NSW INDEPENDENT TRIAL EXAMS – 2010
BUSINESS STUDIES YR 11 PRELIMINARY EXAMINATION
MARKING GUIDELINES
Section I
1
11
D
D
2
12
C
B
3
13
B
C
4
14
A
A
5
15
D
C
6
16
A
B
7
17
B
D
8
18
C
D
9
19
A
C
10
20
C
B
Section II
Question 21(a)
Criteria/
 Students identify ONE social and ONE economic role of business.
 Student identify ONE social OR ONE economic role of business.
Answers may include:
 Wealth creation (economic)
 Employment (economic/social)
 Innovation (economic)
 Quality of life (economic/social)
 Choice (social)
 Entrepreneurship (economic)
Marks
2
1
Question 21(b)
Criteria
Marks
3–4
 Students distinguish between unincorporated and incorporated enterprises and give
ONE example of each.
2
 Students distinguish between unincorporated and incorporated enterprises with no
correct examples OR they correctly define ONE term and give ONE correct example.
1
 Students define unincorporated OR incorporated enterprises.
Answers may include: An unincorporated enterprise refers to those businesses that have no legal separation
between the business and its owners who have complete legal responsibility and liability for its actions.
Examples include sole traders, partnerships or limited partnerships. Incorporated enterprises are those
businesses that have a separate legal entity that is officially registered as a company. It is a legal entity in its
own right distinct from its owners. Examples include private companies, public companies, trusts or
cooperatives.
Question 22(a)
Criteria
Marks
2
 Students distinguish between a mission statement and a vision statement.
1
 Students correctly define either a mission or a vision statement.
Answers may include: A vision statement is specifically looking at what the businesses would like to achieve
in future. A mission statement defines the main purpose and goals of a business. It will convey the distinctive
character of the business and differentiate it from its competitors. The mission statement aims to set out how
the vision will be achieved. More focused on the present.
Question 22(b)
Criteria
Marks
3–4
 Students discuss how TWO forecasting tools may be used by management to create
specific targets for the business.
2
 Students identify TWO forecasting tools OR they discuss how ONE forecasting tool
may be used by management to create specific targets for the business.
1
 Students identify ONE forecasting tool.
Answers may include:
 Break-even analysis – which may be used by management to set targets which determine how much a
business will need to sell to meet make a profit. They may set a target aiming at a particular profit level.
 Budgets – this is a financial plan which may be used by management setting out expected incomes and
outlays. This may be used to set specific targets by establishing the strategies a business will use to
achieve its goals.
NSW Independent Trial Exams 2010 – Business Studies Yr 11 Preliminary Examination: Marking Criteria - Page 1
Question 23(a)
Criteria
Marks
2
 Students outline the importance of market research for a business.
1
 Students makes mention of target market with limited outline of importance of market
research.
Answers may include: Market research is essential in allowing a business to identify its target market and
develop an understanding what customers actually want and anticipate any changes in the market to cater for
changing customer demands.
Question 23(b)
Criteria
Marks
2
 Students identify TWO factors which may be used by a business to identify its target
market.
1
 Students identify ONE factor which may be used by a business to identify its target
market.
Answers may include:
 Demographic factors – characteristics of the population including age, sex, education or income
 Geographical factors – knowing where a customer makes purchase decisions
 Psychographic factors – understanding why a customer buys different products and services may include
looking at lifestyle characteristics, including the personality types of consumers and their perceived social
class
 Behavioural factors – understanding how a customer makes decisions and are concerned with the
motivation behind a customer’s decision to buy a particular product
Question 23(c)
Criteria
Marks
3–4
 Students discuss TWO promotional strategies a business may use within its marketing
mix.
2
 Students discuss ONE promotional strategy a business may use within its marketing
mix OR they identify TWO strategies.
1
 Students identify ONE promotional strategy.
Answers may include:
 Advertising
 The media (television, radio, internet or print)
 Sponsorships
 Loyalty cards and special privileges for frequent users
 Joint promotion with other businesses
 Free sample hand-outs to promote products
 Personal selling
 Product displays in shop fronts
 Public relations activities such as media releases, annual reports; conferences may also be used to
promote products and services
Question 24(a)
Criteria
 Students correctly calculate gross profit and net profit
 Students correctly calculate gross profit OR net profit
Answers: Gross profit = $185 000; net profit = $52 000
Marks
2
1
Question 24(b)
Criteria
Marks
2
 Students correctly distinguish between a balance sheet and a profit and loss statement.
1
 Students correctly define a balance sheet OR profit and loss statement.
Answers may include:
 A balance sheet describes the financial position of a business at a particular point in time, summarising
the type and amount and types of assets, liabilities and equity.
 A profit and loss statement provides a record of the performance of a business over an accounting period
and establishes the firm’s profit or loss by recording revenue and expenses incurred over a specific period
of time.
NSW Independent Trial Exams 2010 – Business Studies Yr 11 Preliminary Examination: Marking Criteria - Page 2
Question 24(c)
Criteria
Marks
2
 Students account for the change in net profit between 2008 and 2009.
1
 Students identify the change in net profit but provide no reason for it.
Answers may include: There was decrease in net profit from $58 000 in 2008 to $52 000 in 2009. This can be
a result of:
 Decrease in gross profit
 Increase in expenses
Students may make reference to specific expenses that may have increased.
Question 24(d)
Criteria
Marks
3–4
 Students explain how the marking plan can result in improved net profit levels.
2
 Students outline how marketing may result in improved profit levels.
1
 Students make a statement about the how marketing may result in improved profit
levels.
Answers may include:
 A marketing plan may be used to improve the profitability levels of the business by addressing any of the
4 Ps of marketing.
 Target market can be identified and marketing strategies altered to make the product more attractive to
the target market.
 The price must be accessible to the target market.
 Promotional strategies may be used to encourage sales by making consumers aware of the product’s
features and how it compares to competitors products.
 May need to spend more on marketing to ensure the product is positioned correctly in the marketplace.
 Place – may need to look at how the product is being distributed.
Students need to link their discussion to improving profitability.
Question 25(a)
Criteria
 Students identify TWO personal qualities that a new business owner needs to increase
their chance of success.
 Students identify ONE personal quality that a new business owner needs to increase
their chance of success.
Answers may include:
 Motivation
 Experience
 A good sense of judgment
 Good communication skills
Marks
2
1
Question 25(b)
Criteria
Marks
3–4
 Students describe TWO sources of finance available to small business owners to
finance their business.
2
 Students describe ONE source of finance available to small business owners to finance
their business OR they identify TWO sources.
1
 Students identify ONE source of finance available to small business owners.
Answers may include:
 Debt finance – short term, long term finance such as overdrafts or loans
 Equity finance – funding from those who either have a shareholding in the business or own the business.
Can also be raised by selling more shares in the business
 Leasing this source allows a business to use equipment without paying for them outright. Leasing major
capital purchases gives tax deductions to the business and allows them to use their money for other things
NSW Independent Trial Exams 2010 – Business Studies Yr 11 Preliminary Examination: Marking Criteria - Page 3
Question 25(c)
Criteria
Marks
3–4
 Students discuss TWO strategies a business may implement in order to achieve a
competitive advantage.
2
 Students discuss ONE strategy a business may implement in order to achieve a
competitive advantage OR they identify two strategies.
1
 Students identify ONE strategy which may be used.
Answers may include: Students can discuss how any ONE of the following can be implemented as a strategy
to achieve a competitive advantage:
 Lowest prices
 Customer service
 Quality
 Image
 Experienced staff
 Advertising
 Using latest technology
Section III
Question 26
Criteria
 Presents a sustained, logical and well-structured business report that provides a
comprehensive outline of the financial and social goals of a business
 Provides a comprehensive discussion of THREE challenges for the business operations
during the growth stage of the business life cycle
 Provides a thorough evaluation of the process of hiring new employees, training and
developing them as part of the human resource cycle
 Extensively uses relevant business terminology and concepts in appropriate forms
 Presents a well organised and well-structured business report that provides a thorough
outline of the financial and social goals of a business
 Provides a detailed discussion of THREE challenges for the business operations during
the growth stage of the business life cycle
 Provides a detailed evaluation of the process of hiring new employees, training and
developing them as part of the human resource cycle
 Substantially uses relevant business terminology and concepts in appropriate forms
 Presents a business report that provides some outline of the financial and social goals
of a business
 Mentions some challenges for the business operations during the growth stage of the
business life cycle
 Provides some outline acquisition and training and development as part of the human
resource cycle
 Satisfactorily uses relevant business terminology and concepts in appropriate forms
 Presents a business report that provides a limited outline of the financial and social
goals of a business
 Lists a challenge a business may face at the growth stage of the business life cycle
 May make mention of process of acquisition and/or training and development
 Uses basic business terminology and concepts in appropriate forms
 Identifies a financial and/or social goal of a business
 May refer to a challenge a business may face at the growth stage of the business life
cycle
 Uses basic business terminology
 Does not write in an appropriate business format
Marks
17 – 20
13 – 16
9 – 12
5–8
1–4
Question 26 continues on the next page
NSW Independent Trial Exams 2010 – Business Studies Yr 11 Preliminary Examination: Marking Criteria - Page 4
Question 26 continued
Students should address the following in the report:
Students outline the financial and social goals of a business. This may include:
 Financial:
o Breaking even
o Making a profit
o Increase product sales and market shares
o Growth and diversification
 Social:
o Providing workers with employment, income and better career paths
o Providing services to the community, such as education and training or health care
o Pursuing social justice aims, such as improving employment opportunities for those groups in the
community that are disadvantaged
o Engaging in more environmentally sensitive production goods and services that do not contribute to
environmental damage
Discuss THREE challenges the business operations may encounter during the growth stage of the business
life cycle. These may include:
 Ensuring the quality of service or production is maintained as output grows
 Developing accounting and financial information systems that provide management with detailed
information about the performance of the different aspects of the business
 Managing cash flow and taking into account the financial requirements involved in expanding the
business
 Taking the opportunity of improving economies of scale associated with the increased production levels
 Sustaining growth and not letting the success of the business create a sense of self satisfaction or laziness
 Recruiting new employees as they are needed and delegating tasks
 Redefining the role of management so they are not overwhelmed with the increased workload
Evaluate the importance of the human resource cycle when hiring new employees, and the benefits to
business from training and developing their human resources.
Students make a judgement on the value of the human resource cycle. Students identify the components of
the cycle including:
 Acquisition
 Development
 Maintenance
 Separation
Students examine each component and evaluate the importance of each step to lead toward:
 The hiring of the right employees
 Tailoring staff requirements to company needs
 Accessing training which benefits the company
 Offering incentives to maintain staff
 Managing records for staff development
NSW Independent Trial Exams 2010 – Business Studies Yr 11 Preliminary Examination: Marking Criteria - Page 5
NSW INDEPENDENT TRIAL EXAMS – 2010
BUSINESS STUDIES YR 11 PRELIMINARY EXAMINATION
MAPPING GRID
Qu
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21(a)
21(b)
22(a)
22(b)
23(a)
23(b)
23(c)
24(a)
24(b)
24(c)
24(d)
25(a)
25(b)
25(c)
26
Content
Nature of business – the importance of business
Key business functions – coordinating business functions
Key business functions – marketing
Establishing a business – key considerations in setting up a business –
capital
Developing a business plan-elements of a business plan
Establishing a business – key considerations in setting up a business –
legal
Key business functions – identification of the target market
Nature of business – types of business entity
Developing a business plan – the business planning process – SWOT
Developing a business plan – the role of a business plan
Nature of business – business environment and its impact on business
Key business functions – operations: manufacturing/services
Nature of business – the business environment and its impact on
business
Key business functions – overview of marketing mix
Key business functions – accounting and finance
Establishing a business – outsourcing
Developing a business plan – forecasting
Nature of business – importance of business
Establishing a business – critical issues in business success and failure
Developing a business plan – types of control
Nature of business – the importance of business
Nature of business – types of business entity
Developing a business plan – business planning process
Developing a business plan – forecasting
Key business functions – marketing
Key business functions – identification of target market
Key business functions – marketing mix
Key business functions – accounting and finance
Key business functions – accounting and finance
Key business functions – accounting and finance
Key business functions – marketing
Establishing a business – key personal features in establishing a
business
Establishing a business – key considerations in setting up a business –
capital
Establishing a business – identifying and sustaining competitive
advantage
Nature of business:
 The importance of business
 Business life cycle
Key business functions:
 Employment relations – human resource cycle.
Outcomes
P1.1
P2.1
P2.1
P5.1
Band
2-3
2-3
3-4
3-4
P2.2
P5.1
3-4
3-4
P2.1
P1.2
P4.2
P2.1
P4.1
P2.2
P4.1
3-4
3-4
4-6
3-4
3-5
3-4
4-6
P5.1
P5.6
P2.1
P5.6
P1.1
P4.2
P2.1, P5.3
P1.1
P1.2
P2.2
P2.2, P2.3
P2.1
P2.1, P5.1
P2.1, P5.1
P5.6
P2.1, P5.1
P5.1
P2.1, P5.1
P2.1
3-6
4-6
3-4
4-6
4-6
3-5
4-6
2-3
2-5
2-4
2-4
3-4
3-4
4-6
4-6
3-5
4-6
4-6
2-3
P2.1, P5.1
3-5
P4.1, P5.1
4-6
P1.1, P3.1 P2.2,
P5.1, P5.3, P5.5
3-6
NSW Independent Trial Exams 2010 – Business Studies Yr 11 Preliminary Examination: Marking Criteria - Page 6