U2AOS1 Flashcards
legal requirements before starting a business
What are the steps when registering a business?
- Get an ABN (Australian business name)
- Business name (what you’ve previously registered doesn’t have to be the same)
- Domain name
5 criteria when choosing a name:
- Easy to spell
- Memorable
- Original
- Appropriate
- Descriptive (not necessary)
5 criteria when choosing a domain name:
- 3 Syllables
- Reflect business name
- Easy to remember
- Available for registration via social media
- Alliterative (again not necessary)
Why is it important to meet legal requirements?
If you don’t you can be fined and go to prison. Doing so would challenge the business objective of making a profit.
Propose two reasons why it is important to have a robust financial management system for a business.
- security
- preciseness
Why choose good suppliers?
- timeliness
- quality
- location
- competitiveness
- reliability
Benefits of SR suppliers?
- looks good for business
- can differentiate from competitors
Limitations of SR suppliers?
- the biggest problem is cost
- suppliers may undercut each other at the expense of CSR
What is a policy?
A written guideline of how employees are expected to behave.
What is a procedure?
A series of steps that must be followed to enforce the policy.
Examples of policies that establish business routines:
- OHS
- equal opportunity
- bullying
- food handling
Examples of procedures that establish business routines:
- customer service
- absence or illness
- lateness
- mobile phone use
What needs to be considered when upgrading technology in a business?
- will staff be able to use and access?
- will it make work easier and more efficient?
- what security is in place?
What is globalization?
Refers to the interchange of the world views, procedures, ideas and other aspects of culture.
Global opportunities:
- larger market
- overseas options for production and supply
- free trade agreements (easier without tariffs)
Global threats:
- greater competition
- cheaper labour overseas (bad for the local economy)
- tariffs
What website do you go to when registering a business name?
ASIC
What is a business not allowed to do with policies?
Create policies that don’t build on legislation.
When is a hazard control identification used?
- before something has happened
- a risk has come up
- a potential source of danger is brought to light
What is emergency response planning?
A plan to protect from danger such as having an exit plan.
What is a program administration review?
A regular review of strengths and weaknesses.
What is worker training?
Making staff aware of emergency responses.
Define legislation?
Laws created by parliament through an act of parliament.
How long does a business need to keep records?
5 years
What is included in the trade practises act?
- unfair market practices
- product safety
- price monitoring
- industry codes of practises
Identify which business structures must have a separate business bank account.
A partnership, company or a trust.
Describe the benefits for a sole trader in having a separate business bank account.
Easier to:
• track and control your business expenses and income
• extract the information you need to give to your accountant or to do your tax return yourself when
tax time comes around.
• A business bank account also helps to present your business in a more professional manner
when dealing with your customers.
When is someone entitled to ask a trader for a refund?
-not of acceptable quality
-does not match the description
-does not match the sample or demonstration model
shown to you.
Something can’t be returned when?
- “Change of mind” return
- One-off purchases from private seller eg. Garage sale
- Sale at Auction
- Customer damaged product
