AUSTRALIAN INTERNATIONAL SCHOOL SINGAPORE 2009
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PRELIMINARY Student
BUSINESSName:
STUDIES
HALF-YEARLY EXAMINATION
Teacher: C Campbell-Pegg OR L Tadic
AUSTRALIAN INTERNATIONAL SCHOOL SINGAPORE
Business Studies - Preliminary
2009 HALF YEARLY EXAMINATION
Total marks – 75
Monday, 11th May 2009
Start time: 8:30am
General Instructions
 Reading time – 5 minutes
 Working time – 1½ hours
 Write using BLACK or BLUE pen
 Board approved calculators may
be used
 Write your Student Name and
CLASS at the top of every page.
Section I
Pages 2 - 8
Total Marks (20) - Multiple Choice
 Attempt Question 1 - 20
 Allow about 25 minutes for this section
Section II
Pages 9 - 17
Total Marks (55) - Short Answers
 Attempt Questions 21 - 25
 Allow about 55 minutes for this section
Page 1
AUSTRALIAN INTERNATIONAL SCHOOL SINGAPORE
PRELIMINARY BUSINESS STUDIES HALF-YEARLY EXAMINATION
2009
SECTION I: MULTIPLE CHOICE
20 marks
Attempt Questions 1–20
Allow about 25 minutes for this section
Use the multiple-choice answer sheet for Questions 1–20.
1.
2.
What would be a feature of involuntary business cessation?
(A)
The owner has retired
(B)
The owner has lost enthusiasm and their ideas
(C)
The business has been placed in receivership
(D)
The business has been sold
Bill’s Bedroom Warehouse is offering 40% off all products, however in their
advertisement they have failed to disclose consumers must spend $200 to
obtain this discount. Which stakeholders are directly impacted by this:
(A)
Managers
(B) Government
(C) Consumers
(D) Owners
3.
A niche market is best described as:
(A) Fragmented parts of the mass market
(B) The breaking down of a market into smaller segments so that particular
groups with certain characteristics are being targeted by a business
(C) A market which offers a business an opportunity for future growth and
expansion
(D) The mass market
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AUSTRALIAN INTERNATIONAL SCHOOL SINGAPORE
PRELIMINARY BUSINESS STUDIES HALF-YEARLY EXAMINATION
4.
2009
“AJ and Sons PTY LTD guarantees to deliver the best possible service to their
customers”
Which of the following best describes what can be learned about this business
from this statement?
5.
(A)
It is a partnership and this statement is its mission statement
(B)
It is a partnership and this statement shows its social goals
(C)
It is a private company and this statement is its mission statement
(D)
It is a public company and this statement shows its social goals
Which of the following businesses are included in the private sector?
(A)
All businesses not included in the public sector
(B) Any business operating for profit
(C) Businesses not listed on the stock exchange
(D) Only businesses that do not sell to the general public
6.
A business has decided to pursue a number of goals. Which of the strategies
outlined below would represent a social goal?
(A)
To improve the training and development opportunities for employees
(B)
To increase market share by 15 per cent
(C)
To provide shareholders with increased returns
(D)
To reduce the amount of plastic bags used by consumers
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AUSTRALIAN INTERNATIONAL SCHOOL SINGAPORE
PRELIMINARY BUSINESS STUDIES HALF-YEARLY EXAMINATION
7.
2009
Which of the following are characteristics of a sole trader?
(A)
Unlimited liability, ownership by one person, incorporated, management
freedom
(B)
Unlimited liability, ownership by one person, unincorporated, management
freedom
(C)
Limited liability, ownership by one person, unincorporated, management
freedom
(D)
Limited liability, ownership by one person, incorporated, specialization
of tasks
8.
9.
How does the trend towards outsourcing impact on small business?
(A)
Enables larger businesses to focus on their core function
(B)
Decreases the cost of production for large businesses
(C)
Increases opportunities for SME’s to provide services to large businesses
(D)
Enables SME’s to provide niche products
Which of the following changes comes from the internal environment of a
business?
(A)
A change in the level of goods and service tax (GST)
(B)
A change in Occupational Health and Safety (OH&S) legislation
(C)
A change in the number of competitors in the market
(D)
A change in the managerial system
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AUSTRALIAN INTERNATIONAL SCHOOL SINGAPORE
PRELIMINARY BUSINESS STUDIES HALF-YEARLY EXAMINATION
10.
2009
Which of the following is an example of a capital input into a business’s
production of T-Shirts
11.
(A)
cotton
(B)
skilled machinist
(C)
sewing machine
(D)
manager
In a SWOT analysis which of the following would be considered by the
business to be a weakness?
12.
(A)
Poor customer relations
(B)
Slow market growth
(C)
Experienced managers
(D)
Entry of new competitors
Which of the following outlines characteristics of a recession period of an
economy?
(A) Low levels of consumer confidence, increase in unemployment and
increase interest rates
(B) Increase in employment, consumer spending and wage rises likely
(C) High levels of unemployment, high levels of consumer spending and
increase in inflation
(D) Increase in unemployment, consumer spending decreases and low
levels of consumer confidence
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AUSTRALIAN INTERNATIONAL SCHOOL SINGAPORE
PRELIMINARY BUSINESS STUDIES HALF-YEARLY EXAMINATION
13.
14.
2009
The market share of a company refers to its:
(A)
Total sales volume
(B)
Estimated share of the likely profits
(C)
Share of the total industry profits
(D)
The business’s share of the total industry sales
In which of the following industrial sectors would a bed and breakfast guest
house belong?
15.
(A)
Secondary
(B)
Tertiary
(C)
Quaternary
(D)
Quinary
Changes to the tastes, age structure, marital status and ethnicity of a
population can all influence the operation of a business. These factors can all
be considered elements of:
(A)
The internal business environment of a business
(B)
The legal structure of the business
(C)
The external business environment of the business
(D)
The life cycle of a business
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AUSTRALIAN INTERNATIONAL SCHOOL SINGAPORE
PRELIMINARY BUSINESS STUDIES HALF-YEARLY EXAMINATION
16.
17
2009
Strategic planning is most important to a small business because it:
(A)
Allows greater cash flow to be put into the business
(B)
Enables action plans to be compared to past performance
(C)
Enables action plans to guide the business for future growth
(D)
Highlights the managerial expertise of the manager
Increasingly newly established small businesses are purchasing services,
such as accounting and marketing, from other businesses specialising in that
function. This is known as:
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(A)
Outsourcing
(B)
Franchising
(C)
Factoring
(D)
Patents
A decision is made by Buildsafe Ltd to remove asbestos* from their
production site. This removal however has increased the cost of the finished
item. Which stakeholder would be happy with this decision?
(A)
Employees
(B)
Shareholders
(C)
Consumers
(D)
Society
*Note: Asbestos is a building material that has been known to cause death
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AUSTRALIAN INTERNATIONAL SCHOOL SINGAPORE
PRELIMINARY BUSINESS STUDIES HALF-YEARLY EXAMINATION
19
20
2009
Which of the following applies to transnational businesses?
(A)
Operates in all states of one country
(B)
Ownership, operations and sales in many countries
(C)
Operations restricted to a single country
(D)
Ownership and production is based in one country, but exports overseas
An executive summary is:
(A)
A written statement for the executives which outlines the organizational
goals and objectives
(B)
A written statement for the executives outlining the purpose of a business
report and the key recommendations
(C) The annual report by the executives which summarises the performances
of a business
(D)
A plan of the strategies a business will implement to achieve its goals
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AUSTRALIAN INTERNATIONAL SCHOOL SINGAPORE
PRELIMINARY BUSINESS STUDIES HALF-YEARLY EXAMINATION
2009
SECTION II: SHORT ANSWERS
Total Marks (55)
Attempt Questions 21 – 25
Allow about 55 minutes for this section
Answer each question in the spaces provided.
Question 21 (12 marks)
Marks
Jim has had some experience in installing fences by working with a
tradesman on Saturdays. Since leaving school, he decided to set up his
own ‘Everlast Fencing’ business. He now employs two other people on
full time, and one on a casual basis, in order to keep up with demand.
a)
2
Identify the FOUR stages of the Business Life Cycle.
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b)
Referring to the business ‘Everlast Fencing’, identify its current stage in the
Business Life Cycle and describe TWO characteristics of this stage.
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AUSTRALIAN INTERNATIONAL SCHOOL SINGAPORE
PRELIMINARY BUSINESS STUDIES HALF-YEARLY EXAMINATION
2009
Question 21 (continued)
c)
Identify and analyse TWO challenges that ‘Everlast Fencing’ might face at
this particular stage of the Business Life Cycle.
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End of Question 21
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AUSTRALIAN INTERNATIONAL SCHOOL SINGAPORE
PRELIMINARY BUSINESS STUDIES HALF-YEARLY EXAMINATION
2009
Questions 22 (8 marks)
a)
Identify FOUR factors which influence consumer demands. Provide a
current example for each factor.
4
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4
b)
Explain why it is important that businesses respond to changing consumer
demands.
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End of Question 22
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AUSTRALIAN INTERNATIONAL SCHOOL SINGAPORE
PRELIMINARY BUSINESS STUDIES HALF-YEARLY EXAMINATION
2009
Question 23 (10 marks)
Marks
“Small to medium businesses are the backbone of the Australian economy”
a)
Define small to medium enterprises.
2
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b)
Identify and describe TWO significant contributions small to medium
4
enterprises make to the Australian economy.
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AUSTRALIAN INTERNATIONAL SCHOOL SINGAPORE
PRELIMINARY BUSINESS STUDIES HALF-YEARLY EXAMINATION
2009
Question 23 (continued)
c)
Identify and explain TWO reasons businesses experience failure.
4
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End of Question 23
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AUSTRALIAN INTERNATIONAL SCHOOL SINGAPORE
PRELIMINARY BUSINESS STUDIES HALF-YEARLY EXAMINATION
2009
Question 24 (5 marks)
Marks
Ella, an award winning furniture maker, started a new business 2
years ago, making hand crafted beds. She uses only plantation timber
to help save the forests. She also provides part-time jobs for the long
term unemployment. Ella’s business principles have helped her
business grow quickly.
a)
Identify ONE internal and ONE external stakeholder of this business.
1
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b)
Describe the responsibilities that this business has to each of these TWO
stakeholders.
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AUSTRALIAN INTERNATIONAL SCHOOL SINGAPORE
PRELIMINARY BUSINESS STUDIES HALF-YEARLY EXAMINATION
2009
End of Question 24
Question 25 (20 marks)
Marks
Greta is an architect who has been working for a large company since
she left university. She now feels that she has enough experience to
establish her own business. Giovanni is a colleague at the company
where Greta has been working and has indicated that he would like to
form a partnership with her.
Greta is not sure that forming a partnership is a good idea. She was
looking forward to the independence associated with operating as a
sole trader, but knows that she has only saved $5,000 and feels that
establishing a business would cost at least $25,000.
a)
Define a partnership.
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b)
Describe ONE advantage and ONE disadvantage of a partnership.
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AUSTRALIAN INTERNATIONAL SCHOOL SINGAPORE
PRELIMINARY BUSINESS STUDIES HALF-YEARLY EXAMINATION
2009
Question 25 (continued)
c)
Greta and Giovanni have been advised that establishing a private company
would be a better option than a partnership. Propose and justify which
option would be more appropriate. Include liability, finance and legal
structure in your answer.
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AUSTRALIAN INTERNATIONAL SCHOOL SINGAPORE
PRELIMINARY BUSINESS STUDIES HALF-YEARLY EXAMINATION
d)
2009
After three years of successful trading, Greta and Giovanni decide to
expand. Evaluate TWO options they should consider when planning
expansion. In your answer consider the legal structure and finance.
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AUSTRALIAN INTERNATIONAL SCHOOL SINGAPORE
PRELIMINARY BUSINESS STUDIES HALF-YEARLY EXAMINATION
2009
End of Question 25
End of Paper
Page 18