Business management Unit 2 SAC1

Legal requirements when starting a business

Registering a business name

Registering awebsite domain

ACL (Australian consumer law)

Business tax compliance

Worksafe insurance

Australian consumer law (ACL)

promotes competition and protects consumers.

ACL - False and misleading advertisement

Seller must not make false representations to a customer such as lying or exaggerating the quality of the product.

e.g Heinz case study

Business tax compliance

Businesses must pay tax on income, collect income tax from employees and collect GST from sales.

Insurance

A contract in which an individual or organisation recieves financial protection against accidental losses from an insurance company.

2 types of compulsory insurance

Work cover: insurance for employees

Public liability: protects the business against damages to another person or property. (customer falls over cable at your shop)

External professionals

Legal advice from law of institute

Financial professionals

Other professional advisors

Legal advice from law of institute, Offers:

Legal referal service: (business specific needs are met with lawyer)

Discuss/manage issue, advise likely cost of action

Financial professional, Assist in:

monitor cash flow, maintain records, provide advice. e.g. accountant

Other professional advisors

Graphic designers: produce logos, etc.

Ad consultants: develop ads, etc

Financial management

Managing financial activities relating to the operation of a business

financial management strategies:

establish a business bank account

financial control systems

record keeping

financial control systems and record keeping can help:

manage cash flow, make sensible spending decisions and protect business from bankruptcy, etc

Cash flow

money coming in from revenue and out for expense

cashpayments

items are purchased and paid in cash

Choosing socially responsible suppliers

\+ one policy david jones implements for ethical sourcing

__High quality products:__ reduce defects and returns

__Reliable and deliver on time:__ maintain inventory levels

David Jones protects the welfare of animals

Strategies to maintain positive supplier relationships:

settle bils on time, frequent communication, etc.

Environmentally sustainable input strategies

buy green energy options, employee treatment (not child labour)

Policy

A written statement of the procedures and rules that should be followed in a given situation

Why are policies neccessary for a business

helps day to day operations run smoothly

comply with legal regulations

Business policies(CHEF-CPR) -refer to Nike case study)

Code of conduct

Health and safety

Emergency management

Financial management

Customer service

Procurement

Recruitment

Code of conduct policy

rules. e.g. dress code

Health and safety policy

protect employees. e.g. safety and training

OH&S, worksite inspections

Emergency management procedure policy

emergency evacuations

Financial management policy

should include: new accounts, new suppliers, insurance, etc

Customer service policy

guides employees and have policies regarding guarantees/warrentees

Procurement policy

supports planning to ensure value for money, quality goods and reliable customer service from supplier.

Includes: budget limits and purchasing authority,

Recruitment policy

process of hiring employees e.g. check references

Discrimination

treating someone unfavourably because of a personal characteristic protected by law

Areas covered by equal opportunity act

Unfairly dismissed (become pregnant)

unfair employment (race/religion)

why should a business develop and maintain a customer base?

make more informed selling decisions, improvements.

What are the benefits of a business expanding into glabal markets?

create a new global customer base, competitive advantage

Record keeping

maintaining accurate records of all related business activity matters