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business year 11 > unit 2 aos 1 legal requibments for establishing a business > Flashcards

unit 2 aos 1 legal requibments for establishing a business Flashcards

1
Q

ABN

A

An ABN is a unique 11 digit number that identifies your business to the government and community.

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2
Q

website domain

A

A website domain is a website address that identifies a business’s online site.

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3
Q

Trade practices legislation

A

Trade practices legislation
is the law that governs how a business interacts with customers and competitors.

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4
Q

Business tax compliance

A

Tax compliance is the extent to which an individual or business meets tax obligations.

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5
Q

work safe insurance

A

Work safe insurance
is compulsory insurance that assists employers to meet their obligation of financially compensating and supporting employees who become injured or ill because of their work

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6
Q

External professionals

A

External professionals are highly-skilled individuals that businesses hire to provide expertise in a particular area
of operation.

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7
Q

Financial advisor

A

A financial adviser
is a professional who provides expert advice to individuals and businesses in relation to monetary matters, personal finances, and potential investments.

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8
Q

Accountant

A

An accountant is a professional who manages, updates, analyses, and reports a business’s financial information.

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9
Q

Legal advisor

A

A legal adviser is
a professional who provides expert advice to businesses regarding their legal responsibilities.

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10
Q

Information and Communications Technology Specialist

A

An Information and Communications Technology (ICT) specialist is a professional who develops and maintains the technological systems that are used by businesses to store and retrieve data

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11
Q

Marketing advisor

A

A marketing adviser
is a professional who provides expert advice to businesses in relation to promoting and selling their products.

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12
Q

Financial performance

A

Financial performance is how well a business
is able to manage its expenses and revenue over a period of time. This can be determined by evaluating the business’s overall profits or losses.

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13
Q

Bank account

A

A bank account is an arrangement made with a bank where a business or individual can deposit and withdraw money.

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14
Q

Financial control systems

A

Financial control systems
are processes and procedures used to direct and monitor a business’s finances.

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15
Q

Business reports

A

Business reports
are documents created periodically throughout the year to provide owners and stakeholders with a summary of the business’s overall financial performance.

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16
Q

Budgeting

A

Budgeting involves estimating a business’s future financial transactions to ensure it remains in a financially viable position.

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17
Q

cash flow

A

Cash flow is the amount of money, or cash, coming in and out of the business over a period of time

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18
Q

Record keeping strategies

A

Record-keeping strategies
are methods used to keep track of the financial transactions of a business over a period of time.

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19
Q

Cash books

A

Cash books are manual or electronic books where all cash transactions within
a business are recorded.

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20
Q

supplier

A

are individuals or businesses that provide the resources required to produce goods and services.

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21
Q

inputs

A

Inputs are the resources used by a business to produce goods
and services.

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22
Q

outputs

A

Outputs are the final goods or services produced as a result of
a business’s operations system, that are delivered or provided to customers

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23
Q

Cost-conscious customers

A

Cost-conscious customers
purchase goods or services primarily based on price. If another business offered a cheaper alternative, these customers would be likely to switch immediately.

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24
Q

Sustainability

A

Sustainability involves making an effort to ensure natural resources are not permanently depleted
or damaged by business activities

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25
Q

Socially Responsible Suppliers

A

this means ensuring that a businesses upstream suppliers are following proper environmental practices and ensuring safe working conditions and fair wages for workers.

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26
Q

CSR

A

is the ethical conduct of a business beyond legal obligations, and the consideration of social, economic, and environmental impacts when making business decisions.

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27
Q

policies

A

Policies are written statements that outline the expected performance and behaviour of employees.

28
Q

Procedures

A

Procedures are a series of actions that employees must follow in order to abide by the business’s policies.

29
Q

Overseas suppliers

A

Overseas suppliers are individuals or businesses that sell raw materials or resources in a country overseas.

30
Q

Free trade

A

Free trade is being able to buy and sell goods or services internationally with minimal government restrictions or rules.

31
Q

Overseas retailers

A

Overseas retailers are individuals or businesses that sell goods and services directly to customers overseas.

32
Q

Customer database

A

A customer database is a collection of information about existing and potential customers.

33
Q

the importance of creating a business bank account

A
  • Enables a business to separate business and personal spending.
  • Enables a business to properly calculate its bank balance and understand its financial position.
  • Enables a business to accurately lodge its tax returns.
34
Q

The importance of establishing financial control systems

A

Can help businesses avoid:
* large financial losses
* fraud
* financial mismanagement
* low cash flow

35
Q

The importance of budgeting

A

-Avoid large financial losses
-Helps detect fraud
-Avoid financial mismanagement
-Avoid low cash flow

36
Q

the importance of auditing

A

-Avoid large financial losses
-helps detect fraud
-Avoid financial mismanagement

37
Q

the importance of establishing
record-keeping strategies

A

Enables a business to accurately keep track of financial transactions.
* Enables a business to prove financial transactions that need to be reported when lodging tax
returns to the ATO.
* Enables a business to conduct valid audits.
* Enables a business to form accurate business report

38
Q

The importance of maintaining cash books

A

-Keeps track of financial transactions
-Proves financial transactions that need to be reported for tax returns
-Enables a business to conduct valid audits
-Enables a business to form accurate business reports

39
Q

Advantages of choosing socially responsible suppliers

A

-A business’s reputation can be improved when working with socially responsible suppliers, therefore improving its competitiveness.
- Employees may be more motivated to work at a socially responsible business and contribute to achieving objectives.
-A business can earn more revenue as customers are likely to have a better perception of a business that is socially responsible.

40
Q

disadvantages of choosing socially responsible suppliers

A

-Businesses may have less choice of suppliers when deciding on suppliers that meet their CSR objectives.
* Socially responsible suppliers may not offer certain inputs needed for production.
* It may be time-consuming to find ethical suppliers or communicate expectations to suppliers.
-Inputs may be more costly from ethical suppliers due to increased wage costs compared to cheaper, less ethical suppliers.

41
Q

what does the Equal Opportunity Act achieve

A
  • Workplace bullying and harassment policy
  • Inclusion and diversity policy
42
Q

what does the Occupational Health and Safety Act achieve

A
  • Emergency policy
  • Occupational Health and Safety policy
43
Q

Type of policies that influence procedures created to establish business routines

A

Customer service policy
establishes the procedure of a Method for dealing with customer complaints.

44
Q

advantages of policies and procedures

A
  • Policies and procedures can ensure employees are aware of, and following, necessary legislation.
  • When establishing policies and procedures, management must communicate these to employees. This can improve the relationship between employees and management
  • Once policies and procedures have been implemented, a business can save on time spent repeating rules and processes to employees.
45
Q

disadvantages of policies and procedures

A
  • Business objectives may not be achieved if the policies and procedures are not communicated properly to employees.
  • It may be time-consuming to find out which legislation applies to a business and to create the required policies and procedures after doing so.
  • It may be time-consuming to implement, manage, review, and update policies and procedures consistently if they are not being followed by employees, or the legislation changes.
46
Q

How customer databases can impact a business’s decision-making

A
  • A business may choose to train staff so they can easily access and manage customer data on the database.
  • utlizing the given data to forecast customer insights

-to detect throguh data if there are particlur goods or services at a higher demand, allowing the business to restock achiving operational efficiency

  • creating marketing strategies to ensure customer retention such as cotton on perks cards and emaling sales.
47
Q

disadvantages of customer databases

A
  • Poor management of customer databases can lead to private customer information being hacked or leaked, negatively impacting the business’s reputation
  • It may be time-consuming to gather and record customer information.
  • It may be time-consuming to train
    staff to update customer databases.
48
Q

advantages of customer databases

A
  • Customer databases can enable a business to predict the desires of potential customers and produce goods and services that satisfy these needs, increasing sales.
  • Customer databases can allow a business to maintain relationships with existing customers and meet their needs.
  • A business can quickly identify existing customers when they interact with the business instead of wasting time identifying if they are new or existing customers.
49
Q

How issues with generating contacts with overseas suppliers can impact business decisions

A

the issue of Legal and government restrictions on trade, may impact decision making as
* A business may purchase from overseas suppliers whose resources can be cheaply imported with minimal fees.

  • A business may prioritise using suppliers located in countries that have a free trade agreement with its home country.
50
Q

disadvantages of generating contacts with overseas suppliers

A
  • A business may face negative public perception if its overseas supplier engages in unethical behaviour.
  • Cheaper inputs may be of a lower quality, which can decrease customer satisfaction.
  • It may be challenging to maintain communication with overseas suppliers due to timezone differences.
51
Q

Advantages of generating contacts with overseas suppliers

A
  • A business has a wider range of suppliers to choose from.
  • A business’s reputation may
    improve if overseas suppliers
    provide ethically-sourced inputs.
  • A business may gain access
    to resources that are not readily available domestically.
52
Q

How issues with generating contacts with overseas retailers can impact business decisions

A

one of the issues is Meeting retailer expectations, this may impact business decisions as a business may change its processes to suit the requirements of overseas retailers, such as labelling products in a
specific way.

53
Q

Advantages of generating contacts with overseas retailers

A
  • A business can enhance its customer base by selling its products through overseas retailers.
  • By selling its products in another country, a business can improve its brand recognition.
  • A business owner can minimise expenses associated with establishing their own store overseas.
54
Q

disadvantageous of generating contacts with overseas retailers.

A
  • It may be costly for a business
    to meet product standards and expectations of overseas retailers.
  • A business may gain a bad reputation if overseas retailers engage in unethical behaviour.
  • Customers may not receive the same service experience overseas as they would domestically.
55
Q

how does The role of ICT specialists help a business

A

As ICT specialists are equipped with web development skills and understand technology, they can help create
a business’s website and customer database to store information about existing and potential customers.

56
Q

how does The role of financial advisers help a business

A

A financial adviser can Analyse and assist in the management of current business expenses, this will help the business identify areas in which the business owner spends more than necessary, financial advisers can help a business reduce its expenses and thus, increase profit.

57
Q

How does the role of accountants help a business

A

Accountants can Create financial reports, allowing Business owners to determine if the financial position of
the business is favourable,
or whether corrective action
is required. For example, an income statement might reveal that the business’s expenses are too high and should be minimised to increase profit.

58
Q

how does The role of legal advisers help a business

A

a legal advisor can Protect a business’s trademarks and patents, this ensures the business has exclusive rights to intellectual property. Furthermore, this also ensures the business does not face penalties or lawsuits associated with infringing existing intellectual property rights.

59
Q

how does The role of marketing adviser help a business

A

marketing advisers Develop effective public relations strategies assisting the business to have a strong media and influencer networks, they
can help a business gain publicity and improve its brand awareness.

60
Q

how a business can register a website domain

A

A business owner can go to auDA’s online site, search whether the business’s preferred domain name is already registered, and follow the required steps to create a website domain.2

61
Q

how can a business adhere to trade practices legislation

A

One way a business could comply with trade practices legislation is by ensuring it commits to fulfilling any guarantees and warranties that it offers customers.

Another way a business could comply with trade practices legislation is by ensuring it does not falsely advertise the features and benefits of the goods or services it plans to sell to customers.

62
Q

two external professionals and their roles

A

An accountant is a professional who manages, updates, analyses, and reports a business’s financial information.
-create financial reports, such as an income statement
-These reports summarise financial information so that Business owners can determine if the financial position of
the business is favourable,
or whether corrective action
is required.

A marketing adviser is a professional who provides expert advice to businesses in relation to promoting and selling their products.
- Marketing advisers can help
a business develop the most appropriate advertising campaign to reach the business’s target market.
-wide variety of advertising strategies that a business can choose from, marketing advisers can help the business select the most appropriate advertising methods.

63
Q

3 legal requirements to consider when establishing a business

A

Trade practices legislation
is the law that governs how a business interacts with customers and competitors.
-to ensure its activities align with legal obligations within its relevant industry.

Tax compliance is the extent to which an individual or business meets tax obligations.
-To ensure tax compliance, a business should consider referring to government bodies and documents, or hiring a registered tax agent for advice. If a business does not meet its tax obligations, it may face penalties, fraud charges, or be forced to stop operating.

Work safe insurance
is compulsory insurance that assists employers to meet their obligation of financially compensating and supporting employees who become injured or ill because of their work.
-ensure that businesses are providing a safe working environment for employees by enforcing Occupation Health and Safety (OH&S) laws.

64
Q

3 financial considerations

A

A bank account is an arrangement made with a bank where a business or individual can deposit and withdraw money
-Enables a business to separate business and personal spending.
* Enables a business to properly calculate its bank balance and understand its financial position.
* Enables a business to accurately lodge its tax returns.

Financial control systems
are processes and procedures used to direct and monitor a business’s finances.
-These systems enable business finances to be used appropriately and categorised accurately thus, creating accurate financial statements and business reports
-Financial control systems can establish and assess business practices to prevent fraud and errors.

Record-keeping strategies
are methods used to keep track of the financial transactions of a business over a period of time.
-By making use of these strategies, a business can categorise
its transactions, providing it with information that is used for business reports.
-ATO requires a business to archive written records of transactions for a minimum of five years. If there is no proof of these transactions, a business may face legal consequences.
- keeping a daily record of financial transactions, such as customer sales, may be time consuming and subject to human error. Therefore, a business may purchase software to manage records electronically in order to increase accuracy and save time.

65
Q

1 technological and global issues.

A

A customer database is a collection of information about existing and potential customers.
-enable businesses to make decisions on what goods or services will be most successful for them to offer, and when they should sell these goods or services to attract customers.

Overseas retailers are individuals or businesses that sell goods and services directly to customers overseas.
-businesses need to consider how they will effectively compete with both domestic and international retailers. Establishing contacts with overseas retailers enables businesses to sell their goods and services to international customers.

66
Q

what does the entity principle convey

A

a business should always keep a separate bank account in order to keep accurate records of transactions in the business

business year 11 (7 decks)

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