NSW INDEPENDENT TRIAL EXAMS – 2009
BUSINESS STUDIES YR 11 PRELIMINARY EXAMINATION
MARKING GUIDELINES – REVISED VERSION
Section I
D 2
1
11 C 12
B
B
3
13
A
D
4
14
B
C
5
15
C
C
6
16
C
B
7
17
B
A
8
18
A
C
9
19
D
C
Section II
Question 21(a)
Criteria/Suggested answer
Students distinguish between the internal and external business environment. The external
business environment refers to the range of factors that can influence the operation and
performance of a business that the business itself does not have control over. The internal
environment refers to those factors that the business has some degree of control over.
Student correctly defines either the internal or external business environment.
Question 21(b)
Criteria/Suggested answer
Students discuss how economic cycles impact on a business’ employment and profit
levels. They discuss the economic cycle of booms and recessions in relation to
employment and profit. During a boom period, increased economic activity and spending
results in an increase in sales and profits for the business. As demand increases so too
does demand for labour and therefore increases employment levels. During a recession
spending will decrease and therefore result in a fall in demand for a firm’s product. This
will result in reduced profits. The fall in sales and profits will result in the business
reducing its employment levels.
Students correctly discuss either booms or recessions OR outline the cycle’s impact on
profits and employment with no discussion.
Student will identify the impact of either booms OR recessions on profit OR employment
levels.
Question 22(a)
Criteria/Suggested answer
Students identify the point in the business life cycle as the growth phase.
Question 22(b)
Criteria/Suggested answer
Students outline TWO social goals of a business. These may include:
 Providing workers with employment, income and better career paths;
 Providing services to the community, such as education and training or health care;
 Pursuing social justice aims;
 Engaging in more environmentally sensitive production methods;
 Ethical conduct.
Students only outline ONE social goal or list two goals but no outline.
Question 22(c)
Criteria/Suggested answer
Students describes TWO challenges Mia Clothing may face during this stage of the
business life cycle. These may include;
 Ensuring that quality of production is maintained as output grows;
 Developing accounting and financial information systems that provide management
with detailed information about the performance of different aspects of the business;
 Managing cash flow and taking into account the financial requirements involved in the
new line of production;
 Sustaining growth;
 Recruiting new employees and delegating responsibility where necessary.
Question 22(c) continues on the next page
10
20
B
D
Marks
2
1
Marks
3-4
2
1
Marks
1
Marks
2
1
Marks
3-4
NSW Independent Trial Exams 2009 – Business Studies Yr 11 Preliminary Examination: Marking Criteria - Page 1
Question 22(c) continued
Students describe ONE challenge OR list two with no description.
Students list ONE challenge but no description.
2
1
Question 23(a)
Criteria/Suggested answer
Students calculate the value of capital for this business as $55 000.
Marks
1
Question 23(b)
Criteria/Suggested answer
Students identify TWO sources of non-current liabilities for Imogens Homewares Pty Ltd.
These could include:
 Accounts payable,
 Bank overdraft,
 Credit card loans,
 Tax payable.
Students identify ONE source of non-current liabilities.
Question 23(c)
Criteria/Suggested answer
Students distinguish between current and non-current assets. Current assets make up the
working capital of a business and are used to finance its day to day activities whereas noncurrent assets are assets that are not easily convertible to cash or not expected to become
cash within the next year, e.g. fixed assets.
Students provide some information about current or non-current assets.
Question 23(d)
Criteria/Suggested answer
Students discuss the key reasons why managers use financial statements. These may
include:
 To ensure adequate liquidity and solvency;
 To minimise uncertainty and unpredictability;
 For business planning and setting targets;
 To analyse current performance against past data and future scenarios;
 To meet taxation requirements;
 To fulfil duties as manager.
Students list ONE reason managers may use financial statements with no discussion
Question 24(a)
Criteria/Suggested answer
Students identify TWO financial goals that a business may aim to achieve. These may
include:
 Break even,
 Make a profit,
 Increase sales,
 Increase market share,
 Growth and diversification.
Students identify ONE financial goal.
Question 24(b)
Criteria/Suggested answer
Students define budgets as financial plans of the estimated sales, expenses, raw material
needs and other expenses of a business over a certain period. They can be used in the
planning process as it can form the basis of the business’s plan, setting out the role of each
area of the business, how much money is available to be spent and what benchmarks can
be used to measure the performance of the business. Budgets are also used to adjust the
business plan when necessary.
Outlines a reason why budgets may be used in the business plan.
Marks
2
1
Marks
2
1
Marks
2-3
1
Marks
2
1
Marks
2-3
1
NSW Independent Trial Exams 2009 – Business Studies Yr 11 Preliminary Examination: Marking Criteria - Page 2
Question 24(c)
Criteria/Suggested answer
Students outline TWO elements included in a SWOT analysis. These can be TWO of the
following:
 Strengths – are the advantages the business has that will help it succeed. They are the
things that the business does better than its competitors.
 Weaknesses – are the problems that the business needs to overcome so it can maximise
its potential. They are those things that the business does not do as well as its
competition.
 Opportunities – are the characteristics of the marketplace that will have positive flow
on effects for the firm if they are exploited.
 Threats – are aspects of the marketplace that are potentially or currently having an
adverse effect upon the business. Threats need to be addressed so that the business can
maximise its potential.
Students give an example in their outline of the element chosen.
Students outline One element of SWOT OR they identify two but no outline is given.
Student identifies ONE of the elements of SWOT.
Question 25(a)
Criteria/Suggested answer
Students identify TWO advantages associated with establishing a new business. These
may include:
 Business owner has greater control over all the key business decisions;
 Business is starting from scratch so there is no possible repercussions from previous
bad decisions, unhappy staff, existing perceptions in the marketplace or outdated
business structures;
 Increase in value of business if successful;
 Personal satisfaction of starting from scratch.
Identifies ONE advantage associated with establishing a new business.
Question 25(b)
Criteria/Suggested answer
Students identify TWO factors Olivia needs to consider when deciding on the location for
her café. These may include:
 Visibility,
 Cost,
 Proximity to suppliers,
 Customers,
 Support services.
Students identify ONE factor Olivia needs to consider when deciding on the location for
her café.
Question 25(c)
Criteria/Suggested answer
Students distinguish between debt and equity finance. Debt is money which is borrowed
and must be repaid with interest and equity refers to the owners own money, which is not
repaid but invested into the business.
Students define EITHER debt or equity finance.
Question 25(d)
Criteria/Suggested answer
Students describe ONE cost and ONE benefit associated with using debt finance. An
example of the cost associated with debt financing is the interest that must be repaid. An
example of the benefit of debt financing is that it is finite and the debt will be payed down
over time to a zero sum balance without any further obligation to the lender.
Students describe ONE cost OR One benefit associated with using debt fiancé OR they list
a cost and benefit but offer no description.
Marks
3-4
2
1
Marks
2
1
Marks
2
1
Marks
2
1
Marks
3-4
1-2
NSW Independent Trial Exams 2009 – Business Studies Yr 11 Preliminary Examination: Marking Criteria - Page 3
Section III
Question 26
Criteria/Suggested answer
 Presents a sustained, logical and well-structured business report and clearly
communicates using features of a business report with appropriate business
terminology and concepts.
 Sketches in general terms all 4 components of the HR cycle
 Provides detailed reasons in favour of TWO appropriate marketing strategies
 Makes a judgement based on criteria of TWO critical issues that need to be addressed
by the business
 Presents a well-organised business report and uses appropriate business terminology
and concepts.
 Sketches in general terms all 4 components of the HR cycle
 Provides characteristics and features of TWO appropriate marketing strategies
 Attempts to make a judgement based on criteria of TWO critical issues that need to be
addressed by the business
 Includes features of a business report and uses some business terminology and
concepts
 Sketches in general terms 3-4 of 4 components of HR cycle
 Sketches in general terms TWO marketing strategies
 Provides characteristics and features of TWO critical issues that need to be addressed
by the business
 Includes some features of a business report and uses basic business terminology
 Identifies/outlines some features of the HR cycle
 Refers to ONE/TWO marketing strategies
 May mention some critical issues which may assist in achieving success.





Uses basic business terminology /does not write in an appropriate business format.
May refer to HR cycle
May refer to marketing strategies
May refer to critical issues
Uses basic business terminology.
Marks
17 - 20
13 - 16
9 - 12
5-8
1-4
Students should address the following in the report:
1. Outline the HR cycle for P&Z Tough Build
 Acquisition - recruitment
 Development - training
 Maintenance - rewards
 Separation - involuntary and voluntary
2. Recommend TWO sources marketing strategies that can be used by P & Z Tough Build to maintain
competitive advantage:
 Product – branding, positioning, packaging, warranties
 Pricing – strategies
 Promotion – advertising, personal selling, direct selling, publicity
 Placement – distribution – intensive, selective and exclusive
3. Evaluate TWO critical issues that must be addressed to assist the owners in achieving success.
Students evaluate TWO critical issues that must be addressed to assist the owners in achieving success.
 Having a business plan;
 Identifying and sustaining a competitive advantage;
 Avoiding over extension of financing and other resources;
 Using technology;
 Managing case flow.
NSW Independent Trial Exams 2009 – Business Studies Yr 11 Preliminary Examination: Marking Criteria - Page 4
NSW Independent Trial Exams 2009 – Business Studies Yr 11 Preliminary Examination: Marking Criteria - Page 5
NSW INDEPENDENT TRIAL EXAMS – 2009
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)
Content
Nature of business – coordinating the business
Key business functions – coordinating business functions
Establishing a business – key considerations in setting up a business
Developing a business plan – forecasting
Nature of business – types of business entities
Key business functions - employment relations
Developing a business plan - elements of a business plan
Key business functions – marketing
Nature of business- business environment and its impact on business
Developing a business plan – business planning process
Establishing a business – critical issues in business success/failure
Developing a business plan
Nature of business – business environment and its impact on business.
Key business functions – accounting and finance
Key business functions – operations
Developing a business plan – types and purposes
Key business functions – accounting and finance
Establishing a business – tax and on costs
Key business functions – rostering and scheduling
Establishing a business – key considerations in setting up a business
Nature of business – the interdependence of business and its environment
22(a)
22(b)
22(c)
23(a)
23(b)
23(c)
23(d)
Nature of business - business life cycle
Nature of business – business goals
Nature of business – business life cycle
Key business functions – accounting and finance
Key business functions – accounting and finance
Key business functions – accounting and finance
Key business functions – accounting and finance – key uses of financial
statements
Nature of business – business goals
Developing a business plan - the business planning process – forecasting
Developing a business plan - the business planning process - sources of
planning ideas from internal and external business environments
Establishing a business – key considerations in setting up a business –
establishment options
Establishing a business - key considerations in setting up a businesslocation
Establishing a business - key considerations in setting up a businesscapital
Establishing a business - key considerations in setting up a businesscapital
Nature of business
 Classification of business
Key business functions.
 Sources and uses of funds – debt, equity
Establishing a business
 Critical issues in business success and failure
24(a)
24(b)
24(c)
25(a)
25(b)
25(c)
25(d)
26
Nature of business – economic and social factors
Outcomes
P1.1
P2.2
P4.2
P2.3
P1.2
P2.1, P5.1
P5.1
P2.1
P3.2
P2.1
P4.2, P5.1
P2.3
P1.2
P5.6
P2.1, P5.1
P2.1
P5.6
P4.2
P5.1
P4.2, P5.1
P1.1
P4.1, P5.3
Band
2-3
2-3
3-4
3-4
3-4
3-4
4-6
3-4
3-4
4-6
3-5
3-5
2-4
3-6
4-6
3-4
4-6
4-6
4-6
3-5
2-3
2-5
P3.1
P1.1
P3.1, P5.3
P5.6
P5.1
P5.1
P2.1, P5.3
2-3
2-4
4-6
3-4
3-4
3-4
4-6
P1.1
P2.1, P2.3
P2.3, P5.3
2-3
3-5
4-6
P5.1
2-3
P4.1
4-5
P2.1, P5.1
3-5
P2.1, P5.1, P5.3
4-6
P1.1, P1.2, P2.2,
P4.1, P5.1, P5.3
3-6
NSW Independent Trial Exams 2009 – Business Studies Yr 11 Preliminary Examination: Marking Criteria - Page 6