Topic 3: Business Planning Flashcards
Explain why a positive balance of payments (BOP) is desired
If a nation exports goods of more value than it does import, then it is economically good for the nation.
The number of SME Australian exporters is growing faster than large exporters; however only 4% of Australian SMEs export. Explain why this statement is of importance
This statement is important as it illustrates that Australia has potential to expand its exporting network as there is growth in exporting SMEs but the second section of the statement illustrates that this potential has not been tapped into
True or False: Usually there is formal academic requirements to operate a SMEs and tertiary courses are available for those who need to gain academic qualifications
False: Usually there is few or no formal academic requirements to operate a SMEs and tertiary courses are available for those who want to gain academic qualifications
Explain whether a cultural and ethnic background could impact one’s ability to run an SME. Use a culinary business as an example.
Cultural and ethnic background can assist the business owner in running a restaurant with the menu based on the background’s style as they have experience eating and cooking such foods
Recall where business owners have to register their business name
Business owners have to register their business name on ASIC
Recall when is it not mandatory for business owners to register their business name on ASIC
It is not mandatory for business owners to register their business name on ASIC when the business name is their name standalone
Identify what protection registration offer
Registration of a business name offers no protection or establishes any specific rights to that name
If the business name is a crucial part of the business operation, outline what the business owner needs to do to protect it
If the business name is a crucial part of the business operation, then the business owner should register the business name as a trademark with IP Australia
Identify what a business plan must contain
A plan must contain reliable and accurate information in enough detail to be valid, including:
1. A clear, concise statement of the goals of the business
2. Well-developed plans for achieving these goals
3. Reliable control standards for measuring performance
List the taxation levied by the federal government that apply to businesses
PAYG Income, fringe benefits, goods and services, company, and capital gains tax are a number of taxation levied by the federal government that apply to businesses
Identify the features of PAYG income tax
Income tax is:
- Levied by the federal government
- Imposed on the employee
- Taxed progressively
Identify the features of fringe benefits tax
Fringe benefits tax is:
- Levied by the federal government
- Imposed on employee benefits
- 46.5% of the value of the benefit
Identify the features of goods and service tax
Goods and service tax is:
- Levied by the federal government
- 10% add-on
- Imposed on most goods and services
Identify what GST stands for
GST stands for goods and service tax
Identify the features of company tax
Company tax is:
- Levied by the federal government
- 30% of taxable income
