Untitled Quiz

Business Name

• A title used to identify a business.
• Customers use it to identify a business.
• Registration is required for an online business using an address or name.
• Choose a name, check with ASIC, follow steps, apply for a trademark.

Website Domain

• The website address of a business.
• Businesses should search online to check if a chosen domain name is available or trademarked.

Trade Practices Legislation

• Laws governing business interactions with customers and competitors.
• Australia has laws to protect businesses and consumers.
• Industry-specific legislation exists to ensure fair interactions.
• The Competition and Consumer Act 2010 governs Australian business practices.
• The ACCC (Australian Competition and Consumer Commission) enforces these laws.

Business Tax Compliance

• Different businesses have different tax requirements.
• All businesses are required to pay tax.
• The Australian Taxation Office (ATO) administers and collects taxes.
• Taxes are imposed on income, capital gains, and goods and services (GST).
• State and federal governments collect taxes.

Taxation Compliance

• Tax is how governments fund their expenses.
• Businesses (sole traders, partnerships, and companies) need a tax file number (TFN) separate from personal TFNs.

Work Safe Insurance

• Laws (Occupational Health and Safety Act 2004) are in place to protect health and safety.
• Reducing workplace injuries is the goal.
• Insurance and cost benefits are provided.
• Compensation and legal costs are covered.
• Employers can be prosecuted for failing to meet health and safety standards.

Professionals in Business

• Freelancers - Independent workers who work per job, e.g. photographers.
• Bookkeepers - Record financial matters for businesses.
• Accountants - Manage, update, analyze and report financial information.
• Financial advisors - Provide expert advice on personal finances and investments.
• Recruiters - Handle the hiring process for businesses.
• Marketing advisors - Provide expert advice on promoting and selling products.
• ICT specialists - Develop and maintain technology systems for data storage and retrieval.
• Legal advisors - Provide legal advice to businesses.
• External professionals - Highly skilled individuals hired by businesses for expertise.

Bank Accounts

• Businesses should have separate bank accounts for their transactions.
• This makes expenses and income more manageable.
• Businesses should consider factors like interest rates, bank fees, overdraft, and customer service.

Financial Control Systems

• Used to monitor business finances.
• Helps businesses make informed decisions and prevent risks.
• Methods include budgeting (predicting financials) and cash flow management (ensuring enough cash).

Financial Performance and Reporting

• Businesses use financial reports (income statements, balance sheets) to track profit and loss and overall financial position.

Financial Planning and Reporting

• Financial reports are a way to summarize expenses and income
• They include the income statement, balance sheet and cash flow statements.

Auditing

• Testing and evaluating accounting processes and internal controls.
• Internal or external auditing can prevent fraud and financial mismanagement.

Cash Flow Management

• Ensuring enough cash to cover expenses and debts on time.
• Tracking outstanding debts and paying them promptly.

Inventory Control

• Keeping stock costs to a minimum through barcoding and stocktaking.

Record Keeping

• Maintaining financial documents (invoices, receipts, bank statements) for at least 5 years.
• Ensuring compliance with tax regulations.
• Original documents (source documents) summarized into journals.

Cash Book

• A record of cash receipts and payments.

Income Statements

• Summarize income and expenses to calculate profit or loss.
• Indicate whether the business' revenue is enough to cover expenses and make a profit.

Balance Sheets

• Snapshot of a business' assets, liabilities, and owner's equity.
• Used to evaluate the financial position of a business.

Supplier Selection

• Criteria for selecting suppliers include price, quality, reliability, proximity, corporate social responsibility, ethical staff treatment, and environmental practices.

Policies and Procedures

• Policies are broad guidelines followed by employees.
• Procedures are the actions that put policies into practice.
• This helps ensure consistency in handling issues (complaints, budgets).

Customer Database

• A collection of customer information, used for communication, better service, and loyalty building.
• Businesses gain insights into customer behaviour and preferences.

Overseas Suppliers

• Individuals or businesses selling raw materials or resources in other countries.
• Benefits - lower labour costs, cheaper resources.
• Disadvantages - public perception issues, time delays in delivery, compliance delays

Overseas Retailers

• Businesses selling goods or services directly to overseas customers.

Marketing Plan

• A plan for maximizing sales and profits, including planning, pricing, promoting, and distributing products.
• Customer profiling to understand customers' needs and preferences is done through market research and creating customer profiles.
• Marketing objectives (increasing sales, market share, business size) are determined.

Expanding Product Range

• Offering a range of products to cater to customers' diverse needs.

Establishing Objectives and Performance Indicators

• Businesses set goals and use measurements (sales analysis, market share analysis, marketing profitability analysis) to monitor progress.

Internal and External Environments

• Internal (staff, culture, policies) and external environment (customers, competitors, suppliers) influences to consider.

Market Segmentation

• Dividing a total market into groups sharing common characteristics (demographics, geography, psychographics, behavior).

Target Market

• The specific group a business aims to serve (primary/secondary/niche).

Product Life Cycle

• The stages a product goes through during its existence (Introduction, Growth, Maturity, Decline).

7Ps of Marketing

• Product, Price, Place, Promotion, People, Process, and Physical Evidence - Tools and approaches used to connect with customers and create a desirable product.

Pricing Strategies

• Various strategies to set prices, including recommended retail price (RRP), percentage markup, competitor pricing, market-driven pricing, or using quotes from service businesses.

Place (Distribution Channels)

• Channels through which customers access products. Retailers, wholesalers, or a direct-to-customer approach are options.

Promotion

• Communicating with customers to attract them. Including advertisements, promotions, and publicity.

People

• Staff, managers, and owners - they maintain and improve business reputation.

Physical Evidence

• The environment where customer interaction takes place. Businesses should have a welcoming environment. e.g. the shop-front look.

Process

• Customer interaction including wait times, payment methods and online ordering.

Legal Obligations

• Requirements (laws) that ensure neither staff nor customers are at risk in the workplace.
• Protecting staff and customers from potential risks, and ensuring fair practices.

Employee Induction

• Essential to introduce new employees to the business culture, history, policies, objectives, and relevant procedures.

Corporate Social Responsibility

• Emphasizing considerations like ethical sourcing, diversity in hiring practices, fair pay, safe working conditions, and reducing environmental impact.

Employe Expectations

• Expectations from employee to employer on how an individual would be treated during their employment.
• Business expectations include loyalty, respect, compliance.

Employer Expectations

• Expectations regarding employee behavior, work performance, and adherence to company policies.

Employee Induction

• Employee induction involves introducing new hires to the business, company culture, safety procedures, and their job roles.

National Employment Standards

• Minimum entitlements that employers must provide to their staff, as required by law.

Legal Obligations for Staffing

• Legal obligations regarding workplace safety, discrimination, no harassment, and gender equality are required by workplace laws.