unit 2 chapter 4 and 5

Question 1

Australian Businesses must comply with __________ that protect ______________

Answer 1

• laws that promote fair business practices and protect workers, consumers and businesses
• manintaing financial requirements
• and achieve this by developing polices and procedures

Question 2

types of legal and governement regulations

Answer 2

-licences, permits, approvals and statutory regulations

Question 3

business name registration (legal requirment)

Answer 3

• must register with Australian securities and investment commision if the name is different to owner
• ABN is must have

Question 4

protecting business name

Answer 4

to protect business name it should be registered as a trademark with I.P
-companies can register as a private or public

Question 5

registering a domain name

Answer 5

=a website address or a domain name is important for promoting a business and making it more accessible

Question 6

taxation regulations

Answer 6

businesses and individuals are taxed on income, captial gains and goods and services

Question 7

ATO

Answer 7

the australian taxation office collects and administers tax for the federal government
- businesses must apply for a tax file number

Question 8

businesses income tax

Answer 8

30% for large businesses or 27.5% for turnover less than 50 million

Question 9

individual income tax

Answer 9

is porgressive as income increases

Question 10

business acitivity statement

Answer 10

reports of taxation obligations must be lodged periodically with the ato

Question 11

work health and safety regulations

Answer 11

employers must ensure health and safety of works while they are at work
-commonwealth work health and safety act (2011)

Question 12

worksafety insurance (workcover)

Answer 12

is compulsory for victorian employers

it covers the cost if employers become injured or sick due to work

Question 13

worksafe victoria

Answer 13

overseas workcover and ensures employers are not breaching health and safety laws

Question 14

consumers protection and fair competition

Answer 14

commonwealth competition and consumer act (2010)

ensures businesses and consumers are protected from unfair trading practices

Question 15

ACCC

Answer 15

Australian competition and consumer commission enfores the act by ensuring safety of products and controlling pricing and competition between businesses

Question 16

code of practice

Answer 16

are guidelines for dealing with customers and must be followed to avoid large fines

Question 17

consumer affairs victoria

Answer 17

overseas consumer law in victoria ensuring businesses follow the australian consumer law and fair trading act 2012

Question 18

anti-competitive practices that are illegal

Answer 18

1. cartels - businesses agree to act together
2. misuse of market power- lessening competition
3. exclusive dealing - impose unfair restrictions
4. resale price maintenance - supplier sets price
5. mergers and acquisitions - when limit competition

Question 19

the australian consumer law

Answer 19

the law that stops misleading and illegal practices
deception, such as false advertising
unconscisionable conduct
unfair contract terms
false statements
offering gifts and prizes and not providing them
bait advertising
pyramid schemes, recuriting people to sell goods
referral selling, customers are offered benefits

Question 20

lawful sales practices

Answer 20

1. unsolicited consumer agreements for example door to door sales
2. lay by agreements- must be in writing
3. proof of transations and itemised bill on request

Question 21

consumer guarantees

Answer 21

rights and obligations that protect consumers

Question 22

local government regulations

Answer 22

control land zoning (land use), parking, fire prevention, health regulations and new developments and upgrades to buildings
zoning regulations are inplace to ensure resisdential and business, industrial factors are seperated

Question 23

local concils involved in planning

Answer 23

councils ensure businesses comply with health regulations under food act 1984
must meet standards to obtain/retain licence

Question 24

the levels of government

Answer 24

federal- income tax and company tax, gst , bas, immigrations laws
State - workplace health and safety. land tax, business development
Local- land zoning, parking regulations , signage, development applications

Question 25

a seperate bank account is important

Answer 25

because
‘seperate entity’ accounting principle, business transactions should be seperate to the business owner’s personal finances
easier to calculate expenses for taxation purposes

Question 26

factors to consider when choosing a bank account

Answer 26

• bank fees, hidden fees are legal
• interest rates, impacts money paid for loans and money earnt on investments
• overdraft facility, withdraw more money than customer has in the bank
• credit cards, the convenience

Question 27

finances should be managed and monitored

Answer 27

to aviod theft and fraud and poor management leading to lack of cash flow

Question 28

budgeting

Answer 28

predicting the financial performance for a given period in the future sheets, monthly , quarterly or yearly budgets

Question 29

cash flow management

Answer 29

managing cash flow is critical is needed for day to day expensive

Question 30

what is marketing

Answer 30

marking is the total system of interacting to plan price promote and distribute products to existing and potential customers

Question 31

customer profile includes

Answer 31

location ,age, demographic and interests, needs

Question 32

80-20 princible

Answer 32

80 precent of sales should come from 20 precent of loyal customers

Question 33

main objects if marketing

Answer 33

to increase sales, to increase market share and expand business size

Question 34

marketing plan is now

Answer 34

mostly customer oriented, how can the business satisfy the needs of the customer

Question 35

what is market segmentation

Answer 35

dividing the market in smaller groups with similar characteristics is called market segmentation

Question 36

what are the market dimensions

Answer 36

demographic, geographic, psychology, behaviour

Question 37

what is customer trends

Answer 37

over time as customer tastes and preferences change due to life style adjustments due to economic, social and environmental issues

Question 38

the 7 P’s

Answer 38

price, product , place, promotion, people, physical evidence and process

Question 39

tangible products vs intangible products

Answer 39

physical products vs the atmosphere and experience of service

Question 40

the product life cycle

Answer 40

introduction, growth, maturity, decline and extension