tax compliance
the extent to which individuals or business meet tax obligations
tax obligations include
-goods and services tax (GST)
-income tax
-pay as you go (PAYG)
work safe insurance
compulsory insurance that assists employers to meet their obligation or financially compensating and supporting those who are injured or ill due to work.
financial considerations
At the establishement of a business, there are many financial requirements managers must consider.
Bank accounts
Arrangements made with a bank where a business or individual can deposit and withdraw money.
Importance of establishing a bank account
-enables business to seperate business and personal spending
-Enables a business to properly calculate its bank balance
-enables business to accurately lodge tax returns
financial control systems
processes and procedures used to direct and monitior a businesses finances.
Importance of establishing financial control systems avoids:
-large financial losses
-fraud
-financial missmanagement
-low cash flow
the importance of budgeting
-avoid financial loss
-helps detect fraud
-avoid financial missmanagement
-avoids low cash flow
The importance of auditing
-avoids large financial loss
-helps prevent fraud
-avoid financial missmanagement
Record keeping stratergies
methods used to keep track of the financial transactions of a business over a period of time
importance of record keeping stratergies
-enables a business to accurately keep track of financial transactions
-enables a business to prove financial transactions that need to be reported when lodging tax returns to ATO.
-Enables a business to conduct valid audits
-Enables a business to form accurate business reports
The importance of maintaining cash books
-keeps track of financial transactions
-proves financial transactions that need to be reported for tax returns
-Enables a business to conduct valid audits
-Enables a business to form accurate business report
The importance of choosing appropriate suppliers
at their establishement, its important that business owners select appropriate suppliers
inputs
resources used by a business to produce goods and services
outputs
the final goods or services produced as a result of a businesses operations, given to delivered or provided to customers.
importance of. choosing appropriate suppliers
-price
-quality
-reliability
-location
-socially responsible suppliers
price
business must consider how much suppliers charge for their resources and delivery.
quality
customer satisfaction has a direct correlation with the goods or service quality
negative impacts of low quality inputs
-less satisfied customers
-lowered business reputation
-decreased sales
reliability
business should opt for suppliers that can deliver required inputs at the required time.
unreliable suppliers are more likely to
-make errors
-be late with deliveries
-cause delays in production
location
important for business to consider where suppliers are located
nearby suppliers
-reduce cost in transportation
-minimises carbon emissions
-enhances wellbeing of local community
long distnace suppliers
-cheaper resources
-increased transport costs
-increased likelihood of late or damaged inputs
CSR
the ethical conduct of a businesses beyond legal obligations, considering social, economic and environmental impacts.
socially responsible suppliers
important for business to review CSR objectives when choosing suppliers
