Business Management Unit 2 AOS 1

4A - define external professionals

External professionals are highly-skilled individuals that businesses hire to provide expertise in a particular area of operation.

4A - list external professionals

• accountant

• financial advisor

• ICT specialist

• legal adviser

• marketing adviser

4A - define accountant

An accountant is a professional who manages, updates, analyses, and reports a business’s financial information

4A - roles of accountants

• Create financial reports

• Ensure legal compliance

• Create budgeted reports

4A - define financial adviser

a financial adviser is a professional who provides expert advice to individuals and businesses in relation to monetary matters, personal finances, and potential investments.

4A - roles of financial advisers

• Manage the business owners personal finances

• Analyse the feasibility of a businesses financial goals and recommend other possible investment opportunities

• Analyse and assist in the management of current business expenses

4A - define ICT specialist

An information and communications technology (ICT) specialist is a professional who develops and maintains the technological systems that are used by businesses to store and retrieve data

4A - roles of ICT specialists

• Set up and maintain a website and customer database

• Ensure legal compliance related to data management

• Provide training to employees regarding privacy issues and establish security policies

4A - legal advisers

a legal adviser is a professional who provides expert advice to businesses regarding their legal responsibilities

4A - roles of legal advisers

• Provide advice relating to the drafting of contracts

• Ensure compliance with all relevant laws and regulations

• Protect a business’s trademarks and patents

• Provide in house counsel for conflicts that arise between stakeholders, such as employees and management

4A - define marketing adviser

a marketing adviser is a professional who provides expert advice to businesses in relation to promoting and selling their products

4A - roles of marketing advisers

• Develop appropriate advertising strategies

• Provide branding and design assistance

• Develop digital and social media marketing strategies

• Develop effective public relations strategies

4B - list the legal requirements for starting a business

• Registering a business name

• Registering a website domain

• Trade practices legislation

• Business tax compliance

• Work safe insurance

4B - define a business name

a business name is the title that a business operates under and what customers use to identify the business

4B - define a website domain

a website domain is a website address that identifies a business’s online site

4B - define trade practices legislation

trade practices legislation is the law that governs how a business interacts with customers and competitors

4B - define business tax compliance

tax compliance is the extent to which an individual or business meets tax obligations

4B - define work safe insurance

work safe insurance is compulsory insurance that assist employers to meet their obligation of financially compensating and supporting employees who become injured or ill because of their work

4C - define bank account

a bank account is an arrangement made with a bank where a business or individual can deposit and withdraw money

4C - importance of establishing a bank account

• Enables a business to seperate business and personal spending

• Enables a business to properly calculate its bank balance and understand its financial position

• Enables a business to accurately lodge its tax returns

4C - define financial control systems

financial control systems are processes and procedures used to direct and monitor a business’s finances

4C - importance of financial control systems

financial control systems can help a business avoid:

• Large financial losses

• Fraud

• Financial mismanagement

• Low cash flow

4D - what are the factors to consider when choosing a supplier

• price

• quality

• reliability

• location

• social responsibility

4D - define CSR

Corporate social responsibility is the ethical conduct of a business beyond legal obligations, and the consideration of social, economic, and environmental impacts when making business decisions

4D - advantages of choosing CSR suppliers

• A business’s reputation can be improved when working with socially responsible suppliers, therefore improving it’s competitiveness

• Employees may be more motivated to work at a socially responsible business and contribute to achieving objectives

• A business can earn more revenue as customers are likely to have a better perception of a business that is socially responsible

4D - disadvantages of choosing CSR suppliers

• businesses may have less choice of suppliers when deciding on suppliers that meet their CSR objectives

• socially responsible suppliers may not offer certain inputs needed for production

• it may be time consuming to find ethical suppliers or communicate expectations to suppliers

• inputs may be more costly from ethical suppliers due to increased wage costs compared to cheaper, less ethical suppliers

4E - define policies

policies are written statements that outline the expected performance and behaviour of employees

4E - define procedures

procedures are a series of actions that employees must follow in order to abide by the business’s policies

4E - how are policies and procedures related?

procedures are often based on policies, and can cover things like an emergency policy, and a customer refund policy

4F - define customer databases

a customer database is a collection of information about existing and potential customers

4F - issues impacting customer databases

• legal and government restrictions on trade

• meeting retailer expectations

• CSR of retailers