VCE BM U2 AOS 1 - Legal Requirements Review

Which of the following is a legal requirement for starting an online business?

• Registering a business name with ASIC

• Hiring at least 10 employees

• Opening a physical store

• Offering free shipping

What is the purpose of registering a domain name for an online business?

• To ensure the business name is unique

• To address the website on the internet

• To comply with tax regulations

• To protect consumer rights

Which of the following is NOT a federal tax a business can expect to pay?

• Income tax

• Group tax (PAYG)

• Goods and services tax (GST)

• Property tax

What does WorkCover insurance NOT cover?

• Replacement of lost income

• Medical and rehabilitation treatment costs

• Legal costs

• Business expansion costs

Which tax is taken directly out of the employee’s wages by the employer?

• Income tax

• Group tax (PAYG)

• Goods and services tax (GST)

• Fringe benefits tax (FBT)

What is the rate of the goods and services tax (GST) in Australia?

• 5%

• 10%

• 15%

• 20%

Describe two anti-competitive practices.

• Cartels and misuse of market power

• Exclusive dealing and resale price maintenance

• Mergers and acquisitions and health regulations

• Land zoning and fire regulations

What is a cartel?

• A single business dominating a market

• Two or more businesses agreeing to act together to fix prices or restrict outputs

• A business imposing restrictions on another's freedom to deal with other businesses

• Suppliers setting the prices at which retailers will sell their products

Which act prohibits businesses from making agreements with competitors to fix prices, rig bids, share markets, or restrict outputs?

• The Fair Trading Act

• The Competition and Consumer Act

• The Business Practices Act

• The Trade Practices Act

What is exclusive dealing?

• When suppliers set the prices at which retailers will sell their products

• When one business trading with another imposes restrictions on the other’s freedom to deal with other businesses

• When businesses agree to fix prices or restrict outputs

• When a business uses its market power to damage or get rid of a competitor