Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
This unit describes the performance outcomes, skills and knowledge required to identify and comply with the regulatory, legal, taxation and insurance requirements, and risk management needs of small business. Specific legal requirements apply to the management of a small business. |
Application of the Unit
Application of the unit |
This work is undertaken by individuals who operate a small business. The unit is suitable for existing micro and small businesses or setting up a new business or a department in a larger organisation. |
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Prerequisite units |
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Employability Skills Information
Employability skills |
This unit contains employability skills. |
Elements and Performance Criteria Pre-Content
Elements describe the essential outcomes of a unit of competency. |
Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
1. Identify and implement business legal requirements |
1.1. Identify and research possible options for the business legal structure using appropriate sources 1.2. Determine legislation and regulatory requirements affecting the operations of the business under its chosen structure 1.3. Develop and implement procedures to ensure full compliance with relevant legislation and regulatory requirements |
2. Comply with legislation, codes and regulatory requirements |
2.1. Establish systems to ensure the legal rights and responsibilities of the business are identified and the business is adequately protected, specifically in relation to occupational health and safety (OHS ), business registration and environmental requirements 2.2. Identify taxation principles and requirements relative to the business and follow procedures to ensure compliance 2.3. Identify and carefully maintain legal documents and maintain and update relevant records to ensure their ongoing security and accessibility 2.4. Monitor the provision of products and services of the business to protect legal rights and to comply with legal responsibilities 2.5. Conduct investigations to identify areas of non-compliance with legal and regulatory requirements and take corrective action where necessary |
3. Negotiate and arrange contracts |
3.1. Seek legal advice on contractual rights and obligations, if required, to clarify business liabilities 3.2. Investigate and assess potential products/services to determine procurement rights and to ensure protection of business interests where applicable 3.3. Negotiate and secure contractual procurement rights for goods and services including contracts with relevant people , as required, in accordance with the business plan 3.4. Identify insurance requirements and acquire adequate cover 3.5. Identify options for leasing/ownership of business premises and complete contractual arrangements in accordance with the business plan |
Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
This section describes the skills and knowledge required for this unit. |
Required skills |
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Required knowledge |
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Evidence Guide
EVIDENCE GUIDE |
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The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package. |
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Overview of assessment |
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Critical aspects for assessment and evidence required to demonstrate competency in this unit |
Evidence of the following is essential:
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Context of and specific resources for assessment |
Assessment must ensure:
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Method of assessment |
A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:
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Guidance information for assessment |
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:
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Range Statement
RANGE STATEMENT |
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The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included. |
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Options for the business legal structure may include: |
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Options for the business legal structure may be influenced by: |
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Appropriate sources may include: |
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Legislation and regulatory requirements may include: |
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Legal rights and responsibilities may include: |
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Occupational health and safety and requirements must include: |
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Taxation principles and requirements may include: |
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Legal documents may include: |
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Records may include: |
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OHS records may include: |
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Procurement rights to products and services may include: |
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Contracts with relevant people may include: |
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Insurance requirements may include: |
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Unit Sector(s)
Unit sector |
Competency field
Competency field |
Management and Leadership - Small and Micro Business |
Co-requisite units
Co-requisite units |
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