Elements and Performance Criteria

RANGE STATEMENT
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.
Options for the business legal structure may include:
company
cooperative
corporation
government owned enterprise
partnership
profit or not-for-profit legal structure
sole trader
trust
Options for the business legal structure may be influenced by:
confidentiality
contractual requirements
family/community/cultural expectations
ownership transfer
partnership considerations
preferences of owners/stakeholders
protection of stakeholders and assets
requirements of financial backers
superannuation
taxation
Appropriate sources may include:
business advisers
financial planners
government agencies
industry/trade associations
mentors
professional advisers (e.g. solicitors, accountants)
Legislation and regulatory requirements may include:
local, state/territory, commonwealth and international legislation, regulations and codes of practice affecting business operations such as:
relevant Acts and regulations
industry and OHS codes of practice
business registrations and licences
planning and other permissions
environmental legislation
industrial law, agency law, property law, consumer legislation and standards, Torts Law and duty of care
equal employment opportunity (EEO) and anti-discrimination legislation, anti-competition regulations
Legal rights and responsibilities may include:
culturally appropriate processes and protocols
marketing the business in accordance with consumer legislation
obligations imposed by choice of business structure
operating the business with a duty of care (Law of Torts)
Occupational health and safety and requirements must include:
complying with relevant OHS codes of practice
establishing and maintaining a system for managing OHS
establishing hazard management arrangements to assess and control the risks associated with workplace hazards including development of written safe operating procedures
establishing OHS record keeping arrangements in accordance with regulatory requirements
OHS duty of care responsibilities
registering with state/territory workers compensation authority if applicable
Taxation principles and requirements may include:
relevant taxation requirements/obligations for business
tax file number, Australian Business number, goods and services tax registration, PAYG and withholding arrangements
Legal documents may include:
appropriate software for financial records
certificate of incorporation
constitution documents
franchise agreements and financial documentation
partnership agreements
statutory books for companies (register of members, register of directors and minute books)
Records may include:
environmental
financial
OHS
personnel
taxation
OHS records may include:
accident reports and investigations
first aid and medical
hazardous substances register
instruction and training
manufacturers' and suppliers' information
material safety data sheets
OHS audits and inspections
plant maintenance and testing
workers compensation and rehabilitation
Procurement rights to products and services may include:
any form of licensing
royalties, copyright, patents, trademarks, registered design and applications, intellectual property, software licenses, franchises, agencies
Contracts with relevant people may include:
any person with whom the business has, or seeks to have, a performance-based relationship
owners, suppliers, employees, landlords, agents, distributors, customers
Insurance requirements may include:
comprehensive insurance for vehicles/property
professional indemnity insurance
public liability insurance
third party insurance on motor vehicles
workers compensation
other insurance cover as required by state/territory or commonwealth legislation, contractual obligations or as recommended for the industry/type of business

EVIDENCE GUIDE
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.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:
implementation of a systematic approach to identifying, managing and meeting legal and business requirements within culturally appropriate contexts
interpreting compliance data and formulating appropriate action
knowledge of relevant legislation.
Context of and specific resources for assessment
Assessment must ensure:
access to relevant documentation
candidate's individual circumstances and work in the context of establishing or running a small business, are the basis for assessment.
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:
portfolio of evidence including contracts negotiated and arranged
oral or written questioning to assess knowledge of relevant consumer legislation
review of procedures developed and implemented to ensure full compliance with relevant legislation and regulatory requirements
review of insurance cover acquired.
Guidance information for assessment
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:
BSBSMB402A Plan small business finances
BSBSMB404A Undertake small business planning.