Bus Man Unit 2 Sac 1

Why is it important for a business to register a website domain name

To prohibit anyone from operating under a similar name and to protect consumers by allowing them to identify the owner

Define Bank Account

An arrangement made with a bank where a business or individual can deposit or withdraw money

Identify 2 reasons for having a Bank account

1. The ‘seperate identity’ accounting principle

2. Easier to monitor business financial performance

List 5 Key considerations when choosing a bank account

1. Interest Rates

2. Bank fees

3. Overdraft facility

4. Credit cards

5. Convenience and support

Define Financial control systems

The process that allows a business to accurately monitor, manage and report its financial performance

eg; Using passwords

What is the importance of establishing Financial Control Systems

Can help businesses avoid:

• Large financial losses

• Fraud

• Financial Mismanagement

• Low cash flow

List 4 record keeping stratergies

1. Use a registered tax agent

2. Obtain or make copies of all transactions, invoices etc

3. Keep records simple but accurate

4. Establish a good filing system

Define Budgeting

Budgeting is estimating a business's future income and expenses to make sure it stays financially healthy.

Define Auditing

Auditing is assessing a business’s financial information to verify that it is true and accurate

Identify the 5 considerations when choosing suppliers

1. Price

2. Quality

3. Reliability

4. Proximity

5. CSR

Define the term Policy

A written set of broad guidelines to be followed by all employees. It’s the ‘rules’.

Why is it important for a business to have clearly defined policies

To ensure all conditions and actions are consistent, guide employees, establish a culture and promote safety and work within the law.

Define the term Procedures

A series of actions that enable a policy to be enforced

Explain the purpose of procedures in the workplace

To ensure consistency, safety and compliance across all operations

Define social media advertising

A form of online advertising that uses social media channels to deliver targeted commercial messages to potential customers.

List the advantages and disadvantages of social media advertising

Advantages:

• Inexpensive

• Easy to use

• Effective in gaining exposure

Disadvantages:

• Less control over what customers can write

• Difficult to monitor reach and frequency

Define Customer Databases

A bank of information on existing and potential customers, including their personal details, previous interactions, buying habits and preferences

Define Overseas Suppliers

Individuals or businesses that sell raw materials or resources in a country overseas

What issues should be considered when using overseas suppliers

• Legal and government restrictions on trade

• CSR of suppliers

• Types of inputs offered

• Language barriers

Factors to consider when choosing suppliers:

• Price

• Quality

• Reliability

• Proximity

• CSR

Define Overseas Retailers

Individuals or businesses that sell goods and services directly to customers from overseas

What issues should be considered when using overseas retailers

• Legal and government regulations on trade

• CSR of retailers

• Meeting retailers expectations

• Exchange rates

What is the role of an accountant?

Prepare financial statements, monitor banking activities and provide general business advice.

What is the role of a bookkeeper?

Maintain the business's daily financial records.

What is the role of a financial advisor

Their job is to help you outline strategies and timelines to help achieve profitability.

What is the role of ICT advisors

They help set up the business technology such as intranets, phone systems and soft ware to help run the business.

What is the role of a legal advisor

A lawyer who works internally for a business, giving them advice on legal matters.

What is the role of a market advisor

Someone who specialises in analysing the market and comes up with new strategies to penetrate that market.

What are some key legal requirements

• Registering a business name

• Taxes that need to be paid

• Safety laws (OH&S)

What are Global issues in business

Threats happening around the world that may affect your business or other businesses.

Cybersecurity threats, economic instability, climate change, political tensions, supply chain disruptions and rapid technological disruption.