govt infleunces Flashcards
what is the role of govt
the role of the govt is to develop rules/policies and implement corporate legislation
establish govt bodies that ensure businesses act within the law
what are the two govt infleunces
ASIC - Australian securities and investment commission
company taxation
what is the role of ASIC
to enforce and administer legalisation particularly the Corporate Act 2001 (Cth)
investigate fraud and other unfair practices
what does the Corporations Act 2001 (Cth) regulate
The Corporations Act 2001 (Cth) regulates corporations’ markets and the provision of finance services to ensure investors and consumers are protected from Fuad
what are the penalties for fraud or unfair practices
monetary penalties or imprisonment as well as reputation
what is the taxation flat rate
27.5%
why is taxation influence on a business’s finances
it is an influence because it reduces the expected returns (profits) of a business
what must a business ensure is up to date?
financial records
why must a financial records be maintained, up to date and accurate
because if profits are overstated, excess taxes are paid, leaving less profits while understating profits leds to tax evasion which can have serious penalities
