Student No: ___________

ABBOTSLEIGH

BUSINESS STUDIES
HSC Trial
2012

Section I
20 marks
Attempt Questions 1 – 20
Allow about 35 minutes for this
section

Section II
General Instructions: 40 marks
Attempt Questions 21-25
Allow about 1 hour 15 minutes for this
section
 Reading time – 5 minutes
 Working time – 3 hours Section III
 Write using blue or black pen 20 marks
 Board-approved calculators Attempt Question 26
Allow about 35 minutes for this
may be used section

Section IV
20 marks
Attempt Question 27 OR Question 28
Allow about 35 minutes for this
section
Part I – 20 marks
Attempt Questions 1-20
Allow about 35 minutes for this part

Use the multiple-choice answer sheet provided for Questions 1-20

Select the alternative A, B, C or D that best answers the question. Fill in the response oval
completely.
Sample 2 + 4 = (A) 2 (B) 6 (C) 8 (D) 9
A B C D
If you think you have made a mistake, put a cross through the incorrect answer and fill in the
new answer.
A B C D
If you have changed your mind and have crossed out what you consider to be the correct
answer, then indicate this by writing the word correct and drawing an arrow as follows:
correct

A B C D

1 Aussie Biscuits Pty Ltd have invested $1.5 million in new equipment. This has helped
Aussie Biscuits achieve economies of scale and produce biscuits lower in price than its
competitors.

Which of the following strategies would best describe the investment made by Aussie
Biscuits?

(A) Competitive advantage

(B) Price penetration
(C) Cost leadership
(D) Loss leader

2 Ab Flex Pty Ltd sells exercise equipment that helps reduce your waistline. Ab Flex has
not conducted any market research and has recently run a series of advertisements on
late night television.

Which approach to marketing has Ab Flex used?

(A) Marketing approach

(B) Customer satisfaction
(C) Production approach
(D) Selling approach
3 The management team is primarily concerned with meeting the short term liabilities as
they fall due.

Which financial objective is management dealing with?

(A) Discounts for early payments

(B) Liquidity
(C) Solvency
(D) Growth

4 Betta Electronics’ workforce is predominately female. The business is offering staff the
opportunity to “job-share”, so employees can improve their work-life balance.

Which key influence on human resources is behind this decision?

(A) Social
(B) Economic
(C) Legal
(D) Technological

5 Which of the following would be considered inputs into a hair dressing salon?

(A) Materials, human resources and customers

(B) Location, knowledge and people
(C) Management structure, equipment and raw materials
(D) Materials, finances and people

6 Which of the following is a benefit of outsourcing human resources?

(A) It allows management to focus on training and development

(B) It increases operational costs associated with human resources
(C) It provides access to businesses that specialise in human resource management
(D) A better understanding of the business culture
7 ‘Toys 4 Us’ is a toy company which has been criticised for designing products that are
considered to be of unacceptable quality that break after a month of normal use.

Which of the following is a concern for consumers of ‘Toys 4 Us’ products?

(A) Sugging
(B) Deceptive and misleading advertising
(C) Implied conditions
(D) Creation of needs

Use the table below for questions 8 and 9.

Balance Sheet for Cut Above Pty Ltd

30 June 2012

Current
Current Assets $ Liabilities $

Cash 14000 Accounts Payables 2200

Accounts Receivables 1500 Overdraft 10000
Stock 3800

Non-current Assets Non-current Liabilities

Building 340000 Mortgage 120000

Plant & Equipment 84000
Intangibles 75000 Owner's Equity
Capital 208000
Retained Profits 17???8100
Total $518300 $518300

8 What is the value of retained profits?

Table heading
(A) $148000
(B) $178100
(C) $518300
(D) $386000
9 What is the current ratio for Cut Above Pty Ltd?

(A) .63: 1
(B) 2: 1
(C) 1.58:1
(D) 1: 1

10 John is a designer of custom made jewellery for teenagers. In what type of market does
John operate?

(A) Industrial
(B) Niche
(C) Resource
(D) Intermediate

11 Solid Constructions Pty Ltd is considering a new enterprise agreement for their
employees. The employer is reluctant to involve unions in the negotiations.

Which of the following internal stakeholders would be negatively impacted by this

decision?

(A) Employees
(B) Employers
(C) Employer Associations
(D) Trade Unions

12 Tesko Ltd is a supermarket which is publicly listed on the Australian Stock Exchange.
Its management have decided to raise funds through the issuing of new shares.

What source of finance is Tesko undertaking?

(A) Debt
(B) Equity
(C) Retained profits
(D) Private equity
13 Aldi supermarkets have used information from its internal sales reports to construct its new
marketing plan.

What type of market research data has Aldi used?

(A) Primary data

(B) Focus groups data
(C) Experimental data
(D) Secondary data

14 Koka Kola has invested in new machinery which allows managers to quickly move
between high and low volume output with ease.

Which performance objective has Koka Kola satisfied?

(A) Economies of scale

(B) Dependability
(C) Flexibility
(D) Speed

15 Tippy Top has introduced a gluten free range of breads which is now available in all
supermarkets around Australia.
Which form of distribution is being used?

(A) Niche distribution

(B) Selective distribution
(C) Intensive distribution
(D) Mass market distribution

16 DJ’s Clothing Pty Ltd decides to sell its account receivables to a specialist firm in order to
increase the amount of cash on its balance sheet.
Which strategy is DJ’s Clothing using?

(A) Commercial Bills

(B) Sale and lease back
(C) Outsourcing
(D) Factoring
 Question 17 and 18 refers to the following financial information.

($) Jan Feb Mar Apr May Jun Jul

Opening - - -
balance 200 300 - 1,200 800 900 100 1,200
Cash in 1,000 1,000 1,000 1,200 1,600 2,400 3,600
Cash out 700 2,500 600 1,300 800 1,100 1,500
Closing
balance

17 What is the opening cash balance for April?

(A) $600
(B) $800
(C) -$600

(D) -$800

18 Which of the following would be an appropriate management strategy to address the

situation?

(A) Sale and lease back

(B) Offering discounts for early payment
(C) Cost control
(D) Gearing

19 What is the name of the term given for a legal document that sets out the minimum
wages and working conditions for a particular industry or occupation?

(A) Awards
(B) Minimum wage rates
(C) Minimum employment standards
(D) Employment contract
20 Question 20 refers to the following information.

B 3 C

2 5

A D
2 7
2 E 3
3
G 4 F

Which of the following shows the Critical Path?

(A) A-E-D
(B) A-B-C-D
(C) A-G-E-D
(D) A-G-F-D

End of Section I
BUSINESS STUDIES
Section II
Attempt Questions 21-25
Allow about 1 hour and 15 minutes for this part

Answer the questions in the spaces provided.

Show all relevant working in questions involving calculations.

Question 21 (10 marks) Marks

Zapatos Pty Ltd is a designer and manufacturer of leather shoes. Management at Zapatos
are going to expand their business operations throughout Asia and Latin America.

(a) Outline ONE global factor a business must consider in its operation strategies. 2

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(b) Describe how businesses transform resources. 3

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Question 21 continues on the next page
Question 21 (continued) Marks

(c) Distinguish between legal compliance and ethical responsibility. 3

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(d) Outline TWO reasons for management resisting change. 2

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End of Question 21
Question 22 (9 marks)
Marks

Telstar Pty Ltd recently increased its marketing

budget, as it seeks to increase both sales and
market share for its new smart phone.

(a) Define the term “niche market”. 1

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(b) Explain TWO ethical issues that management need to consider in their 4
marketing strategies.

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Question 22 continues on the next page

 Question 22 (continued)

Marks
(c) Propose a product/service differentiation strategy that could be implemented by 2
management to achieve their marketing objectives.

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(d) Telstar is considering spending their marketing budget on e-marketing. Define

the term “e-marketing” and outline ONE benefit of e-marketing to Telstar.
2
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End of Question 22
Question 23 (5 marks) Marks

(a) What is the strategic role of human resources? 2

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(b) Outline the influence of ONE government organisation in the human resource 1
process.

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(b) Explain the aim of antidiscrimination and equal employment opportunity legislation. 2

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End of Question 23
Question 24 (9 marks) Marks

Southern Star Building Supplies Pty Ltd

30 June 2012

$ $

Sales 350000

Opening stock 20000

Purchases 145000
Closing stock 50000 115000

Gross profit 235000

Operating expenses
Wages 55000
Utilities 10000
Rent 70000
Advertising 50000
Insurance 12000
Interest 14000 211000

Net profit 24000

2011 Net profit: 8%

Ratios Gross profit: 80%

(a) Calculate and comment on the gross profit ratio for Southern Star Building Supplies 2
Pty Ltd (show all workings).

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Question 24 continues on the next page

 Question 24 (continued)

Marks
(b) Calculate and compare the 2012 net profit ratio of Southern Star Building Supplies with 3
its 2011 results. (Show all workings)

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(c) Recommend TWO cost controls which can be adopted by Southern Star Building 4
Supplies.

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End of Question 24
Question 25 (7 marks) Marks

(a) Outline three global market influences on the financial management of a business. 3

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(b) Evaluate TWO methods of international payments that an exporter may use in the 4
management of its finances.

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End of Question 25
Section III
Total marks (20)
Attempt Question 26
Allow about 35 minutes for this section.

Answer the question in a writing booklet. Extra writing booklets are available.

In your answer you will be assessed on how well you:

 Demonstrate knowledge and understanding relevant to the question

 Apply the hypothetical business situation
 Communicate using relevant business terminology and concepts
 Present a sustained, logical and cohesive response in the form of a business report

Question 26 (20 marks)

Pointbreak Pty Ltd manufactures and sells fashionable sunglasses directly to retail outlets in
metropolitan areas throughout Australia. The business employs 200 employees in
manufacturing, administration and sales.

Pointbreak Pty Ltd has recently reached the maturity stage of the business life cycle. Market
share has stagnated at 35%. It has identified the Asian region as a source of expansion.
However, such plans will require further funds and new global marketing strategies.

In addition, Pointbreak has experienced problems with human resources. Management is

finding it difficult to acquire and maintain staff, experiencing high levels of staff turnover.

You have been employed as a consultant to prepare a report for the management of
Pointbreak Pty Ltd.

In your report, you should:

 Describe the processes of human resource management

 Explain global marketing strategies that could be implemented
 Recommend an appropriate source of finance to fund the expansion plans into Asia.
Include an outline of all available sources of finance in your response.

End of Section III

Section IV
Total marks (20)
Attempt Question 27 OR Question 28
Allow about 35 minutes for this section.

Answer the question in a SEPARATE writing booklet. Extra writing booklets are available.

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 and contemporary business issues
 Communicate using relevant business terminology and concepts
 Present a sustained, logical and cohesive response

Question 27 (20 marks)

How does the marketing process help a business sustain its competitive advantage and
contribute to business success?

OR

Question 28 (20 marks)

How does operations strategies help a business sustain its competitive advantage and
contribute to business success?

End of paper
 Student No: ___________

BUSINESS STUDIES
HSC TRIAL EXAMINATION

MULTIPLE CHOICE ANSWER SHEET

SECTION I

1 A B C D

2 A B C D

3 A B C D

4 A B C D

5 A B C D

6 A B C D

7 A B C D

8 A B C D

9 A B C D

10 A B C D

11 A B C D

12 A B C D

13 A B C D

14 A B C D

15 A B C D

16 A B C D

17 A B C D

18 A B C D

19 A B C D

20 A B C D
 ABBOTSLEIGH

BUSINESS STUDIES
HSC Trial
August 2012
Marking Guidelines

Section I
Part A – 20 marks
Questions 1-20 (1 mark each)

Question Answer
1 C
2 D
3 B
4 A
5 A
6 C
7 C
8 B
9 C
10 B
11 A
12 B
13 A
14 C
15 C
16 D
17 C
18 B
19 A
20 C

1
Section II

Question 21 (10 marks)

(a)

Criteria Marks
Sketches in general terms; indicates ONE global factor in its operations strategies 2
Identifies one global factor in its operations strategies 1

Sample answer:

Outline: Sketch in general terms; indicate the main features of

global factors – global sourcing, economies of scale, scanning and learning, research and
development

(b)
.
Criteria Marks
Provides characteristics and features of TWO transforming resources 3
Provides characteristics and features of ONE transforming resource OR 2
Sketches in general terms; indicate the main features of TWO transforming
resources
 Recognises and names two transforming resources 1

Sample answer:

Describe: Provide characteristics and features

Sample answers should include:

 Human resources
 Facilities

2
(c)

Criteria Marks
Distinguishes between legal compliance and ethical responsibility 3
Outlines between legal compliance and ethical responsibility 2
Identifies between legal compliance and ethical responsibility 1

Sample answer: Distinguish: recognise and indicate as being distinct or different from:
to note differences between.

Outline: Sketch in general terms; indicate the main features of

Identify: Recognise and name.

Ethical behaviour involves making decisions that are both legally and morally correct. This
may be carried through a code of conduct which may support charities, provide community
consultation or promote rights domestically or internationally. Businesses may aim at
minimising damage to the environment through recycling or appropriate waste management.

(d)

Criteria Marks
Sketches in general terms; indicates TWO reasons for resisting change 2
Outlines only ONE reason OR identifies TWO reasons only 1

Sample answer:

Outline: Sketch in general terms; indicate the main features of

Overcoming resistance to change- financial costs, purchasing new equipment, redundancy

payments, retraining, reorganising plant layout, inertia

Question 22 (9 marks)

(a)
.
Criteria Mark
Defines niche market 1

Define: State meaning and identify essential qualities.

Sample answer
A niche market is the subset of the market on which a specific product is focusing; therefore
the market niche defines the specific product features aimed at satisfying specific market
needs.

3
(b)

Criteria Marks
Clearly explains TWO ethical issues that management need to consider in their
4
marketing strategies
Sketches in general terms TWO ethical issues 3
Clearly explains ONE ethical issue 2
Recognises and names TWO factors that influence consumers 1

Sample answer:
Explains: Relate cause and effect; make the relationships between things evident; provide
why and/or how.

Ethical issues include – truth, accuracy and good taste in advertising, products that may
damage health, engaging in fair competition, sugging

(c)

Criteria Marks
Clearly proposes a product/service differentiation strategy to achieve increased 2
sales and market share
Sketches in general terms a product/service differentiation strategy to achieve 1
increased sales and market share

Sample answer:

Propose: Put forward (for example a point of view, idea, argument, suggestion) for
consideration or action

Strategies may include- customer service, product quality, pricing startegies …..

(d)

Criteria Marks
Correctly defines e-marketing and clearly outlines one benefit 2
Correctly defines e-marketing only 1
Clearly outlines one benefit only

Sample answer:

Define: State meaning and identify essential qualities.

Outline: Sketch in general terms; indicate the main features of:

E-marketing- Electronic marketing. Is the practice of using the internet to perform marketing
activities.
Benefits: Cost savings, larger market, easier for consumers (24/7, shop from home) …

4
Question 23 (5 marks)

(a)

Criteria Marks
Correctly explains the strategic role of human resources 2
A sketchy explanation of the strategic role of human resources 1

Sample answer:
Strategic role is to assist the business achieve its long-term goals. It incorporates all aspects
of managing the employee-employer relationship in the workplace, including
acquisition, development, maintenance and separation.

(b)

Criteria Mark
Sketches in general terms; indicates the main features of a government organisation 1
in the human resource process
Sample answer:

Outline: Sketch in general terms; indicate the main features of.

Governments establish the frame work by which employers, employees and unions coexist.
Examples of government organisations include FairWork Australia.

(c)

Criteria Marks
Clearly explains the aim of antidiscrimination and EEO legislation 2
Sketches in general terms the aim of antidiscrimination and EEO legislation 1
Sample answer:

Explains: Relate cause and effect; make the relationships between things evident; provide
why and/or how
Aim of anti-discrimination legislation is to ensure that someone, or a group of people, is
treated less favourably than another person or group.

Aim of Equal Employment Opportunity (EEO) is making sure that everyone has equal access
to available employment. This means having workplace rules, policies, practices and
behaviours that are fair and do not disadvantage people. This is to ensure that people
are not disadvantaged or discriminated against in employment, in particular women
and Aboriginal people and Torres Strait Islanders.

5
Question 24 (9 marks)

(a)

Criteria Marks
Correctly calculates as 67% and states that for every $1 of sales 67 cents of gross 2
profit is generated
Correctly calculates as 67% and states that the gross profit ratio has got worse in 2
2012 compared to 2011
Correctly calculates as 67% and states that the gross profit ratio has decreased in 1
2012 compared to 2011 1/2
Correctly calculates as 67% only 1

Answer:

Gross Profit Ratio = Gross Profit x 100

Sales 1
= $235000 x 100
$350000 1
= 67.14%

(b)

Criteria Marks
Correctly calculates as 6.9% and states that the net profit ratio has got worse in 3
2012 compared to 2011
Correctly calculates as 6.9% and states that the gross profit ratio has decreased in 2
2012 compared to 2011
Correctly calculates as 6.9% only 1
Sample answer:

Compare: show how things are similar or different

Net Profit Ratio = Net Profit x 100 Comment:

Sales 1
Southern Star Building
= $ 24 000 x 100 Supplies generates 6.85 cents
$350 000 1 net profit for every $1 of sale
which is below the 2011
result of 8 cents net profit for
every $1 of sale
= 6.86%

6
(c)

Criteria Marks
Provides TWO reasons in favour for the chosen method of cost controls 4
Provides ONE reason in favour for the chosen method of cost controls and 3
sketches in general terms another
Sketches in general terms TWO reasons in favour for the chosen method of cost 2
controls
Sketches in general terms ONE reason in favour for the chosen method of cost 1
controls

Sample answer:

Recommends: Provide reasons in favour

Cost controls: Fixed and variable costs:

Cost centres
Expense minimisation

Question 25 (7 marks)

(a)

Criteria Marks
Sketches in general terms THREE global market influences on the financial 3
management of a business
Sketches in general terms TWO global market influences on the financial 2
management of a business
Sketches in general terms ONE global market influence on the financial 1
management of a business

Sample answer:

Outline: Sketch in general terms; indicate the main features of:

 Economic outlook
 Availability of funds
 Interest rates

(b)

Criteria Marks
Makes a judgement based on criteria; determines the value of TWO methods of 4
international payments
Provides characteristics and features of TWO methods of international 3
payments
Sketches in general terms TWO methods of international payments 2
Sketches in general terms ONE methods of international payments 1

7
Sample answer:

Evaluates: Make a judgement based on criteria; determine the value of:

 Payment in advance
 Letter of credit
 Clean payment
 Bill of exchange
Question 26 (20 marks)

Criteria Marks
 Presents a sustained, logical and cohesive response in the form of a
business report
 Demonstrates comprehensive knowledge and understanding related to the
question, using relevant terminology, concepts and information provided
 Comprehensively describes the processes of human resource management 17-20
 Comprehensively explains global marketing strategies
 Comprehensively outlines sources of finance and recommends an
appropriate source of finance
 Presents a well-organised response in the form of a business report
 Demonstrates knowledge and understanding related to the question, using
relevant terminology, concepts and information provided
 Describes in some detail the processes of human resource management 13-16
 Explains in some detail global marketing strategies
 Outlines in some detail sources of finance and recommends a source of
finance
 Presents a response using features of a business report
 Demonstrates some knowledge and understanding related to the question
using some relevant terminology, concepts and information provided
 Sketches in general terms the processes of human resource management 9-12
 Sketches in general terms global marketing strategies
 Sketches in general terms sources of finance and attempts to recommend an
appropriate source of finance
 Includes some features of a business report
 Demonstrates limited knowledge and understanding using limited
terminology, concepts and information 5-8
 Limited description of the processes of human resource management
 Limited explanation of global marketing strategies
 Limited outline of sources of finance
 Uses basic terminology
 Refers to business information 1-4
 Little or no reference to the processes of human resource management
 Limited or no reference to global marketing strategies
 Limited or no reference to sources of finance

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 PLAN

1. Processes of human resource management

 acquisition
 development
 maintenance
 separation

2. Global marketing

 global branding
 standardisation
 customisation
 global pricing
 competitive positioning

3. Sources of finance

 internal sources of finance – retained profits

 external sources of finance:

debt– short-term borrowing (overdraft, commercial bills, factoring), long-

term borrowing (mortgage, debentures, unsecured notes, leasing)

equity– ordinary shares (new issues, rights issues, placements, share

purchase plans), private equity

9
Question 27 (20 marks)

Criteria Marks
 Presents a sustained, logical and cohesive response in the form of a
business report
 Demonstrates comprehensive knowledge and understanding related to the
question, using relevant terminology, concepts and information provided
 Draws out and relates the implications of the marketing process and its 17-20
impact on competitive advantage and business success
 Presents a well-organised response in the form of a business report
 Demonstrates knowledge and understanding related to the question, using
relevant terminology, concepts and information provided
 Shows some relationship between the marketing process and its impact on 13-16
competitive advantage and business success
 Presents a response using features of a business report
 Demonstrates some knowledge and understanding related to the question
using some relevant terminology, concepts and information provided
 Provides characteristics and/or features of the marketing process 9-12
 Includes some features of a business report
 Demonstrates limited knowledge and understanding using limited
terminology, concepts and information 5-8
 Sketches in general terms the marketing process
 Uses basic terminology
 Refers to business information 1-4
 May refer to the marketing process

Plan:

Marketing process:
• situational analysis – SWOT, product life cycle
• market research
• establishing market objectives
• identifying target markets
• developing marketing strategies

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• implementation, monitoring and controlling – developing a financial forecast;
comparing actual and planned results, revising the marketing strategy

Question 28 (20 marks)

Criteria Marks
 Presents a sustained, logical and cohesive response in the form of a
business report
 Demonstrates comprehensive knowledge and understanding related to the
question, using relevant terminology, concepts and information provided
 Draws out and relates the implications of operation strategies and their 17-20
impact they have on competitive advantage and business success
 Presents a well-organised response in the form of a business report
 Demonstrates knowledge and understanding related to the question, using
relevant terminology, concepts and information provided
 Shows some relationship between operation strategies and their impact they 13-16
have on competitive advantage and financial management objectives
 Presents a response using features of a business report
 Demonstrates some knowledge and understanding related to the question
using some relevant terminology, concepts and information provided
 Provides characteristics and/or features of operation strategies 9-12
 Includes some features of a business report
 Demonstrates limited knowledge and understanding using limited
terminology, concepts and information 5-8
 Sketches in general terms operation strategies
 Uses basic terminology
 Refers to business information 1-4
 May refer to operation strategies

Plan:

Operations strategies:

 performance objectives – quality, speed, dependability, flexibility, customisation, cost

 new product or service design and development
 supply chain management – logistics, e-commerce, global sourcing
 outsourcing – advantages and disadvantages

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 technology – leading edge, established
 inventory management – advantages and disadvantages of holding stock, LIFO (last-
in-first-out), FIFO (first-in-first-out), JIT (just-in-time)
 quality management- control, assurance, improvement

12