business management exam

Question 1

External professionals

Answer 1

highly skilled individuals that businesses hire to provide expertise in a particular area of operation.

Question 2

Types of external professionals

Answer 2

-legal advisors
-accountants
-ict specialists
- marketing advisors
-legal advisors
-finacial advisors

Question 3

Accountant

Answer 3

a professional who manages, updates and analyses a businesses financial information.

Question 4

role of accountants

Answer 4

-create financial reports
-ensure legal compliance
-create budgeted reports

Question 5

financial advisors

Answer 5

a professional who provides expert advice to individuals and business in relation to momentary matters.

Question 6

The role of financial advisors

Answer 6

-manage business personal finances
-analyse and assit management with business expenses
-analyse feasibility of business financial goals and recommend possible investment oppurtunities

Question 7

ict spealists

Answer 7

a professional who develops and maintains technological systems that’re used by businesses to store and retrive data.

Question 8

The role of ict specialists

Answer 8

-set up and maintain a website or customer data base.
-ensure legal compliance related to data managment
-provides training to employees regarding privacy and security policies.

Question 9

legal advisors

Answer 9

a professional who provides expert advice to business regarding their responsibilities

Question 10

role of legal advisors

Answer 10

-provide relating advice to drafting contracts
-protect a businesses trademarks and patents
-provide in house counsel for conflicts between stakeholders

Question 11

marketing advisers

Answer 11

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

Question 12

role of marketing advisers

Answer 12

-develop advertising stratergies
-provide branding/design assistance
-develop digital and social media marketing stratergies

Question 13

legal requirements for establishing a business

Answer 13

at the establishment stage of a business its crutial that business owners are aware of their legal requirments and that these upheld.

Question 14

requirements for establishing a business

Answer 14

-registering a business name
-registering a website domain
-trade practices legislation
-business tax compliance
-worksafe insurance

Question 15

business name

Answer 15

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

Question 16

website domain

Answer 16

website address that identifies a businesses online site.

Question 17

trade practices legislation

Answer 17

law that governs how a business interacts with customers and competitiors

Question 18

trade practices legislation obligations

Answer 18

-commit to gurantess and warranties
-do not collude
-do not false advertise

Question 19

tax compliance

Answer 19

the extent to which individuals or business meet tax obligations

Question 20

tax obligations include

Answer 20

-goods and services tax (GST)
-income tax
-pay as you go (PAYG)

Question 21

work safe insurance

Answer 21

compulsory insurance that assists employers to meet their obligation or financially compensating and supporting those who are injured or ill due to work.

Question 22

financial considerations

Answer 22

At the establishement of a business, there are many financial requirements managers must consider.

Question 23

Bank accounts

Answer 23

Arrangements made with a bank where a business or individual can deposit and withdraw money.

Question 24

Importance of establishing a bank account

Answer 24

-enables business to seperate business and personal spending
-Enables a business to properly calculate its bank balance
-enables business to accurately lodge tax returns

Question 25

financial control systems

Answer 25

processes and procedures used to direct and monitior a businesses finances.

Question 26

Importance of establishing financial control systems avoids:

Answer 26

-large financial losses -fraud -financial missmanagement -low cash flow

Question 27

the importance of budgeting

Answer 27

-avoid financial loss -helps detect fraud -avoid financial missmanagement -avoids low cash flow

Question 28

The importance of auditing

Answer 28

-avoids large financial loss -helps prevent fraud -avoid financial missmanagement

Question 29

Record keeping stratergies

Answer 29

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

Question 30

importance of record keeping stratergies

Answer 30

-enables a business to accurately keep track of financial transactions -enables a business to prove financial transactions that need to be reported when lodging tax returns to ATO. -Enables a business to conduct valid audits -Enables a business to form accurate business reports

Question 31

The importance of maintaining cash books

Answer 31

-keeps track of financial transactions -proves financial transactions that need to be reported for tax returns -Enables a business to conduct valid audits -Enables a business to form accurate business report

Question 32

The importance of choosing appropriate suppliers

Answer 32

at their establishement, its important that business owners select appropriate suppliers

Question 33

inputs

Answer 33

resources used by a business to produce goods and services

Question 34

outputs

Answer 34

the final goods or services produced as a result of a businesses operations, given to delivered or provided to customers.

Question 35

importance of. choosing appropriate suppliers

Answer 35

-price -quality -reliability -location -socially responsible suppliers

Question 36

price

Answer 36

business must consider how much suppliers charge for their resources and delivery.

Question 37

quality

Answer 37

customer satisfaction has a direct correlation with the goods or service quality

Question 38

negative impacts of low quality inputs

Answer 38

-less satisfied customers -lowered business reputation -decreased sales

Question 39

reliability

Answer 39

business should opt for suppliers that can deliver required inputs at the required time.

Question 40

unreliable suppliers are more likely to

Answer 40

-make errors -be late with deliveries -cause delays in production

Question 41

location

Answer 41

important for business to consider where suppliers are located

Question 42

nearby suppliers

Answer 42

-reduce cost in transportation -minimises carbon emissions -enhances wellbeing of local community

Question 43

long distnace suppliers

Answer 43

-cheaper resources -increased transport costs -increased likelihood of late or damaged inputs

Question 44

CSR

Answer 44

the ethical conduct of a businesses beyond legal obligations, considering social, economic and environmental impacts.

Question 45

socially responsible suppliers

Answer 45

important for business to review CSR objectives when choosing suppliers