Unit 2 Chapter 4 Flashcards
Legal and financial considerations
external professionals
highly skilled individuals that businesses hire to provide expertise in a particular area of operation.
accountants
manage, update, analyse and report a business’s financial information
○ financial reports
○ legal compliance
○ budgeted reports
financial advisers
provide expert advice to individuals and businesses in relation to monetary matters, personal finances and potential investments.
○ manage owner’s finances
○ feasibility of goals + opportunities
○ management of expenses
ICT specialists
develop and maintain the technological systems that are used by businesses to store and retrieve data.
○ website and customer database
○ legal compliance
○ privacy and security training
legal advisers
provide expert advice to individuals and businesses in relation to monetary matters, personal finances and potential investments.
○ contract advice
○ law and regulation compliance
○ protect trademarks and patents
○ in-house counsel
marketing advisers
provide expert advice to businesses in relation to promoting and selling their products.
○ advertising strategies
○ branding and design
○ digital marketing strategies
○ public relations strategies
business name
the title that a business operates under and what customers use to identify the business.
decide > prepare abn > follow steps > operate
website domain
a website address that identifies a business’s online site.
trade practices legislation
the law that governs how a business interacts with customers and competitors.
○ commit to guarantees and warranties
○ do not collude
○ do not falsely advertise
tax compliance
the extent to which an individual or business meets tax obligations.
income tax, pay-as-you-go, gst, tax returns
work safe insurance
compulsory insurance that assists employers to meet their obligation of financially compensating and supporting employees who become injured or ill because of their work.
WorkSafe Victoria
○ safe work environments
○ OH+S laws
○ prevent work injuries
○ provide WorkCover insurance
bank accounts
an arrangement made with a bank where a business or individual can deposit and withdraw money.
visit bank > agree to rates + fees > verify > use
financial control systems
processes and procedures used to direct and monitor a business’s finances.
(budgeting + auditing)
avoid: financial loss, fraud, mismanagement, low cash flow
record-keeping strategies
methods used to keep track of the financial transactions of a business over a period of time.
(cash books)
Corporate social responsibility (CSR)
the ethical conduct of a business beyond legal obligations, and the consideration of social, economic and environmental impacts when making decisions.
policies
written statements that outline the expected performance and behaviour of employees.
investigate laws > assess goals > create > review > present > update
policy legislation
○ Equal opportunity act
○ Privacy and data protection act
○ Occupational health and safety act
○ Competition and consumer act
procedures
a series of actions that employees must follow in order to abide by the business’s policies.
assess policies + legislation > create > present > review and amend
customer database
a collection of information about existing and potential customers.
customer database issues
○ Storing customer data
○ Storing sensitive information
○ Accessing customer data
○ Buying data from other companies
○ Generating own customer database
overseas suppliers
individuals or businesses that sell raw materials or resources in a country overseas.
overseas suppliers issues
○ Legal and government trade restrictions
○ CSR of suppliers
○ Types of inputs offered
○ Language barriers
overseas retailers
individuals or businesses that sell goods and services directly to customers overseas.
overseas retailers issues
○ Legal and government trade restrictions
○ Meeting retailer expectations
○ CSR of retailers
