VCE Business Management Unit 2 AOS 1 Revision (Grade A)

Summary:

Unit 2 AOS 1 SAC Study focuses on legal requirements, establishing bank accounts, financial control systems, record-keeping strategies, and choosing suppliers. Legal requirements include registering a business name with ASIC, registering a domain name for the business’s website, complying with taxation regulations, and adhering to work health and safety regulations governed by organizations such as WorkSafe Victoria. Local government legal requirements, such as zoning regulations and health services regulations, must also be considered.

Establishing bank accounts is recommended to monitor financial performance and facilitate tax preparation. Choosing the right bank account involves considering factors like hidden fees, interest rates, loan repayments, and available features. Financial control systems, including budgeting, cash-flow management, control of accounts receivable, inventory control, and auditing, help monitor and manage the business’s financial performance. Record-keeping strategies are essential for tax purposes and involve maintaining documents like tax invoices, receipts, bank statements, and employee contracts.

Source documents are crucial in recording transactions and providing data for financial reports. Cash books help monitor cash flow, income statements measure profitability, and balance sheets provide a snapshot of the business’s financial stability. Choosing suppliers involves considering factors like price, quality, reliability, proximity, and corporate social responsibility.

Policies and procedures are established to guide employees’ behaviour and ensure compliance with legal requirements. Policies set broad guidelines, while procedures provide step-by-step instructions for implementing policies and resolving disputes. These policies and procedures help maintain consistency, align actions with business values and objectives, and facilitate effective decision-making.

In summary, Unit 2 AOS 1 SAC Study covers various aspects of legal requirements, financial management, record-keeping, supplier selection, and the importance of policies and procedures in ensuring compliance and guiding business operations.

Excerpt:

VCE Business Management Unit 2 AOS 1 Revision

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