NSW INDEPENDENT TRIAL EXAMS – 2011
BUSINESS STUDIES YR 11 PRELIMINARY EXAMINATION
MARKING GUIDELINES
Section I
1
D
2
B
3
C
4
D
5
D
6
A
7
D
8
A
9
B
10
C
11
C
12
C
13
C
14
B
15
B
16
B
17
C
18
B
19
A
20
D
Section II
Question 21(a)
Criteria
Marks
2
 Students differentiate between niche market AND mass market
1
 Student correctly define either niche market OR mass market
Answers may include: A mass marketing approach seeks a large range of customers whereas a niche
marketing approach is focused on a narrowly selected target market segment.
Question 21(b)
Criteria
 Students discuss TWO promotional techniques a business can use to promote products
 Students discuss ONE promotional technique a business can use to promote products
OR identifies TWO techniques
 Students identify ONE technique
Answers may include: Personal selling, sales promotion, publicity, advertising
Marks
3–4
2
1
Question 22(a)
Criteria
Marks
2
 Students outline TWO features of the maturity stage in the life cycle
1
 Students outline ONE feature of the maturity stage in the life cycle
Answers may include:
 Market saturation
 Rate of growth slows and may flatten out (plateauing)
 Rate of growth slows and eventually flattens out
 Cash flow position may start to deteriorate
 Need to improve efficiency to keep costs down, otherwise profits will start to fall even further
 Competition accepted but not increasing competition (feature of the growth phase)
Question 22(b)
Criteria
Marks
2
 Describes ONE strategy a business may adopt during the renewal phase of the life
cycle
1
 Students identify ONE strategy but does not describe it
Answers may include: Mergers, takeovers, diversification, introduction of new products, marketing
campaigns
Question 22(c)
Criteria
 Students discuss TWO factors that contribute to business failure
 Students discuss ONE factor that contribute to business failure OR identifies TWO
factors
 Students identify ONE factor which contributes to business failure
Answers may include:
 Lack of planning
 Lack of management knowledge
 Undercapitalisation
 Unexpected competition
 Incorrect location
 Government policies and other external factors
Marks
3–4
2
1
NSW Independent Trial Exams 2011 – Business Studies Yr 11 Preliminary Examination: Marking Criteria - Page 1
Question 23(a)
Criteria
 Students identify TWO skills which may contribute to a successful manager
 Students identify ONE skill which may contribute to a successful manager
Answers may include:
 Interpersonal
 Decision-making
 Communication
 Flexibility
 Strategic thinking
 Adaptability to change
 Vision
 Reconciling the conflicting interests of stakeholders
 Problem-solving
Question 23(b)
Criteria
 Students outline ONE financial AND ONE social goal this business may have
 Students either ONE financial OR ONE social goal this business may have
Answers may include:
 Financial goals – profit, increased market share, increased share price, maximise growth
 Social goals – community service, provision of employment, social justice
Question 23(c)
Criteria
 Students relate cause and effect to TWO key features of the behavioural approach to
management
 Students link both to the case study appropriately
 Students may relate cause and effect of ONE key feature of the behavioural approach
to management OR identify TWO key features
 Students link to the case study
 Students identify ONE key feature of the behavioural approach to management
 Students may not link to the case study
Answers may include:
 Humanistic approach – employees are the most important resource
 Economic and social needs of employees should be satisfied
 Employee participation in decision making
 Team-based structure
 Managers need good interpersonal skills
 Democratic leadership style emerging
Question 24(a)
Criteria
 Students correctly calculate the net profit for Comfy Furniture Pty Ltd
Answers: Net profit = $15 000
Marks
2
1
Marks
2
1
Marks
3–4
2
1
Marks
1
Question 24(b)
Criteria
Marks
2
 Students correctly distinguish between debt AND equity finance
1
 Students correctly define either debt OR equity finance
Answers may include: Debt finance refers to money obtained from external sources such as banks and
financial institutions whereas equity finance is money provided by the owners or shareholders of the business
and are an internal source of finance.
Question 24(c)
Criteria
 Students outline ONE advantage AND ONE disadvantage of equity
 Students outline ONE advantage OR ONE disadvantage of equity
Answers may include:
Advantages:
 Does not have to be repaid unless owner sells and leaves the business
Marks
2
1
NSW Independent Trial Exams 2011 – Business Studies Yr 11 Preliminary Examination: Marking Criteria - Page 2
 Cheaper than other sources of finance as there are no interest payments
 Owners who contributed finance retain control over how the finance is used
 Low gearing
 Less risk for the business and owners
Question 24(c) continues on the next page
Question 24(c) continued
Disadvantages:
 Lower profits and lower returns for the owners
 May take on additional owners therefore profits are distributed among more shareholders
 Limited amount of finance may be available
Question 24(d)
Criteria
Marks
3–4
 Students discuss ONE external AND ONE internal influence that may have caused the
change in net profit from 2010 to 2011
2
 Students discuss ONE external OR ONE internal influence that may have caused the
change in net profit from 2010 to 2011 OR they identify TWO influences
1
 Students identify ONE external OR ONE internal influence that may have caused the
change in net profit from 2010 to 2011
Answers may include: Profits have declined from 2010 to 2011.
 External influences that may have caused this include: economic, financial, geographic, social, legal,
political, institutional, technological, competitive situation, markets, a decrease in sales as a result of
management decisions.
 Internal influences – products, location, resources, management and business culture, purchase of non-
current assets as indicated on the balance sheet, poor inventory management as indicated by an
increase in stock on hand.
Question 25(a)
Steve’s Sofas merged with Fred’s Furniture to improve profits. Steve’s Sofas had been using classicalscientific theory while Fred’s Furniture used behavioural management theory. The result has been constant
arguing and a resistance to change among employees of the merged business.
a) Explain TWO possible reasons for resistance to change resulting from the merger of these two
businesses. (3 marks)

Students
2-3
1
b) Analyse why contingency management theory may be more appropriate for a merged business. (5
marks)
5
3-4
NSW Independent Trial Exams 2011 – Business Studies Yr 11 Preliminary Examination: Marking Criteria - Page 3
1-2
NSW Independent Trial Exams 2011 – Business Studies Yr 11 Preliminary Examination: Marking Criteria - Page 4
Section III- Question 26
SECTION III: BUSINESS REPORT
Outcomes: H2.1, H3.2, H4.2, H5.2, H5.3
Criteria
 Presents a sustained, logical and well-structured business report and
clearly communicates using appropriate terminology and concepts
 Comprehensively outlines appropriate funding alternatives for the
expansion- debt and equity
 Comprehensively relates the 4 steps involved in managing change
effectively, uses cause and effect
 Clearly identifies components and draws out implication s of TWO
marketing strategies recognizing the change in the external business
environment
 Links effectively to the case study provided


















Presents a well-organised business report with appropriate terminology
and concepts
Outlines appropriate funding alternatives for the expansion- debt and
equity
Clearly relates the 4 steps involved in managing change effectively,
may use cause and effect
May identify components and draws out implication s of TWO
marketing strategies recognizing the change in the external business
environment
Links consistently to the case study provided
Includes features of a business report and uses some business
terminology and concepts
Identifies some funding alternatives
May relate the 3-4 steps involved in managing change effectively,
mainly descriptive
Presents TWO marketing strategies and provides characteristics and
features of both, may analyse one
Mostly links to the case study
(20 MARKS)
Marks
17–20
13–16
9–12
Includes some features of a business report and uses basic business
terminology
Some steps in the management change process identified and described
Makes some reference to funding alternatives and/or marketing and
change management
Sketches in general terms ONE and/or TWO marketing strategies
May not link to the case study
5–8
Does not use report style and uses basic business terminology
Shows limited understanding of the meaning of funding, change
management or of a marketing strategy
Shows no understanding of the question asked or topic covered or case
study provided
1–4
NSW Independent Trial Exams 2011 – Business Studies Yr 11 Preliminary Examination: Marking Criteria - Page 5
NSW INDEPENDENT TRIAL EXAMS – 2011
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)
22(c)
23(a)
23(b)
23(c)
24(a)
24(b)
24(c)
24(d)
25(a)
25(b)
25(c)
25(d)
26
Content
Business management – management theories
Business management – nature of management
Business planning – influences in establishing a small to medium
enterprise
Business planning – the business planning process
Business management – management approaches
Business management – management process (marketing)
Business management – management process (operations)
Nature of business – influences in the business environment
Nature of business – types of business
Business management – management theories
Nature of business – role of business
Business planning – the business planning process
Business planning – the business planning process
Business management – management process (marketing)
Business management – management process (finance)
Business management – management process (human resources)
Business management – management process(finance)
Business management – management and change
Nature of business – influences in the business environment
Business management – management process (human resources)
Business management – management process (marketing)
Business management – management process (marketing)
Nature of business – business growth and decline
Nature of business – business growth and decline
Nature of business – business growth and decline
Business management – nature of management
Business management – achieving business goals
Key business functions – management approaches
Business management – management process (finance)
Business planning – influences in establishing a small to medium
enterprise (finance)
Business planning – influences in establishing a small to medium
enterprise (finance)
Nature of business – influences in the business environment
Business planning – the business planning process
Business planning – the business planning process
Business planning – the business planning process
Business planning – the business planning process
Business planning:
 Influences in establishing a small to medium enterprise
 Citical issues in business success and failure
Outcomes
P5
P4
P1
Band
2-3
2-3
3-4
P3
P5
P4
P4
P6
P1
P5
P1
P4, P10
P4, P10
P4
P4
P4
P5, P10
P8
P8
P4, P8
P4
P4, P5
P1
P1, P8
P2
P2
P8
P5
P10
P8
3-4
3-5
3-4
3-4
3-4
3-4
4-6
3-4
4-5
4-6
3-5
4-5
3-4
4-6
4-6
4-5
4-6
2-3
2-5
2-4
3-5
4-6
3-4
3-4
4-6
3-5
4-6
P8
4-6
P2
P1
P8
P1, P4
P1, P8
P1, P3, P4, P6,
P8, P9
4-6
2-3
3-5
3-5
4-6
3-6
NSW Independent Trial Exams 2011 – Business Studies Yr 11 Preliminary Examination: Marking Criteria - Page 6