Business Management Unit 2 AOS 1

A domain name

the address of a website on the internet

Legal compliance

the process where a business ensures that it observes all aspects of external laws and regulations

A procedure

a series of actions that enable a policy to be put into practice

Financial control systems

the systems and processes used to help the business monitor, manage and report its financial performance

Auditing

the process of testing and evaluating a business's accounting processes and internal controls

Source document

document that provides evidence of transactions

Cash flow

the total amount of money being transferred into and out of a business

Cash book

sets out all cash transactions of a business including receipts and payments

Balance sheet

an accounting report that sets out the assets, liabilities and owners equity of a business as at a given date

Petty cash

a small amount of cash held to pay for items such as stamps, tea and coffee

A receipt

a record of cash transitions and money received by a business

Corporate Social Responsibility

The commitment by organisations to conduct their business in an ethical manner, to take responsibility for the economic, social and environmental

Suppliers

provide the resources required for the production process

A customer database

a bank of information on existing and potential customers, including such details as the name, date of birth, address, previous interactions, buying habits and preferences.

financial management

managing financial activities relating to the operation of a business

an effective business name should be

memorable, easy to pronounce and spell, original and professional

Australian Consumer Law

promotes competition, fair trading, protects consumers and prevents anti-competitive conduct

Refund, repair, replacement (good)

acceptable quality, match demonstration, have spare parts, be safe to use and be durable

Refund, repair, replacement (service)

performed with care and skill, fit for intended purpose, completed in a reasonable time

major or minor problems with a good/service

minor problem with a product the business can choose to give you a free repair instead of a replacement or refund.

major problem with a product, you have the right to ask for your choice of a replacement or refund.

major problem with a service, receive compensation for the drop in value below the price paid, or a refund.

insurance

a contract where a business receives reimbursement against losses

Work Cover

Victorian orgnisation which administers, implements and enforces legislation covering ohs, workers' compensation, and dangerous substances. provide insurance cover of the costs of benefits if employees become ill or injured because of work

Public liability insurance

to protect the business against damages or injuries to another person or property

a reliable supplier will bring

quality, timeliness, competitiveness, innovation and finance

strategies to maintain positive supplier relationships

settle bills on time, allow adequate time for orders and maintain frequent communication

factors to consider when selecting socially responsible suppliers

price (lowers cop, increases revenue)

quality (higher quality goods, increases competitiveness)

reliability (reduce likelihood of production delays)

social responsibility (considering these factors can lead to a positive business reputation)

businesses should consider

environmental practices, commitment to environmental practices, if suppliers have reduced CO2, treatment of employees by supplier and how the supplier supports its local community

internal control procedure completeness

all reports of business contain records and transactions

internal control procedure accuracy

the appropriate amounts are recorded in the appropriate accounts

internal control procedure authorisation

the correct levels of authorisation are in place to cover approval, payments, data entry and computer access

internal control procedure validity

the invoice is for work performed or products received and the business has incurred the liability properly

internal control procedure existence

of assets and liabilities; that these have been recorded accurately and in a timely manner

internal control procedure error handling

that errors in the system have been identified and processed

internal control procedure segregation of duties

Different individuals should be responsible for related activities.

eg. the auditor should not be responsible for paying wages

internal control procedure presentation and disclosure

timely preparation of standard financial reports.

transaction

A business activity that changes assets, liabilities, or owner's equity

environmental sustainable input strategies

- purchase of use of green energy options

- purchase of sustainable technology and equipment options

- reduce CO2 emissions and improve the business's image.

- purchase of the most sustainable input options; for example, recyclable materials

- choosing local suppliers to reduce carbon footprint and transport costs

- choosing suppliers based on principles of corporate social responsibility

advantages of socially responsible suppliers

-usually offer reduced costs due to energy efficiencies eg. lower transport costs

-Improved business reputation among investors

-The positive publicity increases business competitiveness levels.

disadvantages of socially responsible suppliers

-increased costs involved in sourcing ethical and socially responsible suppliers

- potential for reductions in quality of products.

policy

a written statement of the processes and procedures, rules and regulations that should be followed in a given situation

policies are necessary for a business because:

Ensure consistency and stability in day-to-day operations

Comply with legal regulations

Maintain financial record keeping and manage their finances.

Elements of a health and safety system:

Ongoing work site inspections,

Accident and incident investigation, Hazard identification assessment, Worker training

Discrimination

treating someone unfavorably because of a personal characteristic protected by law.

discrimination and businesses

Victoria's Equal Opportunity Act 2010 protects people from discrimination and harassment.

Areas covered by the Equal Opportunity Act

Recruitment process, Unfair terms of employment, Denied access to training,

Refused/limited access to opportunities for promotion or other employment benefits,

Unfairly dismissed, retrenched or demoted

costs and benefits of working with suppliers overseas

political instability, shipping costs, unethical sourcing of materials, cheaper inputs, higher production capacity,