Business Management U2 AOS1

Corporate Social Responsibility (CSR)

the notion that corporations are expected to go above and beyond following the law and making a profit

Worksafe Victoria

a government agency that aims to reduce workplace injuries and support injured workers

Codes Of Practice

sets of guidelines established by external bodies to regulate the standards of behaviour and conduct within an industry

ACCC

Australian Competition and Consumer Commission

policies and procedures

Information such as guidelines for practice and hospital regulations found online or in a manual.

Bookkeeping

the recording of business transactions

Auditing

the job of reviewing and evaluating the information used to prepare a company's financial statements

Suppliers

companies that provide material, human, financial, and informational resources to other companies

Customers

The purchasers of organizations' products; the focal point of all marketing activities

Competitors

companies in the same industry that sell similar products or services to customers

ASIC

Australian securities and investments commission

ACN

Australian Company Number

Domain name

business’ website address

Australian Domain Administration

Where a business can register a domain name, which generally costs between $10 - $100 per year.

Taxation

A means by which the government finances its expenditure by collecting money from individuals and businesses.

Federal Income tax

levied on the taxable income of an individual or a business. Companies pay a flat rate of 30% for larger businesses and 25% for businesses with a turn over of less than $50 million. Individuals pay a progressive tax rate

progressive tax rate

the more you earn the more you pay

Major federal taxes that apply to businesses

• Pay as you go (PAYG) withholding

• Goods and services tax (GST)

• Fringe Benefits Tax (FBT)

Pay as you go (PAYG) withholding

imposed on the employee - Tax that is taken directly from an employee’s salary or wage

Goods and Services tax (GST)

Broad-based tax of 10% on the supply of most goods and services consumed in Australia. Imposed on all consumers. Businesses are only required to register for GST if they earn $75000 or more in a financial year

Fringe Benefits tax (FBT)

Tax on the provision of a benefit to an employee - such as a car for private use, or a low-interest loan - in place of a wage or salary. Imposed on the employer.

State taxes that apply to businesses

• Stamp Duty

• Land tax

Stamp duty

Placed on documents that give evidence to transactions, such as the purchase of property. Imposed on the individual or business.

Land tax

Annually levied on the owner of the land

Business Activity Statement (BAS)

A form submitted to the ATO to report a business’ taxation obligations. It is lodged periodically.

Zoning

categorization of land for particular purposes, such as residential, industrial, etc.

Occupational Health and Safety Act (2004, VIC)

the principle legislation covering OH&S

The competition and consumer act 2010 (cwlth) a.k.a CCA

a federal law specifying acceptable business behaviour in relation to a wide range of issues - product safety, pricing, competing, etc. Administered by the ACCC.

ACCC

Australian competition and consumer commission

Rights guaranteed by Australian consumer law

• Consumer gains clear legal title to goods

• goods must correspond to any sample, demonstration model or description

• goods must be of acceptable quality (safe, durable, etc.)

• Products must be fit for a particular purpose

• Repairs and spare parts are reasonably available

• Services are completed within a reasonable time and carried out with care and skill

local government legal requirements

• zoning regulations

• health and service regulations

• health inspections regularly and often without warning

External professionals

people that come in after a business idea is established, and help set it up

types of external professionals

• Accountants

• Financial advisors

• ICT advisors

• Legal advisors

• Marketing advisors

Accountants

help complete financial paperwork, such as income statements and balance sheets. They also determine tax paperwork.

Financial advisor

Helps you reach your financial goals, outlining strategies and timelines to help achieve profitability. They help determine investments.

ICT advisors

set up technology and assist in troubleshooting. they can also train staff on how to use systems.

Legal advisor

a lawyer who works internally for a business, giving them advice on legal matters. The law institute of vic offers free initial interviews with lawyers.

Marketing advisor

someone who specializes in analyzing the marketing strategies a business is using and improving them.

Separate entity principle

separating business and personal finances and transactions

Factors that go into choosing a bank account

• Bank fees

• Interest rates

• Overdraft facility

• Credit cards

• Convenience and support

Financial control systems

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

types of financial control systems

• Budgeting

• Cash-flow management

• Control of accounts receivable

• Inventory control

• Auditing

Budgeting

estimating a business’ financial performance for a given period in the future

Accounts receivable

refers to the outstanding invoices or payments that a business has, owes or is owed.

Auditing

the process of testing and evaluating a business’ accounting processes and internal controls. It can be done internally or externally (ATO)

Supplier

an organisation who provides your business with various goods and services that you need in order to operate.

Price (of a supplier)

Likely the most important factor in determining a business’ supplying decision. Lowest cost could be achieved by sourcing goods overseas, yet low cost could mean lower quality.

Transport costs

a factor to consider when choosing a supplier that is any distance from your business

exchange rates

a factor to consider when choosing an overseas supplier

procurement

the act of sourcing the most appropriate supplier, negotiating terms and conditions, tracking when supplies are received and maintaining records

quality and cost

must be balanced when choosing a supplier for optimum supplies.

what factors influence supplier procurement?

price, quality, reliability, location and CSR

Fair trade

an arrangement designed to help producers in developing countries achieve sustainable and equitable trade relationships.

Policies

written statements that outline the expected performance and behaviour of employees.

Steps to developing a policy

• Investigate which laws apply to a business

• Assess business goals

• Create the policy

• Review the policy

• Present the policy to employees

• Update the policy as required

Types of legislation that influence policies

OH&S act influences emergency policy and OH&S policy. Competition and consumer act influences guarantees, warranty and refund/return policy. Equal opportunity act influences workplace bullying and harassment policies, and inclusion and diversity policy. Privacy and data protection act influences the privacy policy.

Procedures

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

Steps to developing a procedure

• Assess all relevant policies and legislation

• Create appropriate procedures

• Present the procedures to employees and implement them

• Review procedures and amend when needed

Policies that influence procedures

Customer service policy influences a method for dealing with customer complaints. Social media policy influences a method for dealing with incorrect social media use by employees. Dress code influences a method for dealing with employees in incorrect uniforms. Absence and time off policy influences a method for dealing with unscheduled employee absences or time off.

decisions with storing customer data

storing sensitive data securely, accessing customer data, buying customer data from other companies, or generating your own customer data base.

overseas suppliers

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

overseas retailers

individuals or businesses that sell goods and services directly to customers overseas.

Work cover insurance

aims to provide financial protection and support to workers who are injured or become ill due to work-related reasons. It helps cover medical expenses, rehabilitation costs, and lost wages, ensuring workers are supported during times of need while also promoting workplace safety.