VCE Business Management Unit 2 AOS 1 (Grade A)

Summary:

This text covers various aspects of legal requirements and financial control systems for businesses. It highlights the importance of registering a business name with the Australian Securities and Investments Commission (ASIC) and choosing a unique domain name for the website. Taxation regulations, work health and safety regulations, and WorkSafe insurance are discussed as key legal requirements. Local government legal requirements, such as zoning regulations and compliance with health services regulations, are also mentioned.

Establishing separate bank accounts is recommended for monitoring financial performance, calculating expenses and revenue, and simplifying tax preparation. Financial control systems, including budgeting, cash-flow management, control of accounts receivable, inventory control, and auditing, are essential for managing and monitoring a business’s financial performance. Recordkeeping strategies, including keeping records of financial transactions for tax purposes and maintaining source documents, cash books, income statements, and balance sheets, are highlighted.

Choosing suppliers based on factors such as price, quality, reliability, proximity, and corporate social responsibility is discussed. Policies and procedures are important for setting guidelines and standards of behaviour within the business, with policies providing broad guidelines and procedures outlining step-by-step instructions for implementing policies and resolving disputes.

Excerpt:

VCE Business Management Unit 2 AOS 1

Unit 2 AOS 1 SAC Study – Legal Requirements

Business name registration

• Australian Securities and Investments Commission (ASIC)
• Businesses need to register their business name, except when the name is that of the owner
• If something is added to a personal name, such as ‘Pty Ltd’, ‘Motors’, ‘and Associates’ or ‘and Co’, then the business name must be registered

Registering a domain name

• A domain name, is the address of a business’s website on the internet
• It is important that the business chooses a unique domain name that represents its activities

Taxation regulations

• Tax can be imposed on; income, capital gains and the provision of goods and services
• The Australian Taxation Office (ATO) is the government body in charge
• Federal income tax is levied on the taxable income of an individual or a business