MACARTHUR IStudent Number I I I I I I I I I I
ANGLICANSCHOOL
2017
PRELIMINARY EXAMINATION
BUSINESS STUDIES
General Instructions
•
•
•
•
•
•
•
•
Reading time: 5 minutes
Working time: 2 hours
The supervising teacher will tell
you when to begin writing.
Attempt ALL questions
Write using black pen
Do NOT write in pencil
Write answers on examination
paper and on booklets provided
Weighting= 30% of course mark
Directions for this Examination
Total Marks = 80 marks
Pages 2-8 20 marks
Section I
•
•
Attempt Questions 1-20
Allow about 25 minutes for this section
Pages 9-13
Section II
•
•
Attempt Questions 21 - 24
Allow about 1 hour for this section
Section III
•
•
Staff Use Only: No. of Candidates: 38
40 marks
Page 14 20 marks
Attempt Question 25
Allow about 35 minutes for this section
Paper Set By: N James
I Macarthur
Papers Returned To: N James
Examination Booklets - I per student (8 page)
Colle ction Proccdures :
Please coll ect in one bundl e. Ensure student number is on both examination paper examination booklet
STUDENT NUMBER/NAME: ...... . .................
..
Section I
20 marks
Attempt Questions 1-20
Allow about 25 minutes for this section
Select the alternative A, B, C or D that best answers the question and indicate your choice with a
cross (X) in the appropriate space on the grid below.
A
B
C
D
A
1
11
2
12
3
13
4
14
5
15
6
16
7
17
8
18
9
19
10
20
Page2
B
C
D
STUDENT NUMBER/NAME : .. ... .... . . .. .. .. .... .... .
1
Childcare facilities and house cleaning are best classified as which type of industry?
(A) Primary
2
(B)
Secondary
(C)
Quaternary
(D)
Quinary
Which of the following is an entitlement for a casual employee?
(A) Regular working hours
(B)
Sick leave and maternity leave
(C)
Holiday leave and long service leave
(D) Fair pay and safe working conditions
3
Which of the following is an example of an internal source of finance for a business?
(A) Overdraft
(B)
Mortgage
(C)
Sale of asset
(D) Leasing
4
Which level of government regulates building regulations, trading hours and land zoning?
(A) Local
(B)
State
(C)
Federal
(D) International
5
Which type of income is paid to the shareholders of a business?
(A) Dividends
(B)
Interest
(C)
Profits
(D) Wages
Page3
STUDENT NUMBER/NAME : .......... ... .. .. .. ..... ..
6
7
Which business legal structure is listed on Australia's Securities Exchange?
(A)
Private company
(B)
Public company
(C)
Unincorporated company
(D)
Government owned business
Steve won a large amount of money playing Lotto. The local newspaper printed an unpaid
story about Steve and the shop where he purchased the winning ticket.
This is an example of which type of marketing for the shop?
(A)
Advertising
(B)
Publicity
(C)
Sales promotion
(D) Word of mouth
8
A small business owner has no staff and is legally responsible for all debts.
Which of the following best describes this business structure?
9
(A)
Partnership
(B)
Private company
(C)
Public company
(D)
Sole trader
Which tax is levied by the NSW state government?
(A)
Payroll tax
(B)
Company tax
(C)
Pay-as-you-go tax
(D)
Fringe benefits tax
Page4
STUDENT NUMBER/NAME : .. .. ......... . ...... ..... .
10
11
12
Which management approach utilises an autocratic leadership style and hierarchical
organisational structure?
(A)
Behavioural management approach
(B)
Classical management approach
(C)
Contingency management approach
(D)
Political management approach
Which of the following is an intangible asset attached to the reputation of a particular
business?
(A)
Goodwill
(B)
Inventory
(C)
Cost of goods sold
(D)
Non-current assets
Tech Tiles Pty Ltd failed to meet financial obligations to stakeholders. The court appointed
an independent party to manage Tech Tiles' financial situation, without selling off assets.
What is this process?
13
(A)
Liquidation
(B)
Bankruptcy
(C)
Receivership
(D)
Involuntary cessation
A clothing manufacturer decides to segment its market to target 25-40 year old females .
Which element of market segmentation is this strategy based on?
(A)
Behavioural
(B)
Demographic
(C)
Geographic
(D)
Psycho graphic
Page 5
STUDENT NUMBER/NAME: .. .... . ... .... .. ......... .
14
15
16
Which pricing method uses the processes of supply and demand?
(A)
Cost-plus margin
(B)
Competition based pricing
(C)
Market price
(D)
Price skimming
If a business breaks even, which of the following statements applies?
(A)
Total costs equal total revenue
(B)
Total assets equal total liabilities
(C)
Variable costs equal fixed costs
(D)
Total sales equal total revenue
James is a project manager for a building company. He sequences events so tasks can be
completed in the shortest time possible.
Which scheduling strategy is James using?
(A)
Gantt chart
(B)
Critical path analysis
(C)
Supply chain
(D)
Computer aided design
Page 6
STUDENT NUMBER/NAME: . .. ... ...... ...........
Use the following information to answer Questions 17 and 18.
Lily Candles Income Statement - 2017
Sales
Opening stock
Insurance
Advertising
Closing stock
Purchases
Telephone
17
18
19
$100 000
$30 000
$2 000
$1 500
$15 000
$5 000
$1 000
What is Lily's cost of goods sold?
(A)
$10 500
(B)
$20 000
(C)
$45 500
(D)
$85 000
What is Lily's gross profit?
(A)
$10 500
(B)
$45 500
(C)
$80 000
(D)
$154 500
Australian Government intervention in the business environment has been decreased, to
encourage competition.
Which of the following would result from increased competition in the business
environment in Australia?
(A)
Lower prices and decreased consumer choice
(B)
Higher prices and decreased consumer choice
(C)
Higher prices and increased consumer choice
(D)
Lower prices and increased consumer choice
Page 7
...
STUDENT NUMBER/NAME: ....................
20
Sharp Sounds Pty Ltd refuses to honour its warrantees on faulty products.
Which organisation would assist consumers in getting their money back?
(A)
Industry associations
(B)
Australian Securities Exchange
(C)
Australian Securities and Investment Commission
(D)
Australian Competition and Consumer Commission
Page 8
..... .
STUDENT NUMBER/NAME: .... ... . ...............
.. .
Section II
40 marks
Attempt Questions 21-24
Allow about 1 hour for this section
Answer the questions in the spaces provided. These spaces provide guidance for the expected
length of response.
Question 21 (10 marks)
Marks
Business Life Cycle Sales
Sales
Time
(a)
Identify TWO features of the maturity stage of the business life cycle.
(i)
(ii)
Question 21 continues on the next page
Page9
2
STUDENT NUMBER/NAME: .. ... ... .... ..... .. ... . .. .
Question 21 (continued)
(b)
Marks
Describe TWO strategies that may be used in response to challenges faced by a
business in the maturity stage.
4
(i)
(ii)
(c)
Examine TWO factors that contribute to business decline.
(i)
(ii)
End of Question 21
Page 10
4
STUDENT NUMBER/NAME: ........................
Question 22 (10 marks)
..
Marks
Businesses prioritise increased staff involvement in order to improve motivation and
morale.
(a)
Identify TWO benefits of staff involvement within a business .
2
(i)
(ii)
(b)
Describe TWO non-monetary strategies used by a business to motivate staff.
4
(i)
(ii)
(c)
Discuss TWO types of involuntary separation that may occur in a business.
(i)
(ii)
End of Question 22
Page 11
4
STUDENT NUMBER/NAME: .... .....................
Question 23 ( 10 marks)
.
Marks
Franchising is a business model that allows one business to operate under the established
brand of another, to sell its products and/or services for a specified time period.
Franchising can be an alternative to setting up a new business. However, it is important to
carefully consider all your options before buying a franchise and to seek advice.
(a)
Identify TWO economic contributions of small to medium enterprises to the Australian
economy.
2
(i)
(ii)
(b)
Outline TWO sources of information an individual can access for advice about
establishing a small business.
4
(i)
(ii)
(c)
Explain ONE advantage and ONE disadvantage of buying a franchise.
Advantage: ................................. ............................ .......................................... ...................
Disadvantage : ............................................................. ............... ......................... ................
Page 12
4
STUDENT NUMBER/NAME: ................
Question 24 (10 marks)
I Operations
......... .
Marks
managers use a va1iety of approaches to maintain or improve quality.
(a)
What is quality management?
2
(b)
Describe TWO benefits of quality management practices.
4
(i)
(ii)
(c)
Examine TWO quality management approaches that may be used by operations
managers .
(i)
(ii)
Page 13
4
STUDENT NUMBER/NAME: ..............
.. . .. .. .. .. .
Section III
20 marks
Attempt Question 25
Allow about 35 minutes for this section
Answer the question on your own paper or in a writing booklet, if provided.
The expected length of the response is approximately 800 words or six written pages.
In
•
•
•
your answer you will be assessed on how well you:
use your knowledge and the information provided
communicate using relevant business terminology
present a logical, well structured answer to the question in the form of a business report
Question 25 (20 marks)
Mia Grace owns Grace Realty, a real estate business operating since 2001. She employs
5 full-time staff and 7 casual staff. Grace Realty opens 6 days per week. Despite real
estate value increasing, the business has experienced a decline in market share, due to
new competitors. Mia is considering an offer to merge with another real estate, to
increase market share. However, the other real estate operates different systems, opens
7 days per week and has a different workplace culture.
Assume that you have been hired by Grace Realty as a business consultant.
Write a report that addresses EACH of the following:
• Explain TWO external influences on this business.
• Discuss why employees may resist change.
• Recommend strategies to manage change effectively.
End of paper
Page 14