Unit 2 AOS 1: Legal and Financial Considerations

Flashcards covering external professionals, legal requirements, financial controls, supplier management, and global business issues.

External Professional

Highly skilled individuals the businesses hire to provide expertise in a particular area of operation to improve efficiency and achieve goals.

Accountants

A professional who manages, updates, analyses, and reports a business's financial information, including creating financial reports and ensuring legal compliance.

Financial Advisors

A professional who provides expert advice to individuals and businesses in relation to monetary matters, personal finances, and potential investments.

ICT Specialists

Information and Communications Technology professionals who develop and maintain the technological systems used by businesses to store and retrieve data.

Legal Advisors

A professional who provides expert advice to a business regarding their legal responsibilities, including drafting contracts and protecting intellectual property.

Marketing Advisors

A professional who provides expert advice to businesses in relation to promoting and selling their products through branding and advertising strategies.

Business Name

The title that a business operates under and what customers use to identify the business.

Website Domain

The internet address of a business that identifies its online site.

auDA (au Domain Administration)

The organization in Australia where businesses register their domain name if it is available.

Trade Practise Legislation

The law that governs how a business interacts with customers and competitors to ensure fair and ethical operation within an industry.

Competition and Consumer Act 2010 (CCA)

The legislation that sets the rules for business conduct in Australia.

Australian Competition and Consumer Commission (ACCC)

The government body that enforces the Competition and Consumer Act 2010 and investigates breaches.

Tax Compliance

The extent to which an individual or business meets its tax obligations imposed by Federal and State governments.

Australian Taxation Office (ATO)

The government agency that regulates tax and to which all businesses must pay tax.

GST Obligations

The requirement for a business to collect a goods and service tax for the ATO if the business earns over $75,000$.

Work Safe Insurance

Compulsory insurance that assists employers in financially compensating and supporting employees who become injured or ill because of their work.

Occupational Health and Safety Act 2004 (Vic)

The legislative framework that businesses must follow to maintain a safe working environment in Victoria.

WorkSafe Victoria

A government agency set up to oversee the implementation of Victoria's OHS laws.

WorkCover Insurance

Compulsory insurance for all businesses in Victoria, specifically mandatory for those that pay more than $7,500$ in wages per year.

Financial Control Systems

Procedures created to monitor and manage a business's finances, such as budgets, cash books, and approval processes.

Recordkeeping Strategies

Systems developed to accurately record and store financial documents including receipts, invoices, and payroll records for legal compliance and auditing.

Budgeting

The process of planning and estimating a business's future income and expenses over a specific period.

Auditing

The examination and checking of a business's financial records to ensure they are accurate, reliable, and legally compliant.

Cash Books

Financial records that document all money received (cash inflows) and all money paid out (cash outflows) by a business.

Suppliers

A separate organization, business, or person that provides the inputs (goods and services) a business needs to create its final output.

Procurement

The acts of sourcing the most appropriate supplier, negotiating terms, tracking deliveries, and maintaining records.

Policy

A formal set of guidelines on a topic that must be followed by all employees, such as OHS or anti-bullying guidelines.

Procedure

Step-by-step instructions that help employees follow and comply with a business's policies.

Global Issues

Matters taking place overseas that could potentially impact business operations in Australia.

Customer Database

An organized collection of information about current and potential customers, including purchase history and buying habits.

Overseas Suppliers

Individuals or businesses that sell raw materials from a country outside of the business's home country.

Free Trade

The ability to buy and sell goods or services internationally with minimal government restrictions or rules.

Overseas Retailers

Businesses that sell goods and services directly to customers in other countries.