2011
Higher School Certificate
Trial Examination
Business Studies
Total marks – 100
Section I – Pages 2–8
20 marks
Attempt Questions 1–20
Allow about 35 minutes for this section
General Instructions

Reading time – 5 minutes

Working time – 3 hours

Board approved calculators may be used

Write using black or blue pen

Write your student number and/or name
at the top of every page
Section II – Pages 9–15
40 marks
Attempt Questions 21–25
Allow about 1 hour and 15 minutes for this
section
Section III – Page 16
20 marks
Attempt Question 26
Allow about 35 minutes for this section
Section IV – Page 17
20 marks
Attempt either Question 27 OR Question 28
Allow about 35 minutes for this section
This paper MUST NOT be removed from the examination room
STUDENT NUMBER/NAME:…………………..….
STUDENT NUMBER/NAME: ……………………..
Section I
20 marks
Attempt Questions 1–20
Allow about 35 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
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2
3
4
5
6
7
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9
10
11
12
13
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19
20
Page 2
C
D
STUDENT NUMBER/NAME: ……………………..
1
A manufacturer has just completed a situational analysis and found that raw material
prices are increasing.
How would this factor be classified in a SWOT analysis?
(A) Strengths
(B)
Weaknesses
(C)
Opportunities
(D) Threats
2
A company has cash flow shortage. They have an agreement with their bank, which
allows them to have a negative value in their cheque account, so that suppliers can draw
out required funds.
Which type of borrowing has the company undertaken?
(A) Personal Loan
(B)
Overdraft
(C)
Credit loan
(D) Mortgage
3
Which independent group aims to assist in reducing fraud and unfair practices in
financial markets and financial products?
(A) Department of Fair Trading
(B)
The State Ombudsman
(C)
Australian Securities and Investment Commission
(D) Australian Competition and Consumer Commission
4
A manager implements a classical-scientific approach to business.
Of which leadership style is this an example?
(A) Democratic
(B)
Participative
(C)
Autocratic
(D) Laissez faire
Page 3
STUDENT NUMBER/NAME: ……………………..
5
Which of the following is a cost of protectionism?
(A) Tariff revenue for the government
(B)
Increase in workplace conflict
(C)
Inefficient allocation of resources
(D) Downward pressure on inflation
6
Observe the following information.
Revenue: $389 000
Purchases: $185 000
Opening stock: $54 000
Expenses: $168 000
Closing stock: $72 000
Accounts receivables: $92 000
What is the gross profit for this business?
(A) $54 000
(B)
$204 000
(C)
$146 000
(D) $222 000
7
Which of the following has been the fastest growing aspect of globalisation?
(A) Financial markets
(B)
Labour markets
(C)
Consumers markets
(D) Corporate markets
8
Which of the following is an indicator that employment relations strategies are
ineffective?
(A) Decreased absenteeism
(B)
Increased levels of staff turnover
(C)
Greater records of grievances
(D) Higher rates of compensation claims by employees
Page 4
STUDENT NUMBER/NAME: ……………………..
9
A car polish manufacturer uses only natural waxes in their product line. Their aim is to
create a unique, consistent, and recognised customer perception about their product.
Which marketing strategy is this business undertaking?
(A) Product placement
(B) Product diversification
(C) Relationship marketing
(D) Product positioning
10
Raj’s fruit and vegetable has four locations in Sydney. Management has decided to
charge higher prices to customers living in areas with high income levels.
Which of the following marketing practices is Raj’s fruit store undertaking?
(A) Sugging
(B)
Price discrimination
(C)
Bait and switch
(D) Misleading advertising
11
A business experiences a depreciation of local currency.
Which financial strategy ensures minimal financial risk to its global operations?
(A) Hedging the currency
(B)
Purchase of derivatives
(C)
Borrowing for overseas
(D) Purchase of insurance for goods and services
12
Which business tax is levied on non-wage financial rewards given to employees?
(A) Payroll tax
(B)
Company tax
(C)
Fringe benefit tax
(D) Goods and services tax
Page 5
STUDENT NUMBER/NAME: ……………………..
13
More businesses are adopting open communication between employers and employees.
Which of the following justifies this decision?
(A) Open communication reduces conflict between employees.
(B)
Open communication establishes a divide between employees and employers.
(C)
Open communication allows employees to contribute ideas, increasing efficiency.
(D) Open communication allows decisions to be made quicker and more efficiently.
14
A hotel chain and a car hire company are attempting to gain a competitive advantage,
through accessing each other’s resources, including markets, technologies, capital and
people.
Which structural response to change are these businesses undertaking?
(A) Strategic alliance
(B)
Outsourcing
(C)
Merging
(D) Flattening management structure
15
Observe the following table.
Current assets
Non current assets
Current liabilities
Non current liabilities
Net profit
Capital
$
24 000
80 000
12 000
80 000
4 000
8 000
What would be the major concern for a stakeholder in this business?
(A) Efficiency
(B)
Solvency
(C)
Profitability
(D) Liquidity
Page 6
STUDENT NUMBER/NAME: ……………………..
16
Which international organisation aims to advance global trade agreements?
(A) World Bank
(B)
World Trade Organisation
(C) International Monetary Fund
(D) North American Free Trade Agreement
17
Which of the following would be used in an attempt to reconcile conflict, between
owners and managers of a business?
(A) Increase prices in order to maximise profits
(B)
Undertake regular checks of input in order to lower prices
(C) Exploit profits through environmentally hazardous opportunities
(D) Linking managerial pay to profitability and share value
18
Which of the following is a benefit of industrial conflict in the workplace?
(A) Loss of income to the employees involved
(B)
Increased staff turnover
(C) Employees are able to change policies they do not like
(D) New methods of communication systems may be established
19
A company believes that parent-country nationals are better qualified and more
trustworthy than host country nationals.
Which staffing system is this firm likely to use?
(A) Ethnocentric
(B)
Polycentric
(C) Geocentric
(D) Regiocentric approach
Page 7
STUDENT NUMBER/NAME: ……………………..
20
One perspectives of conflict assumes a fundamental unity of interest among members of
an organisation and thus denies that conflict has any necessary existence.
Which of the following identifies this perspective of conflict?
(A) Unitary perspective
(B)
Pluralist perspective
(C) Radical perspective
(D) Regulation perspective
Page 8
STUDENT NUMBER/NAME: ……………………..
Section II
40 marks
Attempt Questions 21–25
Allow about 1 hour and 15 minutes for this section
Answer the questions in the spaces provided. These spaces provide guidance for the expected
length of response.
Question 21 (5 marks)
Marks
Blooms Cosmetics PTY LTD has been operating successfully in Australia for 12 years.
Management has just introduced a new line of more expensive cosmetics and ‘anti-ageing’
skincare products.
(a)
Identify ONE marketing objective that Blooms Cosmetics may have.
1
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(b)
Describe TWO promotional strategies the business can use to market the new products. ..... 4
(i)
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(ii)
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Page 9
STUDENT NUMBER/NAME: ……………………..
Question 22 (6 marks)
Marks
Employees at Hunters Vale Vineyards have been in dispute with their employer over pay rates
and have decided to take industrial action.
(a)
Define industrial conflict.
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(b)
Identify ONE cause of industrial conflict. ................................................................................. 1
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(c)
Discuss ONE overt and ONE covert type of industrial action, in which employees may ........ 4
engage.
Overt: ...................................................................................................................................
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Covert: ................................................................................................................................
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Page 10
STUDENT NUMBER/NAME: ……………………..
Question 23 (9 marks)
Marks
An Australian manufacturer purchases some of its inputs from a developing country.
Management decides to relocate its production plant to this developing country.
(a)
Identify ONE reason why an Australian manufacturer may relocate their production plant
overseas. .................................................................................................................................... 1
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(b)
Outline how TWO stakeholders may be affected by the decision to relocate overseas. ........... 2
(i)
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(ii)
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(c)
Analyse ONE operations strategy and ONE employment relations strategy that can be
used when managing a global business. .................................................................................... 6
Operations strategy: ............................................................................................................
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Employment relations strategy: ..........................................................................................
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Page 11
STUDENT NUMBER/NAME: ……………………..
Question 24 (10 marks)
Marks
An effective leader is able to understand the workplace culture, motivate employees and be
flexible in responding to change.
(a)
Distinguish between the leadership style of classical-scientific theorists AND behavioural
theorists. .................................................................................................................................... 2
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(b)
Distinguish between interpersonal and informational managerial roles. Provide an
example of each role. ................................................................................................................. 4
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Question 24 continues on the next page
Page 12
STUDENT NUMBER/NAME: ……………………..
Question 24 (continued)
(c)
Marks
Explain TWO internal influences that may result in change within a business. ....................... 4
(i)
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(ii)
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End of Question 24
Page 13
STUDENT NUMBER/NAME: ……………………..
Question 25 (10 marks)
Marks
Use the following information to answer Question 25.
Balance sheet of ‘Stationary Supplies’, as at 30 June 2010
2009
2010
$
$
Current assets
Cash
2 000
10 000
Inventory
4 500
7 000
Accounts receivable
12 000
10 000
18 500
27 000
Non-current assets
Equipment
Motor vehicles
63 000
27 000
41 000
Total Assets
86 500
Current liabilities
Bank overdraft
Accounts payable
Non-current liabilities
Loan
90 000
1 800
6 200
8 000
2 000
6 000
8 000
48 000
48 000
48 000
48 000
Total liabilities
56 000
Owner’s equity
Capital
Net profit
Less drawings
21 000
13 500
4 000
Total owner’s equity
56 000
24 000
21 000
11 000
30 500
Additional information
Sales
2009 - $78 000
2010 - $93 000
(a)
68 000
19 500
44 000
34 000
Trade credit policy
40 days
Calculate the debt to equity ratio for ‘Stationary Supplies’ in 2010.
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Question 25 continues on the next page
Page 14
1
STUDENT NUMBER/NAME: ……………………..
Question 25 (continued)
(b)
Marks
Comment on the change in working capital from 2009−2010.
2
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(c)
Calculate and comment on the efficiency of Stationary Supplies between 2009 and 2010.
3
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(d)
Recommend TWO strategies that management can use to improve its working capital.
(i)
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(ii)
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End of Question 25
Page 15
4
STUDENT NUMBER/NAME: ……………………..
Section III
20 marks
Attempt Question 26
Allow about 35 minutes for this section
Answer the question on a SEPARATE page of your own paper, or writing booklet if provided.
Expected length of response is approximately six written pages or 800 words.
In your answer, you will be assessed on how well you:




demonstrate knowledge and understanding relevant to the question
use the information provided
communicate using relevant terminology and concepts
present a sustained, logical and cohesive response in the form of a business report
Question 26 (20 marks)
This question refers to the following case study.
GCG is a leading toy manufacturer and wholesaler that has been operating for 15 years.
Sales have been increasing at GCG and workers are expected to work longer hours.
The business uses a scientific/classical approach to management. Despite the increase
in sales, management has to deal with a number of other problems.
These include:
 Poor customer service
 Cash flow problems
 Poor staff morale and high staff turnover
 Increasing accounts payable and accounts receivable
 Problem meeting debt obligations on time
GCG wants to:
 Change its management approach to become more flexible and recognise needs of
employees
 Improve staff morale and increase productivity
 Ensure effective cash flow management
Assume that you have been employed as a consultant by GCG to prepare a report to assist with
planning for 2012.
In your report you need to:
 Describe an alternative management theory which could be implemented
 Recommend TWO cash flow management strategies to reduce accounts payable and
accounts receivable
 Evaluate TWO strategies which could be used to improve employment relations
Page 16
STUDENT NUMBER/NAME: ……………………..
Section IV
20 marks
Attempt EITHER Question 27 OR Question 28
Allow about 35 minutes for this section
Answer the question on a SEPARATE page of your own paper, or writing booklet if provided.
Expected length of response is approximately six written pages or 800 words.
In your answer you will be assessed on how well you:




demonstrate knowledge and understanding relevant to the question
use relevant business case study/studies
communicate using relevant business terminology and concepts
present a sustained, logical and cohesive response
EITHER
Question 27 (20 marks)
“In a global marketplace, a business needs to predict and manage the impact of a variety of
factors on its operations.”
Describe how the social/cultural factors can impact on a business AND analyse the product and
pricing strategies a global business may implement, in its marketing plan.
OR
Question 28 (20 marks)
Describe the elements of a marketing plan and analyse how a business could manage its marketing
strategies on a global scale.
End of paper
Page 17