Unit 2 AOS1

Question 1

What is the definition of a policy

Answer 1

A written statement that outlines the expected behaviour and performance of employees

Question 2

What are the 5 legal considerations

Answer 2

Registration of business name, registration of domain name, trade practices legislation, business tax compliance, work safe insurance (RRTBW)

Question 3

What is the definition of Income tax?

Answer 3

The tax that the government

Question 4

What is tax compliance?

Answer 4

The following of tax laws, paying on time and keeping accurate records. Not doing this may result in penalties

Question 5

What is trade practises legislation

Answer 5

Is a set of laws and regulations that aim to ensure fair competition and protect consumers/customers

Question 6

What are suppliers?

Answer 6

The individuals or businesses that supply matériels and resources that a business needs to operate.

Question 7

What are the 5 factors that need to be considered when choosing suppliers?

Answer 7

CSR, cost, reliability, location, quality

Question 8

What are overseas retailers?

Answer 8

Businesses that sell products or services in foreign countries, either through a physical store or online.

Question 9

What is a customer data base?

Answer 9

Customer information used by the business to improve the business itself.
Better relationships with ensuring data privacy result in a better brand name

Question 10

What is a website domain?

Answer 10

Is a unique and user friendly address used to identify the location of the business and helps to access the website easily

Question 11

What are the 5 examples of external professionals?

Answer 11

Accountants, lawyers, marketing advisors, financial advisors, ICT advisors

Question 12

How does an accountant help?

Answer 12

Accountants can help a business complete paperwork, and important financial records such as income statements. Accountants will audit your books and prepare reports for tax purposes.

Question 13

How does a lawyer help?

Answer 13

A lawyer who works internally for a business giving them advice on legal matters.

Question 14

How do financial advisors help?

Answer 14

A financial advisor is someone who is hired to help a business reach specific goals. Their job is to outline strategies and timelines to achieve profits.

Question 15

What is the definition of procedure?

Answer 15

The series of actions that employees must follow when abiding by business policy.

Question 16

What is the difference between policy and procedure in a business?

Answer 16

Policies giver general guidance and consistency, whereas procedures provide detailed instructions for specific tasks within a business

Question 17

What is the role of an ICT advisor?

Answer 17

A consultant who helps a business set up the requires software to help run the business

Question 18

What is the role of a marketing advisor?

Answer 18

Someone who specialises in analysing the marketing strategies that a business is using and then comes up with better ones.

Question 19

Why are bank accounts so important?

Answer 19

In order to keep accurate records for a business, the owner must set up a separate bank account.

Question 20

What is a financial control system?

Answer 20

A financial control system is all the processes a business will follow around their finances. Very important for new businesses to set up

Question 21

What is the definition of ‘external professionals’?

Answer 21

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