NSW INDEPENDENT TRIAL EXAMS – 2012
BUSINESS STUDIES YR 11 PRELIMINARY EXAMINATION
MARKING GUIDELINES
Section I
1
D
2
C
3
B
4
D
5
D
6
A
7
B
8
B
9
B
10
C
11
D
12
A
13
C
14
D
15
A
16
C
17
A
18
B
19
C
20
B
Section II
Question 21(a)
Criteria
Marks
2
 Students outline an appropriate legal structure for Jacob’s cake store.
1
 Students identify an appropriate legal structure for Jacob’s cake store.
Answers may include: Sole trader: This is a business which is owned and operated by one person. This is the
lowest cost of entry and Jake can have complete control of the business.
Question 21(b)
Criteria
 Students describe TWO challenges Jacob may face during the establishment stage of
the business.
 Students describe TWO challenges Jacob may face during the establishment stage of
the business OR they identify two challenges
 Students identify ONE challenge Jacob may face during the establishment stage of the
business.
Answers may include:
 Startup costs
 High fixed costs to start from scratch and buy all major items
 Slow profit to start off with
 Choosing right location for the business
 Ensuring business regulations are adhered to
 Erratic cash flow in beginning – cash flow shortages
Marks
3–4
2
1
Question 21(c)
Criteria
Marks
3–4
 Students discuss TWO legal requirements when establishing a business.
2
 Students discuss ONE legal requirement when establishing a business OR they identify
two.
1
 Students identify ONE legal requirement when establishing a business.
Answers may include:
 Business name registration
 Zoning regulations
 Health regulations – this business is in the food industry
 Comply with the consumer law act (Trade Practices Act) which aims to promote fair trade and protect
consumers and business from deceptive or misleading practices
 OHS legislation
Question 22(a)
Criteria
Marks
2
 Students identify TWO skills required by an effective manager.
1
 Students identify ONE skill required by an effective manager.
Answers may include:
 Interpersonal, communication
 Decision-making
 Strategic thinking
 Flexibility
 Vision
 Adaptability to change
 Problem-solving
 Reconciling the conflicting interests of stakeholders
NSW Independent Trial Exams 2012 – Business Studies Yr 11 Preliminary Examination: Marking Criteria - Page 1
Question 22(b)
Criteria
Marks
3–4
 Students describe TWO economic contributions of SME’s within the Australian
economy.
2
 Students describe ONE economic contribution of SME’s within the Australian
economy OR they identify two.
1
 Students identify ONE economic contribution of SME’s within the Australian
economy.
Answers may include: Contribution to: gross domestic product, employment, balance of payments,
innovation and invention
Question 22(c)
Criteria
 Students explain TWO factors that must be considered by a business, to achieve
Marks
3–4
success.
2
 Students explain ONE factors that must be considered by a business, to achieve
success OR they identify two factors.
1
 Students identify ONE factor which may help a business achieve success.
Answers may include:
 Importance of a business plan
 Avoiding over-extension of finance and other
resources
 Management – staffing and teams
 Using technology
 Trend analysis
 Identifying and sustaining competitive advantage  Aware and respond to changing economic
conditions
Question 23(a)
Criteria
 Students correctly calculate the cost of goods sold for Nadia’s Natural Food in 2011.
Answers may include: COGS = $240 000
Marks
1
Question 23(b)
Criteria
 Students correctly calculate the gross profit for Nadia’s Natural food in 2011.
Answers may include: Gross profit = $260 000
Marks
1
Question 23(c)
Criteria
Marks
2
 Students correctly calculate and comment on the change in net profit in 2011.
1
 Students correctly calculate the net profit in 2011
Answers may include: Net profit = $84 000. There has been a decline in net profit from $100 000 in 2012 to
$84 000 in 2011.
Question 23(d)
Criteria
Marks
2
 Students describe how market segmentation can increase sales.
1
 Students define market segmentation.
Answers may include: Market segmentation occurs when the total market is subdivided into groups of people
who share one or more characteristics based on four elements or dimensions: demographic, geographic
lifestyle and behavioural. By focusing on this, the business can direct its marketing strategies at a particular
group that has been segmented, rather than the mass market. This can then lead to increased sales and profits,
while minimising waste and expenses.
NSW Independent Trial Exams 2012 – Business Studies Yr 11 Preliminary Examination: Marking Criteria - Page 2
Question 23(e)
Criteria
Marks
3–4
 Students discuss TWO promotional strategies which could be used by Nadia to
increase sales and market share.
2
 Students discuss ONE promotional strategy which could be used by Nadia to increase
sales and market share OR they identify two.
1
 Students define market segmentation.
Answers may include:
 Personal selling – outlines features of a good to customers. Message can be modified to suit the customer.
However, time consuming and expensive.
 Sales promotion – activities to attract interest in product, such as free food samples to test the product.
Special offers.
 Publicity – the business sets up a free news story about its product, enhancing image of the product.
 Advertising – communicate information to consumers via print or electronic mass media.
Question 24(a)
Criteria
 Students identify TWO financial goals of business
 Students identify ONE financial goals of business
Answers may include:
 Profits
 Share price
 Market share
 Social
 Growth
 Environmental
Marks
2
1
Question 24(b)
Criteria
Marks
2
 Students outline TWO benefits of mentoring as a strategy to increase staff involvement
1
 Students outline ONE benefit of mentoring as a strategy to increase staff involvement
Answers may include:
 Ensures access to mentors for all employees.
 Participants in the mentoring relationship know what is expected of them.
 New employees have their mentors there to help them ease into their new job.
 Provides a means for training and development of employees.
 Passes on skills and knowledge from more experienced staff to other employees. (skill transfer).
 Provides employees with someone to ask questions and share ideas or concerns.
 Allows mentors to develop their interpersonal skills and feel valued in the enterprise (sense of
satisfaction).
Question 24(c)
Criteria
Marks
2
 Students explain the relationship between staff involvement and productivity.
1
 Students identify a relationship between staff involvement and productivity.
Answers may include: Staff involvement means involving employees in the decision making process and
giving the necessary skills and rewards. By employing staff involvement in the workplace it maximises
employee involvement and satisfaction which in turn can result in a higher level of output. This results in
higher productivity by employees and long term business success. Employee involvement can also link
productivity with earnings for the business and the individual.
NSW Independent Trial Exams 2012 – Business Studies Yr 11 Preliminary Examination: Marking Criteria - Page 3
Question 24(d)
Criteria
Marks
3–4
 Students recommend TWO strategies which can be used by management to effectively
reduce resistance to change.
2
 Students recommend ONE strategy which can be used to reduce resistance to change
OR they identify TWO.
1
 Students identify ONE strategy which can be used by management to effectively
reduce resistance to change.
Answers may include:
 Creating a culture of change – using change agents with open communication channels to create a
supportive environment which encourages team work and reduces fear of change.
 Positive leadership – where leaders are sharing the vision with employees and have high expectations of
employee’s abilities to initiate and implement a change process. This will generally result with employees
being more willing to embrace the changes. Leader supports and trusts the employees and is concerned
with their welfare, offering support. This tends to reduce resistance to change.
 Two way communication in the workforce.
 Discuss any upcoming change; this reduces the fear of the unknown.
 Allow employees to participate in the change process.
Section III
Question 25
Criteria
 Presents a sustained, logical and well-structured business report that provides a
thorough outline of TWO external influences which may impact on the business
 Provides a comprehensive discussion of TWO finance options which can be used to
fund this business
 Provides a thorough evaluation of the human resource strategies that can be used to
manage employees effectively
 Extensively uses relevant business terminology and concepts in appropriate forms
 Presents a well-organised and well-structured business report that provides a detailed
outline of TWO external influences which may impact on the business
 Provides a detailed discussion of TWO finance options which can be used to fund this
business
 Provides a detailed evaluation of the human resource strategies that can be used to
manage employees effectively
 Substantially uses relevant business terminology and concepts in appropriate forms
 Presents a business report that provides some outline of TWO external influences
which may impact on the business
 Provides a description of TWO finance options which can be used to fund this business
 Provides some discussion on the human resource strategies that can be used to manage
employees effectively
 Satisfactorily uses relevant business terminology and concepts in appropriate forms
 Presents a business report that provides a limited outline of TWO external influences
which may impact on the business
 Lists debt and/or equity which can be used to fund this business
 May make mention of one or more human resource strategies that can be used to
manage employees effectively
 Uses basic business terminology and concepts in appropriate forms
 Identifies an external influence which may impact on the business
 May refer to debt or equity finance
 Uses basic business terminology
 Does not write in an appropriate business format
Question 25 continues on the next page
Marks
17–20
13–16
9–12
5–8
1–4
NSW Independent Trial Exams 2012 – Business Studies Yr 11 Preliminary Examination: Marking Criteria - Page 4
Question 25 continued
Students should address the following in the report:
Students outline TWO external influences which may impact on the business.
This may include:
 Economic
 Financial
 Geographic
 Social
 Legal





Political
Institutional
Technological
Competitive situation
Markets
Students discuss TWO finance options which can be used to fund this business. These may include:
Debt finance – this is money obtained through loans. The main advantage with debt financing is the owner
does not have to sell any ownership in the business. It also has tax advantages. However is must be repaid
with interest so increases the amount of debt for the business.
There are three main terms for debt financing:
 Short term – less than one year
 Medium term – between one and five years
 Long term – greater than five years
Equity finance – this is also called equity capital and refers to funds contributed by the business owners.
This has an advantage over debt financing in that it does not have to be repaid. There are no interest
repayments to be made so it a cheaper source of finance. The owner retains control if they contribute the
equity – if they take in additional shareholders they lose control of some of the business.
Students evaluate the human resource strategies that can be used to manage employees effectively.
This may include:
Acquisition:
 Identify staffing needs – this can refer to an experienced hairdresser and an apprentice hairdresser. This is
the human resource planning and requires a job analysis of what each employee’s duties and tasks will be.
 Recruitment – involves finding and attracting the right people to apply for the job. Recruitment method
will be external to try and find suitable applicants. TAFE’s or colleges may be used to recruit the
apprentice.
 Selection – choosing the most appropriate applicant for the job.
Training and development:
 Training is essential especially for the apprentice. This is the process of teaching them how to perform
their job efficiently and ultimately improve their employability.
 Developing staff requires training. Experienced hairdresser may need further development to take on
greater responsibility.
 Training can be formal off the job training – sending workers to different course; apprentice will still be
studying.
 Informal on-the-job training.
Maintenance of human resources:
 Need to provide working conditions that will encourage them to stay with the business.
 Monetary and non-monetary benefits.
 Employment contracts – award, enterprise agreement or common law contract.
Separation of human resources: Students may make reference to voluntary and involuntary separation as
part of managing the human resources and ending the employment relationship.
NSW Independent Trial Exams 2012 – Business Studies Yr 11 Preliminary Examination: Marking Criteria - Page 5
NSW INDEPENDENT TRIAL EXAMS – 2012
BUSINESS STUDIES YR 11 PRELIMINARY EXAMINATION
MAPPING GRID
Qu
1
2
3
4
5
6
7
8
Mark
1
1
1
1
1
1
1
1
9
10
11
1
1
1
12
13
14
1
1
1
15
1
16
17
18
19
20
21(a)
21(b)
1
1
1
1
1
2
4
21(c)
4
22(a)
22(b)
22(c)
23(a)
23(b)
23(c)
23(d)
24(e)
24(a)
24(b)
24(c)
24(d)
25
2
4
4
1
1
2
2
4
2
2
2
4
20
Content
Nature of business – types of business
Business planning – the business planning process
Nature of business – types of business
Business management – management approaches
Nature of business – business growth and decline
Nature of business – business growth and decline
Business planning – the business planning process
Business management – management process
Business management – management process
Business management – management process
Business planning – influences in establishing a small to medium
enterprise
Business management – management process
Business planning – business planning process
Business planning – influences in establishing a small to medium
enterprise
Business planning – influences in establishing a small to medium
enterprise
Nature of business – business growth and decline
Nature of business – influences in the business environment
Business management – management approaches
Business management – management process
Nature of business – role of business
Nature of business – types of business
Nature of business – business growth and decline
Business planning – influences in establishing a small to medium
enterprise
Business management – nature of management
Business planning – small to medium enterprises
Business planning – critical issues in business success and failure
Business management – management process
Business management – management process
Business management – management process
Business management – Management process (marketing )
Business management –Management process (marketing)
Nature of business
Business management – achieving business goals
Business management – achieving business goals
Business management – management and change
Nature of business – influences in business
Business planning – influences in establishing a small to medium
enterprise
Business management – managing processes
Outcomes
P1
P8
P1
P5
P8
P7, P8
P8
P5, P8
Band
2-3
2-3
3-4
3-4
3-4
3-4
3-4
3-=4
P4
P10
P6
4-5
4-5
4-5
P4
P10
P2
4-5
5-6
4-5
P6
4-5
P8
P2
P5
P4
P1
P1
P2, P8
5-6
5-6
5-6
5-6
5-6
2-3
3-4
P1, P9
4-5
P1
P1, P9
P3, P9
P10
P10
P8, P10
P2, P9
P2, P4
P1
P2, P9
P8
P2, P4, P9
P1, P2, P4,
P6, P7, P9
2-3
4-5
4-6
3-4
3-4
3-5
4-6
4-6
2-3
4-5
4-5
4-6
3-6
NSW Independent Trial Exams 2012 – Business Studies Yr 11 Preliminary Examination: Marking Criteria - Page 6