Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

unit 1/2 business management > unit 2 outcome 1 > Flashcards

unit 2 outcome 1 Flashcards

1
Q

what do businesses risk when they do not obey the law?

A
  • losing customers
  • losing reputation
  • being fined
  • losing the right to continue trading
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

where does a business go to register it’s name?

A

the ASIC (Australian Securities and Investments Commission)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

why would businesses need to register their name?

A

when the name is not the same as the business owner’s name

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

when do businesses NOT need to register their name?

A

when the name is the same as the business owner’s

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

if the business name is the same as the owner’s, but with “pty ltd” “and co” “and associates” etc on the end, does it need to be registered

A

yes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

why do businesses register their names?

A

to prohibit anyone else from trading under the same / similar name

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what do business owners need in order to register a business name

A

an Australian Business Number (ABN)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what should a business do to further protect or establish specific rights to the name?

A

register the business name as a trademark or copyright it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

where can a business register a domain name (address of it’s website on the internet)

A

the Australian Domain Administration website

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what should a business keep in mind when registering a domain name?

A
  • choose a name that represents it’s activities

- make it easy to spell and remember for customers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

how much does it cost to register a domain name

A

generally $10 to $100 a year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

who is in charge of administering and collecting tax for the federal government?

A

the Australian Taxation Office (ATO)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what do businesses need to obtain from the ATO to manage tax and other government services

A

a Tax File Number (TFN)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what is a tax file number?

A

a unique number issued by the Australian Taxation Office

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what percentage of income do larger businesses pay in tax?

A

flat rate of 30%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what percentage of income do businesses with a turnover less than $50 million pay in tax?

A

27.5% for turnover less than $50 million

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what is a goods and services tax?

A

broad based tax of 10% on the supply of most goods and services supplied in Australia

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

what are the major federal taxes that apply to businesses?

A
  • pay as you go
  • goods and services tax
  • fringe benefits tax
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

what are the major state taxes that apply to businesses?

A
  • stamp duty

- land tax

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

what is the principle legislation covering occupational health and safety in victoria?

A

the Occupational Health and Safety Act 2004

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

what is WorkSafe and what do they do?

A

a government agency that aims to reduce workplace injuries and support injured workers.
They have the power to inspect worksites and prosecute employers for breaches of requirements. They also provide employees with insurance cover if they are injured.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

what is a code of practise?

A

a written set of guidelines that are intended to help businesses achieve the standards set by the government

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

what is a merger?

A

the joining together of two or more businesses to form one business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

what is acquisition?

A

when one business takes over another business

25
Q

what are some things that the Australian Consumer Law prohibits / makes illegal?

A
  • misleading or deceptive conduct
  • unfair contract terms
  • false representations of goods and services
  • bait advertising
  • pyramid schemes
  • offering gifts with the supply of goods / services and not providing them
26
Q

what are some consumer guarantees under the Australian Consumer Law?

A
  • the consumer gains legal titles to the goods
  • goods must correspond to samples
  • goods must be of acceptable quality
  • repairs / spare parts are reasonably available
  • services are carried out with reasonable skill
27
Q

what are the two purposes of legal requirements created by the government?

A
  • to protect consumers from dangerous or unsuitable products
  • to ensure maximum levels or fair competition between businesses
28
Q

what are the main responsibilities of the federal government?

A
  • taxation
  • foreign affairs
  • defence
  • social security
  • health
  • education
  • aboriginal welfare
  • trade
  • communication
  • immigration
29
Q

what are the main responsibilities of the state government?

A
  • law and order
  • housing
  • health
  • education
  • transport
  • industry and business development
30
Q

what are the main responsibilities of the local government?

A
  • parks
  • rubbish
  • minor roads
  • street lighting
  • zoning
  • signage
  • development applications
  • health regulations
  • fire regulations
31
Q

why should businesses and business owners have seperate bank accounts?

A
  • ‘seperate entity’ principle states we should always record transactions separately
  • easier to monitor financial performance
  • easier to calculate expenses and revenue like bank fees and interest
32
Q

what is ‘seperate entity’?

A

an accounting principle recognising that the owner’s finances are seperate to those of the business

33
Q

what are the factors to consider when choosing the right bank account?

A
  • bank fees
  • interest rates
  • overdraft facility
  • credit cards
  • convenience and support
34
Q

what are financial control systems?

A

the processes, methods and tools that allow a business to accurately monitor and manage it’s financial performance

35
Q

what are the financial control systems?

A
  • budgeting
  • cash flow management
  • control of accounts receivable
  • inventory control
  • auditing
36
Q

what is budgeting?

A

estimating the businesses financial performance for a given period in the future

37
Q

what is cash flow?

A

the money being transferred into and out of the business

38
Q

what is accounts receivable?

A

the outstanding payments a business is owed by it’s customers

39
Q

what is inventory control?

A

ensuring the business has access to the right amount of materials when required (not too much, not too little)

40
Q

what is auditing?

A

the process of testing and evaluating a business’s accounting processes and internal control

41
Q

what are the record keeping systems and strategies?

A
  • source documents
  • cash book
  • income statement
  • balance sheet
  • other (bookkeeping etc.)
42
Q

what are source documents?

A

written documents that provide evidence of a financial transaction

43
Q

what is a cash book?

A

a summary of all the business’s cash receipts and cash payments

44
Q

what is an income statement?

A

a financial report used to help businesses calculate how much profit it had made over a period of time

45
Q

what is a balance sheet?

A

shows a businesses asset’s and liabilities at a point in time

46
Q

what is bookkeeping?

A

the keeping and processing of a business’s financial records (can be done online or through someone hired)

47
Q

what is a procurement?

A

the process of researching and selecting suppliers, establishing payment terms, negotiating contracts and the purchase of resources

48
Q

what must a business consider when choosing suppliers?

A
  • price
  • quality
  • reliability
  • proximity
  • corporate social responsibility
49
Q

why must a business develop policies and procedures?

A

to establish and communicate basic expectations about behaviour and decision making

50
Q

what is a policy? + an example

A

a written set of broad guidelines to be followed by all employees
e.g. school policy on bullying

51
Q

what is a procedure? + an example

A

a series of actions that enable a policy to be put into place
e.g. how to handle a complaint in a business

52
Q

list some typical policies used in businesses

A
  • recruitment policies
  • occupational health and safety policies
  • privacy policies
  • anti discrimination policies
  • drug and alcohol policies
  • customer service policies
  • environmental policies
53
Q

what are the benefits of establishing policies and procedures?

A
  • help employees know what is expected of them
  • provide a framework for decision making
  • allow management to have method of dealing with complaints
  • prevent legal problems
54
Q

what are the disadvantages of establishing policies and procedures?

A
  • researching and writing policies takes time and money
  • can be difficult to communicate large policies throughout the business
  • employees might view policies as a substitute for effective management
  • can restrict innovation and flexibility
55
Q

what is the process for developing policies that ensure compliance with legal requirements?

A
  1. identify an issue
  2. research and analyse business environments
  3. consult stakeholders
  4. develop a draft policy
  5. revise the policy
  6. approve and distribute the policy
  7. monitor and evaluate policy
56
Q

why should a business owner consider technological and global issues when establishing a business?

A

to ensure the business gains an advantage to competitors, and to keep up with trends.

57
Q

how can a business use technology to it’s advantage?

A
  • 3D printing / robots can perform to higher accuracy than humans
  • social media can be used to advertise
  • smartphones can allow a business owner control to multiple aspects on one device (emailing, live footage etc.)
  • remote / flexible work arrangements (zoom, work at home etc.)
  • establishing a customer database
58
Q

how can a business use global issues to it’s advantage?

A

the business can gain access to overseas suppliers, resources, customers and retailers (due to globalisation)

unit 1/2 business management (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions