Small Business Management

Question 1

What is GST

Answer 1

Goods and tax services

Question 2

What does ACC stand for ?

Answer 2

Accident compensation corporation

Question 3

What is PAYE

Answer 3

Pay As You Earn

The name given to income tax paid by people in NZ that have an income

Question 4

Define non current liabilities

Answer 4

Long term loans

Question 5

What is the rule of 72%

Answer 5

The formula to estimate the length of time required to double an investment

Question 6

What is a graduated tax system

Answer 6

Different higher% of tax are paid on the dollars earned above certain levels

Question 7

How is ACC funded

Answer 7

Motor vehicle account-petrol
Misadventure account
Residual claims account
Employers account
Earners account
Self employed work account
Non-earner account

Question 8

What features can you add on to life insurance policies

Answer 8

Disabilities and replacement income

Question 9

To which organisation do you apply to become get registered?

Answer 9

IRD

Question 10

Employees get automatic deductions of from their pays

Answer 10

PAYE

Question 11

If you donate money to an organisation that is registered under the charities act 2005 how is that an advantage to you?

Answer 11

You can claim back 33%

Question 12

What is the cheapest life insurance

Answer 12

Term insurance

Question 13

What are the advantages of taking out life insurance younger

Answer 13

Less risk factors

Question 14

Someone can have life insurance from the age of?

Answer 14

10 years old

Question 15

What categories do not have GST registered?

Answer 15

Donations, financial transactions wages

Question 16

How much tax will someone pay that earns between $48,001-$70,000

Answer 16

30% first 14,000 is 10.5%

Between 14,001-48,000 is 17.5%

Question 17

Define financial position

Answer 17

The current next worth of a business or organisation

Question 18

Define non current assets

Answer 18

Buildings or thing you own that you cannot easily turn into cash

Question 19

As the owner of a business what three levies could you be involved with some way?

Answer 19

ACC levies

Question 20

Define current assets

Answer 20

Assets that can be easily transformed into cash

Question 21

Employees recurve direct entitelments if?

Answer 21

Sick leave and holiday pay

Question 22

How much tax will someone who earns over $70,000 pay?

Answer 22

33%

Question 23

Why do you need life insurance on your business partners

Answer 23

In case the business partner dies you unsure them to pay the family estate out

Question 24

ACC is a crown entity responsible for?

Answer 24

Preventing injury
Paying compensation
Producing accident cover
Rehab services

Question 25

What do the following stand for?

GST ACC PAYE

Answer 25

GST-goods and tax services
ACC- accident compensation corporation
PAYE- pay as you earn

Question 26

Business have to be GST registered if they turn over is greater than

Answer 26

$60,000

Question 27

How much will someone earning up to $14,000 pay for tax

Answer 27

10.5%

Question 28

Name four catergories beside PAYE, that ird has responsibility for collecting on behalf of the government?

Answer 28

Child support, student loans, court fines, KiwiSaver

Question 29

What type of tax system does the ACC panty want to use?

Answer 29

A flat rate system

Question 30

What funds is IRD responsible for collecting?

Answer 30

PAYE, ACC, student loans, court fines, KiwiSaver

Question 31

What deductions other than PAYE are made from employees wages and forwarded to IRD

Answer 31

Child support, student loan repayments and KiwiSaver contributions

Question 32

Define financial performance

Answer 32

How well an organisation has performed in 12 month period

Question 33

Define current liabilities

Answer 33

Monthly accounts invoices short term loans

Question 34

How much is GST

Answer 34

15%

Question 35

What kind of tax system is PAYE?

Answer 35

Graduated