unit 2 aos1

Question 1

external professionals (5 types)

Answer 1

are highly-skilled individuals that businesses hire to provide expertise in a particular area of operation. accountant, financial adviser, ict specialist, marketing adviser, legal adviser

Question 2

accountant

Answer 2

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

Question 3

3 roles of accountants

Answer 3

create financial reports, ensure legal compliance, create budgeted reports

Question 4

financial adviser

Answer 4

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

Question 5

3 roles of financial advisers

Answer 5

manage the owner’s personal finances, analyse the feasibility of a business’s financial goals, analyse and assist in the management of current business expenses

Question 6

ict specialists

Answer 6

a professional who develops and maintains the technological systems that are used by businesses to store and retrieve data.

Question 7

3 roles of ict specialists

Answer 7

set up and maintain a website, ensure legal compliance related to data management, provide training to employees regarding privacy issues

Question 8

legal advisers

Answer 8

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

Question 9

3 roles of legal advisers

Answer 9

provide advice relating to the drafting of contracts, ensure compliance with all relevant laws, provide in-house counsel for conflicts that arise

Question 10

marketing adviser

Answer 10

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

Question 11

3 roles of marketing advisers

Answer 11

develop appropriate advertising strategies, provide branding and design assistance, develop effective public relations (PR) strategies

Question 12

business name

Answer 12

is the title that a business operates under and what customers use to identify the business.

Question 13

website domain

Answer 13

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

Question 14

trade practices legislation

Answer 14

the law that governs how a business interacts with customers and competitors.

Question 15

3 obligations that fall under the trade practices legislation

Answer 15

commit to guarantees and warranties, no collusion, do not falsely advertise goods or services

Question 16

work safe insurance

Answer 16

compulsory insurance that assists employers to compensate and supporting employees who become injured or ill because of their work.

Question 17

bank account

Answer 17

an arrangement made with a bank where a business or individual can deposit and withdraw money

Question 18

3 importances of establishing a business bank account

Answer 18

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.

Question 19

financial control systems

Answer 19

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

Question 20

3 importances of establishing financial control systems

Answer 20

can help businesses avoid large financial losses, detect fraud, avoid low cash flow.

Question 21

budgeting

Answer 21

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

Question 22

auditing

Answer 22

involves assessing a business’s financial information to verify that it is true and accurate.

Question 23

record keeping strategies

Answer 23

are methods used to keep track of the financial transactions of a business over a period of time

Question 24

3 importances of record keeping strategies

Answer 24

Enables a business to keep track of financial transactions. Enables a business to prove financial transactions when lodging tax returns. Enables a business to conduct valid audits

Question 25

which factors affect choosing suppliers (5)

Answer 25

price, quality, reliability, location, socially responsible

Question 26

advantages of socially responsible suppliers (2)

Answer 26

a business’s reputation can be improved by working with these suppliers, employees may be more motivated to work at a socially responsible business

Question 27

disadvantages of socially responsible suppliers (2)

Answer 27

may have less choice/options of supplier, inputs may be more costly compared to cheaper, unethical suppliers.

Question 28

policy

Answer 28

policies are written statements that outline the expected performance & behaviour of employees. examples could be social media or dress code policies. OHS Legislation can influence a business’ policies such as an emergency policy

Question 29

procedures

Answer 29

procedures are a series of actions that employees must follow in order to abide by the business’s policies. Could be an evacuation procedure.

Question 30

customer database

Answer 30

is a collection of information about existing and potential customers.

Question 31

3 advantages of customer databases

Answer 31

predicts the desires of customers, helps the business meet customer needs, can identify and target potential customers by providing offers/deals

Question 32

3 disadvantages of customer databases

Answer 32

customer information could be leaked, time consuming to record customer info, installing the software needed is expensive

Question 33

overseas suppliers

Answer 33

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

Question 34

3 advantages of overseas suppliers

Answer 34

may be cheaper, business reputation may be improved by working with this supplier, may gain access to resources that aren’t readily available

Question 35

3 disadvantages of overseas suppliers

Answer 35

cheaper inputs may be of lower quality, may be communication challenges due to different time zones, delivery may be time consuming and expensive

Question 36

overseas retailers

Answer 36

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

Question 37

3 advantages of overseas retailers

Answer 37

can increase customer base, improve brand recognition, improve its sales

Question 38

3 disadvantages of overseas retailers

Answer 38

may lose some control over marketing, hard to communicate due to different time zones, employees may need to travel overseas to these retailers which may be disruptive to their workflow.

Question 39

what are the 5 legal requirements for a business

Answer 39

Registration of business name, Registration of domain name, Trade practices legislation, Business tax compliance, Work Safe insurance

Question 40

business tax compliance

Answer 40

the extent to which an individual or business meets tax obligations. It is a legal requirement for all businesses to pay tax.

Question 41

employment laws and regulations

Answer 41

are rules that govern the relationship between employers and employees.