KK1

Question 1

Registering a business name

Answer 1

bus wanting to register a bus name must have a AUS company number (ACN), not free, different from ABN

Question 2

Registering a domain name

Answer 2

a website address which represents your company in an online brand it should be easy to remember and spell

Question 3

Trade practise legislation

Answer 3

laws created by the parliament which protect bus and the consumer of unfair market prac

Question 4

ACCA

Answer 4

Australian Competition and Consumer Commission, that is an independent authority that promotes honesty b/w bus and consumers

Question 5

Competition and Consumer Commission Act 2010: productsaftey

Answer 5

• right to a refund = product unsafe
• bus X comply / Customer right to take legal action

Question 6

Competition and Consumer Act 2010
Price fixing -

Answer 6

Price fixing - illegal for competing bus to get together to gain dominance over customer leaving them no option but to pay high $$$

Question 7

Competition and Consumer Act 2010

imposing min prices on retailers -

Answer 7

illegal for suppliers to attempt to set a minimum price for their products or services that retailers cant sell below purpose if attracting customers

Question 8

Competition and Consumer Act 2010

selling goods below cost-

Answer 8

illegal to sell goods at a below-cost price fro the purpose of eliminating a comp

Question 9

Business tax compliance

Answer 9

compulsory payment % of earnings to the gov
AUS taxation office (ATO) is un charge of collecting tax

Question 10

Business tax compliance
Personal

Answer 10

progressive ( ▲ as the individual earns more $$$)

Question 11

Business tax compliance

GST

Answer 11

broad based tax of 10% on most goods, services, items sold w in Aus

Question 12

WORK SAFE INSURANCE

Answer 12

covers employers for the cost if benefit if employees are injure or become ill bc of their work

Question 13

Why pay tax?

Answer 13

to fund things such as infrastructure, schools, roads ect which help to improve the economy

Question 14

BAnk accounts

Answer 14

used to manage and track all money coming in and out of the business, allowing owners to jeep personal and bus transactions seperate.

Question 15

considerations of bank acc

Answer 15

1. IR
2. proximity to local branch
3. merchant services available eg eftpos facilities

Question 16

DEbit card

Answer 16

own money from bank acc

PRO- no monthly payments or I.R.

Question 17

Credit card

Answer 17

loan from bank
PRO- credit stores
- travel/hotel discounts incentivise spending

CONS- often fees/ I.R’s / annual fee

Question 18

Financial control systems

Answer 18

used to oversee business transactions to prevent fraud and errors

Question 19

FCS helps businesses to avoid…

Answer 19

• large financial loss
• fraud

Question 20

BUDGETING

Answer 20

an estimation of revenue (income) and expenses over a specific time period

Question 21

AUDITING

Answer 21

AN inspecting bus accounts by an auditor to make sure the business is documenting accurately to stay compliant

Question 22

Importance of budgeting

Answer 22

-avoids large financial losses
-prevents fraud

Question 23

Record keeping strategies

Answer 23

a legal req which categorises transactions that provides info used for bus reports

must be kept for 5 years as by the ATO to make sure the business is compliant

Question 24

4 record keeping strategies are

Answer 24

1. source docs
2. maintain cash book
3. prep income statement
4. prep balance sheet

Question 25

RKS :

1. source docs

Answer 25

paper/ electronic docs that provide evidence that a transaction has occurred

Question 26

RKS :

2. maintain cash book

Answer 26

financial journal containing cash receipt and payments

Question 27

RKS :

3. prepare income statement

Answer 27

report company financial performance over a specific accounting period, shows the revenue and expenses, and calculates net profit

Question 28

RKS :

3. prepare balance sheet

Answer 28

summary of business assist and liabilities

Question 29

policies

Answer 29

docs where bus ID their legal obl outlines the broad steps taken to maintain legal compliance

Question 30

procedures

Answer 30

processes to implement to help bus stay compliant

Question 31

policies pr0s

Answer 31

-create efficiency
-efficient decision making

Question 32

policies cons

Answer 32

-time consuming
- require reg review