Business Management Unit 2 Review

A business which makes very little income and one that makes a large amount of income would pay the same amount of income tax.

• True

• False

Suzie wants to open her new floral business and has decided on the name ‘Flowers by Suzie’ which has already been used. Is she able to register this business name?

• Yes

• No

• Yes, as long as it is not trademarked.

• No because it is her name.

The ACCC can enforce trade practices legislation when customers complain of product safety or business practices.

• Only when a customer complains of product safety

• When a business fails to follow any relevant legal requirements.

• When a business is following relevant legislation.

You are the owner of Curls, a hair salon specialising in curly hair. What is one way Curls can prevent large financial losses and decrease the risk of fraud?

• Record-keeping strategies

• Financial control systems

• Employing trustworthy employees

Rachel and Amanda own Solino, a streetwear brand based in Sydney. Currently the business’s finances are tracked through Amanda’s bank account. Rachel and Amanda believe it would be best to create a separate account specifically for the business.

Identify which of the following best describes the situation at Solino.

• The business is tracking finances from Amanda’s account

• The business is losing money

• The business is tracking finances from a separate account

Rachel and Amanda own Solino, a streetwear brand based in Sydney. Currently the business’s finances are tracked through Amanda’s bank account. Rachel and Amanda believe it would be best to create a separate account specifically for the business.

Identify what a separate bank account will enable Rachel and Amanda to do.

• Prove money transactions.

• Categorise Solino’s financial transactions

• Separate Solino’s and Amanda’s spending

A bakery that aims to reduce its production costs needs flour and oil to produce its cakes but its supplier charges a high price for oil. What can this business do to decrease production costs?

• Try to bargain with the supplier.

• Choose another supplier that sells oil for a lower price.

• Accept the high price

A business’s market share cannot be affected by the unethical activities of its suppliers.

• True

• False

Precision is a new recycling business with a factory in Victoria owned by Linda. The business is planning to hire over 100 employees in the following month. Linda understands that Precision needs to communicate expectations to employees as the business could face legal consequences if employees do not follow local laws.

Identify which of the following highlights the need for policies at Precision.

• ‘planning to hire over 100 employees’

• ‘could face legal consequences’

• ‘a recycling business’

• ‘needs to communicate expectations to employees’

Precision is a new recycling business with a factory in Victoria owned by Linda. The business is planning to hire over 100 employees in the following month. Linda understands that Precision needs to communicate expectations to employees as the business could face legal consequences if employees do not follow local laws.

Identify how Precision could establish policy to create business routines.

• Create policies to communicate behaviour and performance expectations of new staff.

• Create different policies for every new Precision employee.

• Assess employee response at Precision and update as needed.