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Questions and Answers
What is the role of an accountant when establishing a business?
What is the role of an accountant when establishing a business?
An accountant manages, updates, analyses, and reports a business's financial information.
What services does a financial adviser provide to business owners?
What services does a financial adviser provide to business owners?
A financial adviser provides expert advice in relation to monetary matters and helps create a financial plan to increase profits.
What is the primary role of an ICT specialist in a business?
What is the primary role of an ICT specialist in a business?
An ICT specialist develops and maintains technological systems for businesses.
How does a legal adviser assist a business?
How does a legal adviser assist a business?
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What are the key legal requirements for registering a business name in Australia?
What are the key legal requirements for registering a business name in Australia?
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What is a website domain?
What is a website domain?
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What does trade practices legislation govern?
What does trade practices legislation govern?
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What is the importance of financial control systems?
What is the importance of financial control systems?
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Why is establishing a customer database important?
Why is establishing a customer database important?
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Which of the following is NOT a professional role that may assist when establishing a business?
Which of the following is NOT a professional role that may assist when establishing a business?
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Study Notes
Role of External Professionals in Business Establishment
- Accountants: Manage, update, analyze, and report financial information, helping owners create and maintain clear financial statements.
- Financial Advisers: Provide expert monetary advice, assisting in personal and business financial planning to maximize profits and protect wealth.
- ICT Specialists: Develop and maintain technological systems to store data, create websites for online transactions, and establish customer databases.
- Legal Advisers: Offer guidance on legal responsibilities, ensuring compliance with complex and evolving business laws.
- Marketing Advisers: Conduct market research to understand target markets, helping in promoting and selling products effectively.
Key Legal Requirements for Establishing a Business
- Business Name Registration: Legal obligation to register a business name with ASIC, except when operating under the owner's name.
- Website Domain Registration: Necessary for online operations, requiring checks for existing trademarks and registration through auDA.
- Trade Practices Legislation: Governs business interactions with customers and competitors, ensuring fairness and compliance, enforced by ACCC under CCA 2010.
- Business Tax Compliance: Legal requirement to pay taxes, with obligations varying by business type and earnings; the ATO oversees compliance.
- Work Safe Insurance: Compulsory insurance ensuring financial support for employees injured at work, promoting a safe working environment.
Importance of Financial Management Systems
- Bank Accounts: Separate accounts are required for businesses (especially incorporated ones) to manage finances independently from personal accounts.
- Financial Control Systems: Processes to monitor financial transactions, preventing fraud and errors; budgeting and auditing are common practices.
- Record-Keeping Strategies: Methods to track transactions, fulfilling ATO requirements to archive records for a minimum of five years, avoiding legal issues.
Supplier Selection and Corporate Social Responsibility
- Pricing: Suppliers' costs affect production expenses; low prices can enhance competitiveness while maintaining acceptable quality.
- Quality: The quality of supplies directly impacts customer satisfaction and a business's reputation; high standards are essential for repeat purchases.
- Location: Proximity of suppliers influences transportation costs; local suppliers might be chosen for environmental responsibility and community support.
- Socially Responsible Suppliers: Businesses should assess suppliers' sustainability and ethical practices, as these choices can affect reputation and compliance with CSR objectives.
Policies and Procedures for Compliance
- Policies: Written statements guiding employee behavior to meet legal standards and establish workplace routines aligned with business goals.
- Procedures: Step-by-step instructions for employees, ensuring predictable actions and legal compliance; regular reviews maintain relevancy with legislation changes.
Technological and Global Considerations
- Customer Databases: Collections of customer information used for tracking purchasing behavior and tailoring marketing efforts; crucial for customer relationship management.
- Overseas Suppliers: Sourcing materials internationally can reduce costs and access higher quality resources, facilitated by globalization.
- Overseas Retailers: Establishing contacts to sell products abroad enhances competitive advantage while expanding market reach in international markets.
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Description
This quiz covers the essential legal requirements and financial considerations for establishing a business. It includes an overview of key elements such as business name registration, tax compliance, and the role of external professionals. Test your understanding of these crucial topics to ensure a solid foundation for your business establishment.
