NCEA Level 1 Business Studies (90838) 2010 — page 1 of 4
Assessment Schedule – 2010
Business Studies: Demonstrate understanding of external factors influencing a small
business (90838)
Evidence Statement
Q
Evidence
Achievement
Achievement
with Merit
Achievement
with Excellence
ONE
(a)
(b)
Definition:
Environmental sustainability refers to
the maintaining of natural resources
and the environment for use by
future generations, eg waste
management that does not pollute
rivers.
THREE of the
following:
TWO of the
following:
 term is defined
AND an example
provided
 two effects of the
fishing permit are
explained
 one effect is
described
Effects on business:
 a negative impact
is stated
 a relevant longerterm effect is
explained
 costs the firm more
 limits amount of fish they can
catch
 limits on the type / size of fish they
can catch
 takes time to apply for permit.
(c)
Negative impact on customers:
 costs of the permit may be passed
on in the form of higher prices
 may limit the number and size of
fish caught
 may limit the time or places the
company can take them fishing.
(d)
Positive outcome:
 enhanced reputation
 awards
 increased customers
Longer-term effect:
 steady increase in customer
numbers, profits / revenue
 sustained profits lead to potential
for growth in then future.
Reason for customer’s choice:
 aligns with their own values
 make them feel they are
contributing to a better world.
 a positive outcome
for Fantasy Fishin’
is outlined
 a relevant longerterm effect is
stated.
(Answers will
typically state
relevant examples,
business knowledge,
or Māori business
concepts.)
 why customers
might choose
Fantasy Fishin’
over a competitor
is explained.
(Answers will
typically include
relevant examples,
business knowledge,
or Māori business
concepts.)
A comprehensive
understanding will
involve ALL of the
following:
 a positive outcome
for Fantasy Fishin’
is outlined
 a relevant longerterm effect is fully
explained
 why customers
might choose
Fantasy Fishin’
over a competitor
is explained.
(Answers will
typically integrate
relevant examples,
business knowledge,
or Māori business
concepts into
explanations.)
NCEA Level 1 Business Studies (90838) 2010 — page 2 of 4
Q
Evidence
Achievement
Achievement
with Merit
Achievement
with Excellence
TWO
(a)
(b)
Definition: Citizenship means
practising social responsibility /
acting for the well-being of the
community or society.
Reasons:
 business needs to role-model
good practice
 business is a member of the
community
(c)
TWO of the
following:
 definition is stated
AND an example
given
 two reasons are
explained
 a reason is stated
 a benefit for
Fantasy Fishin’ is
stated
 develop reputation
 A reaction is
described
Benefit:
 an effect on
Fantasy Fishin’s
reputation is
outlined
 customers choose to use their
service
 positive environment attracts staff.
(d)
THREE of the
following:
Staff reaction:
 positive – pride
 negative – anger
 some may leave
 staff may not perform so well.
Positive effect on reputation:
 reputation amongst customers will
improve, as it will be seen to be
practising good citizenship.
Negative publicity:
 it may be viewed as a marketing
tool
 benefits to community may be
overlooked.
 a possible reason
for the negative
publicity is stated.
(Answers will
typically state
relevant examples,
business knowledge,
or Māori business
concepts.)
 an effect on
Fantasy Fishin’s
reputation is
explained
 a reason why
negative publicity
may result is
explained.
(Answers will
typically include
relevant examples,
business knowledge,
or Māori business
concepts.)
A comprehensive
understanding will
involve ALL of the
following:
 a reaction of staff
is described
 an effect on
Fantasy Fishin’s
reputation is
explained
 a reason why the
policy might result
in negative
publicity for
Fantasy Fishin’ is
explained.
(Answers will
typically integrate
relevant examples,
business knowledge,
or Māori business
concepts into
explanations.)
NCEA Level 1 Business Studies (90838) 2010 — page 3 of 4
Q
Evidence
Achievement
Achievement
with Merit
Achievement
with Excellence
THREE
(a)
Definition: A recession is a downturn
in economic activity / two consecutive
quarters of negative growth.
THREE of the
following:
TWO of the
following:
(b)
Effect:
 a definition is
given
 lower sales
 an effect is stated
 a reason for higher
investment is
explained
 less trading
 a reason for
investment is
stated
 need to cut costs
 need for retrenchment /
redundancy
 business shuts down.
(c)
Why invest:
 increased business and consumer
confidence
 increased savings, so more funds
available
 costs are lower, so businesses
expand to take advantage of this.
(d)
Definition: consumer confidence is
when people feel more assured
about their personal financial status
and may increase spending.
Impact:
 business needs to meet increased
demand, leading to increased
profits / revenue
 more sales leading to increased
profits.
Flow-on for employment:
 increase in jobs available, as the
business needs more labour to
meet increased demand.
 a definition is
stated
 a direct impact is
described
 a flow-on effect on
employment is
stated.
(Answers will
typically state
relevant examples,
business knowledge,
or Māori business
concepts.)
 a direct impact on
the named
business is
explained
 a flow-on effect on
employment is
explained.
(Answers will
typically include
relevant examples,
business knowledge,
or Māori business
concepts.)
A comprehensive
understanding will
involve ALL of the
following:
 a definition of
consumer
confidence is
stated
 a direct impact on
the named
business is fully
explained
 a flow-on effect on
employment for
the named
business is
explained.
(Answers will
typically integrate
relevant examples,
business knowledge,
or Māori business
concepts into
explanations.)
NCEA Level 1 Business Studies (90838) 2010 — page 4 of 4
Q
Evidence
Achievement
Achievement
with Merit
Achievement
with Excellence
FOUR
(a)
Reasons:
 may be an important area for
customers
 may be an important area for
resources
 attracts customers to the area
 promotes their product.
(b)
Groupings increase competition
because:
 customers can easily and quickly
compare prices
 businesses have to use price
competition to attract customers
 businesses have to use non-price
competition to attract customers.
(c)
Benefits for customers:
 lower prices
 allows greater choice
 more convenient to shop and
compare.
(d)
Definition: market share is the
percentage of sales that a business
has out of the total market sales.
Immediate effect:
THREE of the
following:
TWO of the
following:
 a reason is
outlined
 a way in which
local competition
increases is
explained
 one way in which
local competition
increases is
described
 a benefit for
customers is
outlined
 a definition is
stated AND an
example for the
named business is
given
 an immediate
effect is described
 a long-term effect
is stated.
(Answers will
typically state
relevant examples,
business knowledge,
or Māori business
concepts.)
 an immediate
effect on the
named business is
explained
 a long-term effect
on the named
business is
explained.
(Answers will
typically include
relevant examples,
business knowledge,
or Māori business
concepts.)
A comprehensive
understanding will
involve ALL of the
following:
 a definition of
market share is
stated
 an immediate
effect on the
named business is
fully explained
 a long-term effect
on the named
business is fully
explained.
(Answers will
typically integrate
relevant examples,
business knowledge,
or Māori business
concepts into
explanations.)
 fewer customers, therefore less
income / profit.
Long-term effects:
 lay off workers
 have to cut costs
 business closure / bankruptcy.
Judgement Statement
Achievement
Achievement with Merit
Achievement with Excellence
3M
3E
3A
OR
1 E + 1 M + 1 other attempted