Joyce Sun

Exercise 11.6 Revision (Page 380) 6. The Trade Practices Act 1974 (Cwlth) has a function to protect both consumers and business. First, it is designed to protect consumers from deceptive practices such as misleading packaging or misrepresentation of the place of production. It also deals with product safety and the conditions and warranties associated with products. Further, the act aims to regulate certain trade practices that may restrict competition (such as monopolistic power) because they can affect the price and quality of goods for the consumer. 7. Bait advertising refers to enticing customers into the shop through the advertisement of a certain product, then telling the customer that the product is no longer in stock and offering a more expensive substitute whereas referral selling refers to offering a product or service to a customer if they refer other customers to the business. Price fixing is where a business agrees to fix, control or maintain the price of goods or services. Unlike price fixing, resale price maintenance is where suppliers state a minimum price at which a product is to be sold. Exercise 11.7 Revision (Page 385) 1. Hiring the right employee is important for a business because they become the most valuable resource by offering their skills. Skilled employees are highly productive and result in creating wealth for the business. 2. External sources of employees for a business can come from advertisements in the media, Job Services Australia, and schools, universities or TAFE colleges. 3. The phrase skilled employees are more productive and create wealth for the business implement the idea that employees who have suitable skills for a particular business can improve the operations of the business and ultimately boost profits for the company. Selecting employees who possess the highest level of skills will help the business run more productively as the employee will know what to do and through their skills, will be prepared for what the business may demand. 4. Two options a business owner has if the skills levels of employees are not adequate enough for them to fulfil their jobs effectively include providing training to improve the skill levels and recruiting people who have the required skills. 5a) Holiday Pay: an extra amount that is calculated on the four weeks annual leave to which each fulltime, permanent employee is entitled. b) Leave Loading: an extra amount presently 17.5 per cent that is added to an employees holiday pay c) Superannuation: a scheme set up by the federal government. It required all employers to make a financial contribution to a fund that employees can access when they leave or retire from a job

Joyce Sun

6. On cost are also known as non wage cost due to these expenses that are not taken into account and are hidden. They are not a part of the wage or salary paid to the employee. 7. The employers main obligation is to make a financial contribution presently 9 per cent of an employees earnings for their ordinary hours of work to their employees superannuation account. 8a) In the perspective of an employer, abolishing leave loading would leave a positive impact as employers would not need to pay employees extra loading when they leave for their annual holiday. b) In the perspective of an employee, the idea of abolishing leave loading would leave a negative impact as workers that leave for their annual holiday would not be entitled to a percentage loading to spend during their holiday. Extension 2. Strategies to train an employee who is inexperienced in being a sales person at a boutique store include: 1. Provide basic training on how to communicate with customers 2. Provide information about the business and how it operates so that they are able to comprehend their surrounding and be able to answer inquiries from customers 3. Provide trainee periods (supervised by experienced workers from the business who have skills in being a sales person) so that they are able to develop skills in the sales department and be able to deal with any predicaments if they do arise