Chaper 5- Legal Requirments And Financial Considerations Flashcards
When is it compulsory to register a business name and why?
When it’s not the name of the owner to prohibit anyone else from trading under a similar name, and to protect consumers by allowing them to identify the owner of a business name.
What are the main federal taxes?
Group tax - pay as you go (PAYG)
Goods and services tax (GST)
Fringe benefit tax (FBT)
What is Worksafe Victoria?
It’s a government run agency that aims to prevent workplace injuries and support injured workers.
What is the Competition and Consumer Act 2010 (CCA) and which body is in charge of administering it?
It’s a federal law that specifies what business behaviour is acceptable on a wide range of issues, from product safety and pricing to the way in which business computes in the marketplace. The CCA is administrated by the Australian Competition and Consumer Commission (ACCC), which promotes good business practices across the nation.
Three legal issues addressed by the Victorian Fair Trading Act (1999)?
The three legal issues are unfair contracts, false advertising and product safety.
Why should a business owner have a separate business bank account?
It’s easier to monitor the financial performance and position of the business and calculating business expenses such as bank fees and revenue.
What’s an overdraft facility?
It allows the business to withdraw more money than they have in their bank account because the money from an customer hasn’t been paid yet but is only short term.
What are financial control systems?
They’re used to help businesses monitor, manage and report its financial performance. Common control systems implement relate to its accounting and record keeping systems, auditing and cash flow management.
Why is it important for a business to maintain accurate records?
It serves as an invaluable tool for decision making, it gives the owner an full understanding of how the business is performing, and where improvements need to be made.
Why is it important for a business to choose the right supplier?
By the price factor for keeping the costs low, quality high, reliability good, proximity close and CSR because it needs to be a socially responsible.
What is a stakeholder?
Any individual or group that has an interest or is affected by the activities of a business.
What is a policy?
An approved guideline to be followed by all employees.
What is a procedure?
A step-by-step set actions to enable a policy is put into practise.
Suppliers
Where a business sources their materials
Customers
Globalisation has given businesses greater access to the international markets, businesses now have the opportunity to trade overseas.
