Part 3 Short answer questions
Select four of the following and complete a quarter of a page on each.
1. Discuss in detail: Tax is compulsory for all Australians because the money collected by the Australian Tax
Office is used to fund services and resources for all Australians.
2. “The hardest thing to understand in the world is income tax.” Albert Einstein, scientist. Explain what you
think everyone should know about Income Tax.
3. Explain the process of Bank Reconciliations and list the advantages and disadvantages of completing this
process more than once a year.
4. Anyone who wants to go into business must carefully consider the advantages and disadvantages of the
businesses structure. If five years in the future you wanted to start a business, which structure would you
choose and why?
5. “There is only one boss. The customer. And he can fire ever body in the company from the chairman on
down, simply by spending his money somewhere else.” Sam Walton. Why are customers the most
important people for any business?
6. “Being good in business is the most fascinating kind of art. Making money is are and working is art and
good business is the best art.” Andy Warhol, artist. Explain why preparing a Statement of Receipts and
Payments is important to a business.
7. “A business that makes nothing but money is a poor business.” Henry Ford, car maker. Do you agree or
disagree.
8. “A bank is a place that will lend you money if you can prove that you don’t need it.” Bob Hope, comedian.
Discuss how a business would prove that it can pay back any money that it borrowed from the bank and
therefore be eligible for a loan.
9. All information about transactions should be recorded on source documents. Explain how a business is more
likely to succeed if it has reliable information. Include a list of source documents that would be necessary of
even the most basic of businesses.
10. “Never give anyone the advice to buy or sell shares, because the most innocent piece of advice can turn out
badly.” Discuss what the average person should know about the stock market.
11. “If you're saving for the long run, it's actually a good thing when the market is down because the more
shares you have, the more you can potentially make when markets rise. And over time - decades, not
months - the markets rise more than they fall.” Explain in detail how the stock market work?
12. “One of the most feared expression in modern times is ‘the computer is down’.” Discuss how computers have
made life easier for people operating a business.