VCE UNIT 2 Business Management Questions and Answers ( Graded A+)

VCE UNIT 2 Business Management Questions and Answers ( Graded A+) Domain name - ANS- a unique name identifying the website in a web address Consumer guarantees - ANS- consumers are guaranteed rights to repair, replace or refunds under the Australian consumer law Warranty - ANS- a written guarantee, issued to the purchaser of an article by its manufacturer, promising to repair or replace it if necessary within a specified period of time. Business taxation compliance - ANS- A business must pay tax. A business carrying out an enterprise in Australia must obtain an Australian business number. Business partnerships and companies require their own tax file number. WorkCover Insurance - ANS- compulsory insurance scheme that provides employers with insurance cover for the cost of benefits if workers are injured or become ill because of their work Superannuation - ANS- a pension or lump sum payment made to workers on retirement; the money comes from employers' contributions made during the working life of the employee Public liability insurance - ANS- to protect the business against damages or injuries to another person or property Record-keeping - ANS- Maintaining accurate and complete records of all financial activities in your business. source document - ANS- documents that provide evidence of the transaction, its date, parties and financial value (if any) Cash book - ANS- one of the simplest forms of financial record keeping; sets out all the cash transactions of a business including receipts and payments expenses (creditors) - ANS- people you owe money to Establishing a bank account for business - ANS- It is compulsory to have a separate account if a business is a company, partnership or trust. Cash flow - ANS- tracking the cash or money coming into and going out of the business Financial control and business document required - ANS- 1. safeguard assets 2. ensure financial information is accurate and reliable. 3. ensure compliance with all financial and operational requirements Cash controls - ANS- - cash registers should be used and cash stored securely. - Cash should be banked regularly, preferably daily. - Bank statement and cash books should be checked regularly and reconciled. - Bank statement and cash books should be checked regularly and reconciled. Bank statement - ANS- a periodic statement where the bank itemises the transactions relating to an account; for example, debits, credits, government and bank charges. profit and loss statement - ANS- an accounting report that outlines the revenue less the expenses for an accounting period. It provides a business with an overview of whether it has made a profit for the accounting period. Balance sheet - ANS- an accounting report that sets out the assets, liabilities and proprietorship (owners' equity) of a business as at a given date. Environmental sustainability - ANS- the ability of an ecosystem to maintain itself into the earth's resources at a rate they can be replenished. Procurement policy - ANS- the rules and regulations that are set in place to govern the process of acquiring goods and services needed by a business to function efficiently. Customer data base - ANS- the collection of information gathered from each customer. A database may include contact information, as well as details about past purchases and future needs. Staff - ANS- a group of persons, as employees, charged with carrying out the work of a business. E.g Blue collar or white collar Stakeholders - ANS- an individual or group that has a direct or vested interest in the activities of a business. SMART - ANS- objectives or goals which are specific, measurable, attainable or achievable, relevant to realistic and timely or time bound. Management by objectives (MBO) - ANS- a process of setting goals, using the SMART principle, which relate to an example's key areas of responsibility. It creates a sense of direction and provides a measure of assessing the work performance of the employee. Human resource management (HRM) - ANS- the management of a wide range of responsibilities relating to the human (employees) function within a business in order to increase the efficiency of both employees and the business. Job analysis - ANS- a process to identify and determine in detail the particular job duties and requirements and the relative importance of these duties for a given job. Job - ANS- a group of tasks performed by an employee Job design - ANS- grouping together of tasks for a particular job, which should incorporate variety and challenge for the job holder. Recruitment - ANS- the process of finding the best qualified pool of applicants. internal recruitment - ANS- assessment of current available pool of applicants from existing staff who have the skills or qualifications to fill and perform the job vacancy. Intranet - ANS- the internal or private network of a business based on internet technology. Word-of-mouth - ANS- an oral or written recommendation of someone External recruitment - ANS- the assessment of current available pool of job candidates, other than existing staff, to ascertain if any are sufficiently skilled or qualified to fill and perform existing job vacancies. The advantages of external recruitment - ANS- 1. A large pool of applicant 2. New insights, skills and abilities brought into the business. 3. Costs can be lower, as business does not have to fill two positions 4. New approach to work, issues and problems The disadvantages of external recruitment - ANS- 1. Attracting/selection of new employee is timeconsuming and more difficult 2. Induction takes longer 3. Limits career advancement of existing employees 4. The greater element of risk as a new employee is an unknown person 5. Costly form of recruitment Job board - ANS- websites where businesses pay a fee to the job board to list their job on the site and will often accept job applications directly from the job board. Social Media - ANS- websites and applications that enable users to create and share content to participate in social networking. For example; Linked In, Facebook and Twitter to advertise job openings. Selection - ANS- a process undertaken by a business to decide whether to make a job offer to a candidate. Interview - ANS- a one-on-one conversation between a job applicant and a representative(s) of an employer that is conducted to assess whether the applicant should be hired. Psychological testing - ANS- (AKA psychometric testing) provides a scientific component to selection. It aims to assess the potential of an individual to perform in a particular job role and covers: 1. Aptitude test a test of special abilities (e.g. clerical, language, artistic) that are required for a specific job. 2. Personality or temperament traits which look at the behaviour of a person in the workplace. 3. Motivational - looks at a person's drive and initiative. Work testing - ANS- This form of testing can provide additional objective information which relates to skills that may be difficult to assess using other methods, such as interview