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Establish business and legal requirements

Unit Descriptor The unit involves identifying and complying with business legal and administrative requirements. It is suitable for setting up or existing micro and small businesses or a department in a larger organisation. This unit is related to BSBSBM404A Undertake business planning.

1 . Identify and Implement business legal requirements
  1. Possible legal options for the business structure are identified

  2. Legislation, codes and regulatory requirements affecting the structure and operations of the business are determined and procedures are developed and implemented to ensure full compliance

2 . Comply with legislation, codes and regulatory requirements
  1. Systems are established to ensure the legal rights and responsibilities of the business are identified, and the business is adequately protected, especially in regard to Occupational Health and Safety, business registration and environmental requirements

  2. Taxation principles and requirements relative to the business are identified, and procedures are followed to ensure compliance

  3. Legal documents are identified, carefully maintained and relevant records are kept and updated to ensure their ongoing security and accessibility

  4. Insurance requirements are identified and adequate cover is acquired

  5. Compliance with legal and regulatory requirements monitored

  6. Investigations conducted to identify areas of non-compliance with legal and regulatory requirements and corrective action taken where required

3 . Negotiate and arrange contracts
  1. Legal advice on contractual rights and obligations is sought, if required, to clarify business liabilities

  2. Potential products/services are investigated and assessed to determine procurement rights and to ensure protection of business interests where applicable

  3. Conditions applying to production/provision of relevant products and services are investigated to ensure compliance with legal and contractual requirements as required

  4. Contractual procurement rights for goods and services including contracts with relevant people , negotiated and secured as required in accordance with the business plan

  5. Options for leasing/ownership of business premises identified and contractual arrangements completed in accordance with the business plan

Key CompetencyExamples of ApplicationPerformance
How can information be collected, analysed and organised?to establish business structure2
How are ideas and information communicated within this competency?to determine business legal requirements3
How are activities planned and organised?to comply with legal requirements for the business legal structure3
How are problem solving skills applied?to obtain compliance with legal requirements2
How are mathematical ideas and techniques used?to support the business operation2
How is use of technology applied?to reduce risk and establish business legal structure3
How is team work used within this competency?to optimise business performance1

Range Statement

Legislation, codes and national standards relevant to the workplace which may include:

Occupational Health and Safety and requirements must include:

And may include:

Legal options for the business structure may include:

And may be influenced by:

Ownership transfer considerations may include:

Legislation, codes and regulatory requirements may include:

Legal rights and responsibilities may include:

Taxation principles and requirements may include:

Legal documents may include:

Recordkeeping may include but is not restricted to:

OHS recordkeeping may include:

Insurance requirements may include:

Procurement rights to products and services may include:

Contracts with relevant people may include:

Evidence Guide

Critical Aspects of Evidence

Underpinning Knowledge

At this level the learner must demonstrate understanding of a broad knowledge base incorporating some theoretical concepts.

Underpinning Skills

Resource Implications

Consistency of Performance

Context/s of Assessment