KK1

Question 1

legal requirements

Answer 1

business name registration, website domain, trade practices legislation, business tax compliance, and work safe practices

Question 2

business name registration

Answer 2

ASIC and ABN

Question 3

Website domain

Answer 3

domain name - business’s name on a website

Question 4

Taxation

Answer 4

the government finances its expenditure by collecting money from individuals and businesses.

Question 5

Income

Answer 5

capital gains and provision of goods and services

Question 6

ATO

Answer 6

Australian Taxation office government body in charge of administering and collecting

Question 7

Taxes that affect the business

Answer 7

Income tax, Pay as you go (PAYG) withholding, Goods and services tax (GST), Fringe benefits Tax (FBT), Stamp duty, Land Tax

Question 8

Income tax

Answer 8

Levied on the income of an individual or business.
Companies pay a flat rate tax of 30% or 25% for businesses with a turnover less then $50 mil
Individuals lik sole traders pay progressive tax rate. (rate increases with the amount they earn)

Question 9

PAYG

Answer 9

Taken from an employee’s salary or wage directly
Imposed on the employee

Question 10

GST

Answer 10

10% tax on the supply of goods and services
Businesses are only required to register for GST if they earn $75000 or more in a financial year
Businesses registered for GST must complete a business activity statement BAS

Question 11

FBT

Answer 11

Tax on the provision of a benefit to an employee

Question 12

Stamp duty

Answer 12

Placed on documents that give evidence to transactions

Question 13

Land tax

Answer 13

Annually levied on the owner of the land

Question 14

Work health and safety regulations

Answer 14

Business in victoria have to follow the Occupational Health and Safety Act 2004 (Vic).
WorkSafe Victoria is an organisation that aims to reduce workplace injuries and support injured workers

Question 15

Trade practices legislation

Answer 15

Each major industry has its own code of practice which provides businesses with guidelines for dealing with customers If not been abided by it can result in heavy fines for the business

Question 16

Anti competitive practices

Answer 16

Cartel, misuse of market power, exclusive dealing, mergers and acquisitions.

Question 17

Cartel

Answer 17

if two or more businesses that would normally be in competition with each other agree to act together

Question 18

misuse of market power

Answer 18

The act prohibits businesses with a substantial degree of market power from engaging in conduct that has the purpose or has or is likely to have the effect of substantial lessening competition

Question 19

Exclusive dealing

Answer 19

occurs when one business trading with another imposes restrictions on the other’s freedom to deal with other businesses.

Question 20

Mergers and acquisitions

Answer 20

The act prohibits any mergers of acquisitions that would have the effect or be likely to have the effect of competition being substantially lessened

Question 21

AUS consumer law

Answer 21

Misleading or deceptive conduct
Unconscionable conduct
Unfair contract terms
False or misleading representations regarding goods or services
Offering gifts and prizes in connection with the supply of goods and services and then not providing them
Bait advertising
Pyramid schemes
Referral selling

Question 22

Misleading or deceptive conduct

Answer 22

business musn’t engage in conduct that is misleading or deceptive

Question 23

Unconscionable conduct

Answer 23

business transactions that is unfair or unreasonable and goes against good conscience. illegal to engage in this

Question 24

Unfair contract terms

Answer 24

If a term on a contract would cause significant imbalance between the business’s rights and obligations

Question 25

False or misleading representations regarding goods or services.

Answer 25

a statement that is untrue

Question 26

offering gifts and prizes

Answer 26

in connection with the supply of goods and services and then not providing them

Question 27

Bait advertising

Answer 27

products at reduced prices without a reasonable supply for customers to buy. When it runs out the customers are directed to higher priced itemsP

Question 28

Pyramids schemes

Answer 28

person or business makes money by recruiting people, rather than providing a genuine good or service.

Question 29

Referral selling

Answer 29

when a business offers a customer benefits, if the customer refers other potential customers to the seller

Question 30

Unsolicited consuemr agreements

Answer 30

agreements result from negotiations by phone or location other than the seller’s place of business.

Question 31

Lay-by agreements

Answer 31

the agreement must specify all terms and conditions, including any termination charge

Question 32

proof of transaction and itemised bills

Answer 32

a retailer must provide an itemised bill on request

Question 33

Consumer guarantees

Answer 33

Consumer will gain clear legal title to goods, goods must correspond to any sample, demonstration model, goods must be of acceptable quality, products must be fit for a particular purpose, repairs and spare parts are reasonably available, services are carried out with reasonable care and skill, services are completed within a reasonable time.

Question 34

Local government and legal requirements

Answer 34

Local governments have control over
land zoning
new development applications
fire regulations
parking regulations
health regulations
business signs