4AB - Theory Review (MCQ)

During the establishment of a business, business owners should always seek assistance from external professionals.

• TRUE

• FALSE

Answer explanation

As external professionals have expertise in particular areas, if a business owner lacks certain skills and/or knowledge in a particular area, then they should consider hiring these individuals for their unique set of skills.

Financial advisers can help a business by:

• ensuring the business complies with all relevant laws & regulations.

• analysing & assisting in the management of current business expenses.

Answer explanation

Financial advisers may be required to examine a business’s expenses, and determine areas in which spending can be minimised.

Legal advisers only provide general legal advice as they do not specialise in a particular area of law.

• TRUE

• FALSE

Answer explanation

Businesses may choose to hire legal advisers that provide general legal advice, or legal advisers that specialise in a particular area of law, such as contract law, patent law, or labour law.

As developments in technology have provided businesses with access to large amounts of customer data, a business owner should consider hiring ​ (a)   to ensure data is properly stored.

• accountant
• financial advisers
• ICT specialists
• legal advisers
• marketing advisers

Answer explanation

ICT specialists may be required to establish firewalls and install antivirus software within a business’s technology systems to minimise the risk of data breaches.

ICT specialists may be required to:

• provide training to employees regarding privacy issues and establish security policies to prevent data breaches.

• develop digital and social media marketing strategies.

Answer explanation

By providing training to employees and establishing security policies, ICT specialists can help minimise the risk of security breaches to ensure all sensitive information is protected.

Marketing advisers can help a business develop the most appropriate advertising campaigns that will successfully reach the business’s target market.

• TRUE

• FALSE

Answer explanation

Marketing advisers can help a business determine whether it should advertise its products through television commercials, social media, email, or other methods to best reach its target market.

Business owners may not need to hire an external professional in an area they already have knowledge and expertise in.

• TRUE

• FALSE

Answer explanation

While external professionals may be able to assist business owners that are already knowledgeable in their area of expertise, business owners may decide they do not need this assistance.

Businesses that do not comply with legal requirements will only have to pay fines.

• TRUE

• FALSE

Answer explanation

Businesses that fail to comply with the law can face a number of legal consequences, including fines, suspensions, or even forced closure.

An owner does not have to register a business name if they decide to operate the business under their own name.

• TRUE

• FALSE

Answer explanation

An owner does not have to register a business name if they use their own name, unless they choose to add extra terms, such as ‘.co’.

A business that wants to establish an online presence should (a)   .

• register a website domain
• register a business name
• comply with trade practices legislation
• comply with business tax requirements
• pay for work safe insurance

Answer explanation

As a website domain is a website address that identifies a business’s online site, all businesses that wish to sell their goods and services online, or advertise their products through a website, should register a website domain.