HSC Business Studies

Past HSC Questions:

Operations
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Introduction
This booklet is full of past HSC questions. It contains the questions and recommended answers. It is
important that you are doing past HSC questions each week as part of your regular study routine. This
will help you to:
1. Understand the types of questions that you might be required to answer in the trial and HSC
exams
2. Test your understanding of the content
3. Identify areas for improvement
4. Build up your writing stamina (there is a lot of writing, believe me!!!!)

General Exam Layout

Total (100 Marks) – 3hrs + 5 minutes reading time
• Section 1: Multiple Choice (20 Marks)
• Section 2: Short Answer (40 Marks)
• Section 3: Business Report (20 Marks)
• Section 4: Extended Response using Case Studies (20 Marks)

Helpful Tips for Studying

1. Pick a place and a time (Make sure this is consistent)
2. Get into a routine (It takes 2 weeks to make a habit)
3. Plan your studying time (Have a goal for each session)
4. Take Breaks (This is important so you do not get fatigued)
5. Discover your learning style (visual learner, auditory learner???)
6. Make your own study materials
7. If you are confused get help from others (other students, your teacher)
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Subject: Business Studies Remember to:

• Have goals
• Take Breaks,
reward yourself
• Write, don’t just
highlight!!

Monday Tuesday Wednesday Thursday Friday Saturday/ Sunday

8am
9am
10pm
11pm
12pm
1pm
2pm
3pm
4pm
5pm
6pm
7pm
8pm
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Multiple Choice
1. Sally shops at a particular store as she has always received excellent service there. What type
of factor is influencing her choice of store?

(A) Economic
(B) Government
(C) Psychological
(D) Sociocultural

2. Which of the following are all examples of operations performance objectives?

(A) Choice, flexibility, profit, speed
(B) Cost, Dependability, quality, speed
(C) Customisation, flexibility, profit, quality
(D) Choice, customisation, dependability, profit

3. A car assembly plant had to shut down operations for a day because tyres had not been
delivered. What inventory management strategy at the car assembly plant may have caused
this situation?
(A) Just-in-case
(B) Just-in-time
(C) First-in-first-out
(D) Last-in-first-out

4. Which of the following includes two examples of transforming resources?

(A) Facilities and customers
(B) Materials and customers
(C) Facilities and human resources
(D) Materials and human resources

5. Which of the following is the best method for managing the stock of fresh milk in a
supermarket?
(A) Just‑in‑time
(B) First‑in‑last‑out
(C) Last‑in‑first‑out
(D) First‑in‑first‑out

6. A business wants to minimise the volume of its waste.

Which performance objective is the business trying to achieve?
(A) Cost
(B) Customisation
(C) Flexibility
(D) Speed

7. The term compliance costs refers to expenses associated with meeting:

(A) competitor prices.
(B) legal requirements.
(C) consumer demands.
(D) supplier constraints.
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8. A global business has adopted a strategy which aims to lower the average cost of its product
by increasing output.
What is this strategy called?
(A) Outsourcing
(B) Global pricing
(C) Global Sourcing
(D) Economies of scale

9. A business plans to increase its stock to be ready for the grand opening of five new stores.
This shows the interdependence between which business functions?
(A) Operations and finance
(B) Operations and marketing
(C) Finance and human resources
(D) Human resources and marketing

10. Which performance objective measures how well a product meets the prescribed design
specifications?
(A) Cost
(B) Flexibility
(C) Quality
(D) Speed

11. In which aspect of a business does continuous improvement occur?

A. Quality assurance
B. Legal compliance
C. Just-in-time management
D. Total quality management

12. A manufacturer sells her organic meals only to major supermarkets. Which distribution
channel has the manufacturer chosen?
A. Exclusive
B. Intensive
C. Selective
D. Warehousing

13. Which operations process uses a Gantt chart?

A. Customisation
B. Input
C. Output
D. Transformation

14. Whose interests is an organisation most likely to be representing when it meets with
government to discuss business flexibility, expansion and competitiveness?
A. Employees
B. Employers
C. Society
D. Unions
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15. Which of the following actions is an example of corporate social responsibility?

A. Sponsoring a sporting event
B. Opening a manufacturing plant
C. Introducing a community health program
D. Paying compensation for a work-related injury

16. A business implements a new policy that limits the use of work-related email accounts before
8 am and after 8 pm. Which consideration has most likely led to the development of this
policy?
A. Economic
B. Legal
C. Social
D. Technological

17. Phil goes overseas to a photographic equipment trade fair where he sees other businesses
using more efficient methods of taking passport photos. What is this an example of?
A. Process layout
B. Economies of scale
C. Scanning and learning
D. Inventory management

18. A cake manufacturer buys more sugar as its production output increases. This enables it to
buy the sugar at a lower price per kilogram. What is this an example of?
A. Logistics
B. Just-in-time
C. Global sourcing
D. Economies of scale

19. A soup manufacturer finds it difficult to cope with the increase in demand for soup in winter.
Which performance objective could assist this business to meet the demand?
A. Cost
B. Customisation
C. Dependability
D. Flexibility

20. Sani works for a large manufacturing business. She organises the transport of raw materials
and finished products across Australia. Which of the following describes her area of
responsibility?
A. Logistics
B. Service design
C. Global sourcing
D. Leading edge technology

21. Which of the following lists three examples of transformed resources?

A. Customers, information, materials
B. Facilities, information, technology
C. Customers, human resources, materials
D. Facilities, human resources, technology
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22. A business reduces product defects by using inspections in the production process. This is an
example of quality
A. control.
B. improvement.
C. innovation.
D. production.

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24 and 25
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Short Answer
Question 21 (2014)
(a) Explain why managers may be resistant to change. (4 marks)

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(b) Analyse the use of sequencing and scheduling to improve business operations. (6 marks)

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Question 23 (2015)
North Coast Manufacturing makes customised furniture for its clients.
(a) How could technology influence the transformation process at North Coast Manufacturing? (2
marks)

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(b) North Coast Manufacturing is currently planning a new factory.

Explain TWO factors that it should consider when designing the process layout (4 marks)

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(c) Recommend a method of monitoring the effectiveness of the process layout. (2 marks)

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Question 24 (2016)
A fruit shop has experienced strong growth in its sales of fresh organic fruit since it started to sell
online.
(a) Discuss ONE possible method of inventory management for this business. (4 marks)

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(b) Explain why corporate social responsibility a key concern in operations management for this
business should be. (3 marks)

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Question 21 (2017)
A recently established bank has branches in Australian capital cities and online customers across
Australia. The management of this bank wants to focus on improving operations processes.

(a) Outline the role of operations management in this business. (2 marks)

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(b) Explain how improving operations processes may lead to better customer service. (4 marks)

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(c) Assess ONE operations strategy this business could use to improve its long-term success. (6
marks)

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Question 21 (2018)
A large business repairs trucks that transport heavy loads. The business struggles to complete many
different types of repairs in an efficient manner. It has had difficulty meeting legal regulations and
customer expectations.
(a) Describe TWO transformation processes that the business should implement. (4 marks)

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(b) Recommend TWO quality management strategies that the business can use to overcome its
problems. (6 marks)

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Question 24 (2019)
A juice bar is operating in a shopping centre. The juice is served to customers in plastic cups with
plastic straws. The high sales volume and quick turnover demand an efficient operations process.
(a) Identify TWO transforming resources used in this business (2 marks)

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(b) How does variety impact the transformation process of this business? (4 marks)
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(c) Why might this business be reluctant to become more socially responsible? (4 marks)
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Extended Response (with case studies)

Question 27 (2015)
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Question 27 (2016)
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Question 27 (2017)
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Question 27 (2019)
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Operations: Answers
and Marking Criterion
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Answers to Business Studies Questions: Operations

Multiple Choice
Question Answer
1 C
2 B
3 B
4 C
5 D
6 A
7 B
8 D
9 B
10 C
11 D
12 C
13 D
14 B
15 C
16 C
17 C
18 D
19 D
20 A
21 A
22 A
23 C and D
24 D
25 C
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Short Answer
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Question 23 (2015)
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Question 24 (2016)
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Question 21 (2017)
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Question 21 (2018)
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Question 24 (2019)
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Extended Response (with case studies)

Question 27 (2015)
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Question 27 (2016)
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Question 27 (2017)
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Question 27 (2019)