Corporate Governance Practices Of Small Businesses

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Outline the corporate governance practices of small businesses in Australia? Compare and evaluate the role of owners and managers.

Business is an economic activity, which is associated with systematic production and allocation of goods and services that gives better satisfaction for human being. Generally, business play the major role to develop the social and economic condition of Australia. There are different types of business such as Small business, Franchise, Online business, Family business, Independent contractor, Importer and Exporter which may depend on personal circumstances, interests, finances and business objectives. Moreover, among these varieties a number of criteria are used to define the small business for example total
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However, all companies have an obligation to keep their minimum seven year old financial records which must comply with tax regulation, superannuation, health and safety and environment laws. It should ensure an effective relationship with shareholders (Heenetigala, K. Armstrong, A. 2011). So, ethical and responsible decision making is good key to promote the governance practices. For enhance, first key is, to establish code of conduct (to maintain the company’s confidence), second policy related with diversity (means disclose in each annual report the proportion of women employees in the whole organization) (ASX, 2007, p.10).
There are several roles of the owner of small business in an organisation related to the corporate governance. First of all, the owner is involved in finance performance to preparing annual forecast and who has access to at least one year’s financial records. The owners always runs their budgets and projections, especially about sales and income of the business, to handle financial conditions. In addition, budgets and annual forecasting by finance department gives an overview of the financial performance conduct monthly and yearly. A small business owner usually wants to expertise their products and services which are generally related with customer’s internal and external
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