Unit 2 AOS1 Flashcards
What is the definition of a policy
A written statement that outlines the expected behaviour and performance of employees
What are the 5 legal considerations
Registration of business name, registration of domain name, trade practices legislation, business tax compliance, work safe insurance (RRTBW)
What is the definition of Income tax?
The tax that the government
What is tax compliance?
The following of tax laws, paying on time and keeping accurate records. Not doing this may result in penalties
What is trade practises legislation
Is a set of laws and regulations that aim to ensure fair competition and protect consumers/customers
What are suppliers?
The individuals or businesses that supply matériels and resources that a business needs to operate.
What are the 5 factors that need to be considered when choosing suppliers?
CSR, cost, reliability, location, quality
What are overseas retailers?
Businesses that sell products or services in foreign countries, either through a physical store or online.
What is a customer data base?
Customer information used by the business to improve the business itself.
Better relationships with ensuring data privacy result in a better brand name
What is a website domain?
Is a unique and user friendly address used to identify the location of the business and helps to access the website easily
What are the 5 examples of external professionals?
Accountants, lawyers, marketing advisors, financial advisors, ICT advisors
How does an accountant help?
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.
How does a lawyer help?
A lawyer who works internally for a business giving them advice on legal matters.
How do financial advisors help?
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.
What is the definition of procedure?
The series of actions that employees must follow when abiding by business policy.
What is the difference between policy and procedure in a business?
Policies giver general guidance and consistency, whereas procedures provide detailed instructions for specific tasks within a business
What is the role of an ICT advisor?
A consultant who helps a business set up the requires software to help run the business
What is the role of a marketing advisor?
Someone who specialises in analysing the marketing strategies that a business is using and then comes up with better ones.
Why are bank accounts so important?
In order to keep accurate records for a business, the owner must set up a separate bank account.
What is a financial control system?
A financial control system is all the processes a business will follow around their finances. Very important for new businesses to set up
What is the definition of ‘external professionals’?
External professionals are highly skilled individuals that businesses hire to provide expertise in a particular area or operation.
