NCEA Level 1 Business Studies (90837) 2010 — page 1 of 5
Assessment Schedule – 2010
Business Studies: Demonstrate an understanding of internal features of a small
business (90837)
Evidence Statement
Q
Evidence
Achievement
Achievement
with Merit
Achievement
with Excellence
ONE
(a)
(b)
Job production:
One single product is made at a time,
usually to meet the customer’s specific
requirements.
THREE of the
following:
TWO of the
following:
 correct definition
is stated
Batch production:
Products are made in batches of a
certain quantity, eg jandals made in
batches of different sizes.
Flow production:
Products are made using a continuous
process, ie an assembly line, eg
washing machines.
 ONE method of
production is
described AND
a suitable
example is given
 the key difference
between the two
methods of
production is
explained, using
suitable
examples
(c)
Method: job production.
(d)
Method:
Batch, eg 1,000 jar-loads of apricot and
strawberry jam are made.
OR flow, eg the bottling and labelling of
the jam.
Batch advantages:
 flexible, as production can easily be
changed
 allows variety for workers’ jobs
 production less affected by breakdown
of one part of the machinery.
Flow advantages:
 lower costs through economies of
scale and capital-intensive production
 prices are lower due to lower costs
 can use unskilled workers
 faster
 time-saving, as goods do not move
around factory as with batch
production.
Disadvantages of a different method:
 Job – costs more, as it is more labourintensive / uses skilled workers / can be
time-consuming.
 Batch – expensive, as products need
to be moved from one place to another
within factory / storage space required
for raw materials and semi-finished
goods.
 Flow – boring for workers, as work is
monotonous / high costs of capital for
production / if one part breaks down, it
stops entire production.
 correct method is
stated
 either batch or
flow method is
stated AND a
suitable example
for Jonah’s Jams
is given
 an advantage of
the method is
described
 a disadvantage of
another method
is stated.
(Answers will
typically state
relevant examples,
business
knowledge, or
Māori business
concepts.)
 one advantage of
the method for
Jonah’s Jams is
explained
 one disadvantage
of another
method is
explained.
(Answers will
typically include
relevant examples,
business
knowledge, or
Māori business
concepts.)
A comprehensive
understanding will
involve ALL of the
following:
 suitable method
stated
 example given
 one advantage
of the method for
Jonah’s Jams is
fully explained
 one
disadvantage of
another method
for Jonah’s Jams
is fully
explained
 one other
advantage or
disadvantage
stated.
(Answers will
typically integrate
relevant examples,
business
knowledge, or
Māori business
concepts into
explanations.)
NCEA Level 1 Business Studies (90837) 2010 — page 2 of 5
Q
Evidence
Achievement
Achievement
with Merit
Achievement
with Excellence
TWO
(a)
Responsibilities of employers:
 pay workers on time
 pay fair wages
 provide good working conditions
 provide reasonable breaks
 provide appropriate leave.
(b)
Benefits to business (must relate to a
specific responsibility):
 productive and motivated workers
 workers are less likely to have
grievances
 better job retention
 lower staff turnover.
(c)
Responsibilities of workers:
 complete all job tasks
 give a full day’s work
 be loyal and honest
 communicate problems to employer as
they occur
 act responsibly and professionally.
(d)
Possible issue:
 co-workers become resentful
 job is not completed
 holds up other areas of production.
Impact of specific issue:
 staff morale is affected
 company loses sales and then profit
 company falls behind on meeting its
orders
 impacts on supply chain.
Resolution of specific issue:
 manager needs to meet with Aliah to
see if he / she can support / assist her
to get to work on time
 manager gives her a verbal / written
warning
 negotiate a solution that suits both
parties, eg start later and finish later.
THREE of the
following:
TWO of the
following:
 a responsibility of
the employer is
identified
 a specific benefit
to the business is
explained
 a specific benefit
to the business is
described
 an impact on
Jonah’s Jams is
explained
 a responsibility of
workers is stated
 a resolution is
explained.
 an issue is
outlined AND an
example for
Jonah’s Jams is
provided
 an impact is
described
 a possible
solution is
stated.
(Answers will
typically state
relevant examples,
business
knowledge, or
Māori business
concepts.)
(Answers will
typically include
relevant examples,
business
knowledge, or
Māori business
concepts.)
A comprehensive
understanding will
involve ALL of the
following:
 an impact on
Jonah’s Jams is
explained
 a resolution of
the issue is
explained
 there must be a
clear link
between the
impact and the
resolution.
(Answers will
typically integrate
relevant examples,
business
knowledge, or
Māori business
concepts into
explanations.)
NCEA Level 1 Business Studies (90837) 2010 — page 3 of 5
Q
Evidence
Achievement
Achievement
with Merit
Achievement
with Excellence
THREE
(a)
(b)
Purpose of short-term finance: for dayto-day operations.
Purpose of long-term finance: for
business expansion or capital
acquisition.
Description: A bank loan is a sum of
money borrowed over a fixed period of
time, which must be repaid with interest.
Usually some security is required.
Disadvantage:
 high interest rates
 need collateral to secure loan
 can be difficult to obtain if you are a
small business.
(c)
Factors:
 time required
 amount required
 purpose of finance
 extra costs of the finance.
(d)
Source of finance: eg bringing in a
partner.
Description: the business owner offers a
share to another party in return for a
percentage buy into the business.
Why suitable:
 raises the capital required
 does not require interest
 quick and easy to secure
 partner may bring skills or may be a
sleeping partner.
Why better: eg compared with an
overdraft.
 overdraft has high interest associated
with it
 needs to be repaid quickly
 is short term
 may be hard to secure the amount
required.
THREE of the
following:
TWO of the
following:
 purpose is
described for
short-term OR
long-term finance
 two factors are
explained
 description AND
disadvantage are
stated
 a factor is stated
 a source of
funding is
described AND
a relevant
example is given
 a reason why the
source is suitable
is stated
 why it would be a
better source is
stated.
(Answers will
typically state
relevant examples,
business
knowledge, or
Māori business
concepts.)
 a suitable source
of funding for the
named business
is explained
A comprehensive
understanding will
involve BOTH of
the following:
 a suitable source
of funding is fully
explained for the
named business
 why it would be a  why it is a better
source of finance
better source
than another
than another is
source is fully
explained.
explained with
(Answers will
reference to the
typically include
named business.
relevant examples,
(Answers will
business
typically integrate
knowledge, or
relevant examples,
Māori business
business
concepts.)
knowledge, or
Māori business
concepts into
explanations.)
NCEA Level 1 Business Studies (90837) 2010 — page 4 of 5
Q
Evidence
Achievement
Achievement
with Merit
Achievement
with Excellence
FOUR
(a)
Characteristics:
 risk-taker
 organised
 persistent
 optimistic
 opportunistic
 committed
 hard-working.
(b)
Reason:
 want to be their own boss because
they want to choose when to work
 have passion for a product or service
because they are excited about a
product or have expertise in that area
 want the rewards because they do not
want to do all the work and others get
profit
 want to choose own hours, because
they want flexibility to do other things
 want to make all decisions, because
they want to be in control
 see a gap in the market because they
realise profit potential
 have been made redundant.
(c)
Disadvantages:
 have all the liability and responsibility
 long hours
 hard work
 stressful
 obligations to others
 hard to raise capital.
(d)
Example for innovation: the
entrepreneur in question has created /
taken advantage of a gap in the market
or a niche market to provide a unique
product or service.
Contribution to success, eg:
 nothing else on the market to fulfil the
need
 previous competition had failed
 the product in question had extra
features that solved issues with the
competitor’s original product.
More important than for example the
business cycle: as this product was
fulfilling a necessary requirement / need,
it was in demand despite the economy’s
position of recession in the business
cycle and the “credit crunch”. Therefore,
it has been successful.
THREE of the
following:
TWO of the
following:
 one characteristic
is identified
 one reason is
explained
 a reason is
described
 contribution the
factor has made
to business
success is
explained
 one disadvantage
is stated
 a factor is
described AND
an example
relevant to the
named small
business or their
owner is
provided
 a contribution is
described
 a reason why the
factor is more
important is
stated.
(Answers will
typically state
relevant examples,
business
knowledge, or
Māori business
concepts.)
 importance
compared to one
other key factor is
explained.
(Answers will
typically include
relevant examples,
business
knowledge, or
Māori business
concepts.)
A comprehensive
understanding will
involve BOTH of
the following:
 contribution the
factor has made
to business
success is fully
explained
 importance
compared to
ONE other key
factor is fully
explained.
(Answers will
typically integrate
relevant examples,
business
knowledge, or
Māori business
concepts into
explanations.)
NCEA Level 1 Business Studies (90837) 2010 — page 5 of 5
Judgement Statement
Achievement
Achievement with Merit
Achievement with Excellence
3A
3M
3E