Name: School: SAMPLE EXAM ONLY 1 Level 1 Business Studies 90839: Apply business knowledge to an operational problem(s) in a given small business context Credits: Four Check that you have entered your name and school in the box at the top of this page. You should answer ALL parts of ALL questions in this booklet. Use evidence from the given context to support your answers and refer to relevant business knowledge and/or Māori business concepts in your answers. Pull out the resource booklet for Business Studies 1.3 from the centre of this booklet. If you need more space for any answer, use the page(s) provided at the back of this booklet and clearly number the question. Check that this booklet has pages 2–9 in the correct order and that none of these pages is blank. YOU MUST HAND THIS BOOKLET TO YOUR TEACHER AT THE END OF THE ALLOTTED TIME. For Assessor’s use only Achievement Apply business knowledge to an operational problem(s) in a given small business context. Achievement Criteria Achievement with Merit Apply detailed business knowledge to an operational problem(s) in a given small business context. Achievement with Excellence Apply comprehensive business knowledge to an operational problem(s) in a given small business context. Overall Level of Performance © New Zealand Qualifications Authority, 2010 All rights reserved. No part of this publication may be reproduced by any means without the prior permission of the New Zealand Qualifications Authority. 2 You are advised to spend 60 minutes answering the questions in this booklet. Read ALL of the resources in the resource booklet for Business Studies 1.3 before you begin answering the questions in this booklet. QUESTION ONE: A CASH FLOW PROBLEM Use the information in Resources A and B of the resource booklet and your business knowledge to complete the following tasks. Trek Trav has a cash flow problem that is affecting the daily operations of the business. (a) (b) (i) Define the business term cash flow. (ii) Describe ONE effect the cash flow problem will have on Trek Trav in the long-term. Discuss ONE cause of the cash flow problem that Trek Trav faces. In your answer you should: describe a factor, issue, or situation that helped cause the cash flow problem explain how it contributed to the cash flow problem. Business Studies 90839 Assessor’s use only 3 (c) Discuss the best solution for Trek Trav that would deal with the cause you wrote about in part (b). In your answer, you should: identify at least TWO appropriate solutions choose the best solution and explain how it would deal with the cause explain why it would be a better solution than ONE other solution. Business Studies 90839 Assessor’s use only 4 QUESTION TWO: MARKET PLACE CHANGES Use the information in Resource D of the resource booklet and your business knowledge to complete the following tasks. Changing demographics in the city of Lakeside will create a problem for Trek Trav in the future as its target market will change. (a) (b) (i) Describe what is meant by the term demographics. (ii) Describe ONE trend shown by the Lakeside demographics that will be important for Trek Trav. Discuss how the demographic trend you described in part (a) (ii) will create a long-term problem for Trek Trav. In your answer, you should: describe the long-term problem explain how the trend would cause the long-term problem. Business Studies 90839 Assessor’s use only 5 (c) Discuss the best solution for Trek Trav that would deal with the long-term problem you wrote about in part (b). In your answer, you should: identify at least TWO appropriate solutions choose the best solution and explain how it would solve the problem explain why it would be a better solution that ONE other solution. Business Studies 90839 Assessor’s use only 6 QUESTION THREE: AN ‘ACT OF GOD’ Use the information in Resource C of the resource booklet and your business knowledge to complete the following tasks. A tropical disease has spread to one of the resort islands used by Trek Trav. The New Zealand government issued a warning to tourists advising them not to visit that island. The outbreak of the tropical disease is considered to be an ‘act of God’ by the travel industry. (a) (b) (i) Describe what is meant by an ‘act of God’ in relation to business. (ii) Describe how Trek Trav OR its clients might respond to the government’s advice. Discuss why the outbreak of the tropical disease is likely to create a booking problem for Trek Trav. In your answer, you should: describe the booking problem explain why the tropical disease is likely to cause the booking problem. Business Studies 90839 Assessor’s use only 7 (c) Discuss the best solution for Trek Trav to resolve this booking problem. In your answer, you should: identify at least TWO appropriate solutions choose the best solution and explain how it would resolve the problem explain why it would be a better solution than ONE other solution. Business Studies 90839 Assessor’s use only 8 Extra paper for continuing your answers, if required. Clearly number the question. Question number Business Studies 90839 Assessor’s use only 9 Extra paper for continuing your answers, if required. Clearly number the question. Question number Business Studies 90839 Assessor’s use only