Download Ass 3 Half-Yearly Examination

HSC Business Studies Half-Yearly Examination
2012
Student Name:
_________________________
AUSTRALIAN INTERNATIONAL SCHOOL
HALF-YEARLY EXAMINATION, 2012
BUSINESS STUDIES
Examination Structure
General Instructions

Reading time: 5 minutes

Working time: 2 hours

Use BLUE or BLACK pen

DO NOT write in PENCIL

Attempt ALL Questions

Write your name on the paper

Section I – Multiple Choice
20 marks
Attempt Questions 1-20
Allow 20 minutes for this section

Section II – Stimulus Based Questions
40 marks
Attempt Questions 21-25
Allow 60 minutes for this section

Section III – Business Report
20 marks
Allow 40 minutes for this section
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HSC Business Studies Half-Yearly Examination
2012
SECTION I: MULTIPLE CHOICE
20 marks
Attempt Questions 1–20
Allow about 20 minutes for this section
Use the multiple-choice answer sheet for Questions 1–20.
1. Teala Fashion has launched a new range of clothes aimed towards women aged
between 18-39 years. Which form of market segmentation is Teala Fashion using?
a)
b)
c)
d)
Demographic
Geographic
Psychological
Behavioural
2. What would be the effect of a depreciation of the Australian dollar on Australian
exporting businesses?
a)
b)
c)
d)
Reduced cost of exports and decreased demand for sales globally
Reduced cost of exports and increased demand for sales globally
Increased cost of exports and decreased demand for sales globally
Increased cost of exports and increased demand for sales globally
3. Cable TV packages offer customers basic products with the option of more
channels at different price levels. What form of pricing strategy would such a
business be using?
a)
b)
c)
d)
Penetration pricing
Price points
Market skimming
Competitive pricing
4. What are two psychological factors influencing consumer behaviour?
a)
b)
c)
d)
Perceptions and social class
Perceptions and attitudes
Income and social class
Income and attitudes
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HSC Business Studies Half-Yearly Examination
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Use the data to answer Question 5 and 6
Kim’s Newsagency
Financial Data for 2010-2011
$
Sales Revenue
Costs of Goods Sold
Gross Profit
438 000
365 000
?
Operating Expenses
Electricity
Rent
Wages
Total Expenses
Net Profit
800
2 000
3 840
6 640
?
5. Which of the following represents the gross and net profits of this business?
a)
b)
c)
d)
$73 000 and $59 720
$73 000 and $66 360
$803 000 and $59 720
$803 000 and $66 360
6. What is the value of an efficiency ratio for this business?
a)
b)
c)
d)
0.8%
1.5%
3.0%
9.1%
7. Alex receives a call from KT mobile phones. The sales person asks Alex about her
current phone plan and her phone call needs. The sales person then suggests a
phone plan which may suit her needs more. What practice is this an example of?
a)
b)
c)
d)
Unethical marketing
Sugging
Creation of needs
Unfair and deceptive conduct
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HSC Business Studies Half-Yearly Examination
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8. Change in work patterns and population trend are reflective of which influence on
employment relations?
a)
b)
c)
d)
Social
Economic
Legal
Technological
9. Which stage of the product life cycle is price skimming normally associated with?
a)
b)
c)
d)
Establishment
Maturity
Steady State
Decline
10. Benefits employers gain from demonstrating corporate social responsibility in
managing staff include:
a)
b)
c)
d)
Improved staff retention and reduced absenteeism as staff feel more valued
Business costs are reduced through reduced claims and fines
Reduced training and marketing costs
All of the above
11. Which of the following is a disadvantage of using debt finance as a source of
funds?
a)
b)
c)
d)
Dividends are not tax deductible
Periodic interest repayments must be met
As interest rates fall your interest repayments also fall
Lenders gain voting rights at annual general meetings
12. To reduce costs, a business employs external contractors to provide payroll
services. Which term describes this strategy?
a)
b)
c)
d)
Outsourcing
Diversification
Strategic alliance
Vertical integration
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HSC Business Studies Half-Yearly Examination
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13. Which of the following is the first step in the market research process?
a)
b)
c)
d)
Determining market needs
Determining information needs
Data analysis and interpretation
Determining how to collect data
14. Which of the following best indicates the solvency of a business?
a)
b)
c)
d)
Current Ratio
Expense Ratio
Net profit Ratio
Debt to equity ratio
15. Which strategy could a business use to effectively manage receivables?
a)
b)
c)
d)
Offering discounts for early payment
Increasing the price of the product
Taking out a short-term loan
Increasing its overdraft
16. Which of the following would be an effective management strategy to improve the
long-term profitability of a business?
a)
b)
c)
d)
Altering the credit terms to ensure early payment of receivables
Improving the efficiency of cost centres
Selling of non-productive assets
Factoring of accounts receivable
17. Which of the following is a good measure of return on owners’ equity?
a)
b)
c)
d)
Gearing
Liquidity
Profitability
Solvency
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HSC Business Studies Half-Yearly Examination
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18. A business has received the following information from their accounting firm.
Ratio
2010
2011
Current Ratio
0.8 : 1
1.4 : 1
Debt to Equity Ratio
1:1
1.5 : 1
Which of the following would describe the financial position of this business in 2011
compared to 2010?
a)
b)
c)
d)
Increased liquidity and increased solvency
Increased liquidity and reduced solvency
Reduced liquidity and increased solvency
Reduced liquidity and reduced solvency
19. Andrea’s Shoe Store has operated since the 1940’s. They advertise weekly in both
newspapers and women’s magazines.
Which of the following best describes Andrea’s Shoe Store’s orientation?
a)
b)
c)
d)
Customer
Marketing
Production
Selling
20. Trattoria Smallgoods Pty Ltd has been operating in an environment of high
domestic interest rates and a rising Australian dollar.
What is the likely impact of this environment on Trattoria Smallgoods Pty Ltd?
a)
b)
c)
d)
Lower import costs and lower costs associated with their domestic debt
Lower import costs and higher costs associated with their domestic debt
Higher import costs and lower costs associated with their domestic debt
Higher import costs and higher costs associated with their domestic debt
End of Section I
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HSC Business Studies Half-Yearly Examination
2012
Section II
Total Marks (40)
Attempt Questions 21 – 25
Allow about 60 minutes for this section
Answer each question in the spaces provided
Questions 21 (10 marks)
Financial reports indicate declining sales for the Bubbly Baby brand of baby food, despite its
low price. Market research indicates that consumers perceive the brand to be of lesser quality
than baby food offered by competitors.
a) Identify ONE pricing strategy that could be used by business
Marking Criteria
 Lists/names on pricing strategy
1
Marks
1
Answers could include: price skimming, price penetration, loss leader, price-points,
prestige pricing
Pricing methods – competition-based, market-based, cost-based – not accepted
b) Explain the importance of the relationship between price and quality to the
managers of the Bubbly Baby brand.
Marking Criteria
 Relates cause and effect of price to quality
 Must link to case study
 Provides characteristics and features of price/quality
 Must link to case study
 Sketches in general terms either price or quality
 May/may not link to case study
3
Marks
3
2
1
Answers could include:
o Price-quality link to consumer product perception and product image and
therefore choice
o Link to case study – BB lower price is causing the product to be perceived as a
lower quality or ‘cheap’
Question 21 continued on the next page
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HSC Business Studies Half-Yearly Examination
2012
Question 21 continued…
c) Analyse TWO product strategies that could be implemented to improve the
sales of Bubbly Baby
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6
Marking Criteria
Draws out and relates implications of the use of TWO product strategies to
improve BB sales
Marks
6
Draws out and relates implications of the use of ONE product strategies to
improve BB sales
AND provides characteristics and features of ONE product strategy to
improve BB sales
Provides characteristics and features of TWO product strategies to improve
BB sales
5
Provides characteristics and features of ONE product strategies to improve
BB sales OR
Sketches in general terms TWO product strategies to improve BB sales
Sketches in general terms ONE product strategies to improve BB sales
AND/OR
Identifies ONE product strategies to improve BB sales
Identifies TWO/ONE product strategies to improve BB sales
3
4
2
1
Answers could include:
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

Packaging- involves the development of a container and graphic design for a product
Benefits include:
- Form of communication
- Attracts consumers attention
- Assists with product display
- Gives a general impression of the product
- Creates the image the business is seeking to portray
Branding- is the name, term, symbol, design or any combination of these that
identifies a specific product and distinguishes it from its competition.
Benefits include:
- Repeat sales due to customer recognition
- Ease of introduction of new products onto the market
- Promotional advantages
- Encourages customer loyalty
- Reduces purchase risk for consumers
- Imagine control and creation
All answers must link to sales and be appropriate to the case study
End of Question 21
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HSC Business Studies Half-Yearly Examination
2012
Question 22 (10 marks)
A chain of fast food restaurants recently entered the Australian market with the establishment
of six restaurants throughout New South Wales. It is currently undertaking an intensive
advertising campaign aimed at teenagers via social networking sites.
(a) Outline ONE ethical issue that may arise from the restaurant chain’s marketing
campaign.
Marking Criteria
 Sketches in general terms ONE ethical issue arising from the restaurants
marketing campaign
 Lists/names ONE ethical issue arising from the restaurants marketing campaign
2
Marks
2
1
Answers could include:
 ethical – truth, accuracy and good taste in advertising, products that may damage
health,
(b) Explain how the restaurant chain’s marketing is interdependent with ONE other
key business function.
Marking Criteria
 Provides characteristics and features of how marketing is interdependent with
ONE other key business function at the restaurant
4
Marks
4

Sketches in general terms how marketing is interdependent with ONE other key
business function at the restaurant
3

Sketches in general terms ONE key business function at the restaurant
2

Recognises and names ONE key business function at the restaurant
1
Answers could include:


Finance the best key business function to select as the restaurant’s marketing activities
rely on the finance department. The finance department sources money and then
allocates that money to other functional areas of the restaurant.
The money allocated to the marketing department is used to fund the activities needed to
carry out their intensive advertising campaign.
Question 22 continued on the next page
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HSC Business Studies Half-Yearly Examination
2012
Question 22 continued…
(c) Evaluate the effectiveness of their proposed marketing campaign.
Marking Criteria
 Uses criteria to make a judgment on the effectiveness of the intensive
advertising campaign through social networking sites
 Links to case study
4
Marks
4


Provides characteristics and features of social media advertising
Links to case study
3


Sketches in general terms social media advertising
May or maynot link to the case study
2

identifies intensive advertising campaign OR social networking sites
1
Answers could include:

Students need to describe the proposed marketing strategy – intensive through social
networking sites – includes facebook, twitter, youtube

Criteria used could include: profit maximization, increased market share, repeat sales,
increased customer loyalty , more chain stores opening (geographical expansion)
End of Question 22
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HSC Business Studies Half-Yearly Examination
2012
Question 23 (5 marks)
In 2009 Telstra decided it needed to undergo a major transformation to meet its customers’
needs and to improve its operations as a business. To support this transformation, the
organization needed to reskill and educate its workforce.
Telstra did not have the time nor did the company feel as though it was well-equipped enough
to upgrade its own learning function to support its business transformation. It called on the
services of Australian-based Accenture to develop a training program as part of its
transformation.
a) Outline the key influence forcing Telstra to outsource.
Marking Criteria
 Sketches in general terms ONE key influence forcing Telstra to outsource

Identifies ONE key influences forcing Telstra to outsource
2
Marks
2
1
Answers could include:
 Economic – economic cycles, structural change, globalization
 Technological influences – communications technology
b) Explain ONE potential risk of outsourcing for Telstra
Marking Criteria
 Relates cause and effect of ONE potential risk of outsourcing for Telstra
3
Marks
3

Provides characteristics and features of ONE potential risk of outsourcing for
Telstra
2

Sketches in general terms ONE potential risk of outsourcing for Telstra
1
Answers could include:
 Consultants may not understand your business culture
 Costs may increase
 Hidden costs
 Morale and motivate may be damaged
 Reduced business learning through reliance on experts
 Loss of security and confidentiality of information
 Difficulty coordinatirng activities
 Difficult to monitoring quality and performance
 Loss of quality
End of Question 23
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HSC Business Studies Half-Yearly Examination
2012
Question 24 (5 marks)
a) Identify TWO stakeholders in human resource management.
Marking Criteria
 Recognizes and names TWO stakeholders in HR management
1
Marks
1
Answers could include:
 Employees, employers, trade unions, society, employer associations
b) Describe TWO social influences on human resource management.
Marking Criteria
 Provides characteristics and features of TWO social influences on HR
management

Provides characteristics and features of ONE social influence
AND
Stretch in general terms ONE social influence
Sketch in general terms ONE social influence AND identifies ONE social
influences
OR
Provides characteristics and features of ONE social influence
Recognizes TWO social influences
OR
Sketches in general terms ONE social influence

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4
Marks
4
3
2
1
Answers could include:



Social influences include – changing working pattern and living standards
Changing work patterns include:
- Part-time work, casualization of labour force, flexibility, work-life balance, career
flexibility and job mobility, increased female participation rate, aging workforce,
early retirement
Living standards include:
- Generally high due to bonuses, fringe benefits, leave and superannuation benefits,
work-life balance shifting and depleting, working hours increasing, increasing
pressure to manage finances, ‘quality jobs’.
End of Question 24
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HSC Business Studies Half-Yearly Examination
2012
Question 25 (10 marks)
13
Marks
Use the following information to answer Question 25.
“Corporate Look Furniture” Profit and Loss Statements
2010
Sales
Cost of Goods Sold
Gross Profit
2011
$
650 000
280 000
?
$
555 000
280 000
?
10 000
90 000
20 000
8 000
110 000
25 000
10 000
140 000
20 000
9 000
58 000
30 000
?
?
Expenses
Rent
Wages
Insurance
Electricity/Phone
Motor Vehicle
Interest on loan
Net Profit
(a)
Calculate the gross profit for “Corporate Look Furniture” in 2011.
Marking Criteria
 Students accurately calculate gross profit for CLF in 2011 - $275 000
(b)
Makes a comment on the state of CLF profitability – does not use the ratio
OR
Presents either the GPR or NPR without comment

Marks
1
Comment on the profitability of “Corporate Look Furniture” over the last two years.
Marking Criteria
 Makes an accurate comment on the state of CLF profitability using either the
GPR or NPR

1
Answers could include:

GPR – GP/Sales – 2010 – 0.57:1, 2011 – 0.49:1, therefore worsening

NPR – NP/Sales – 2010 – 0.16:1, 2011 –0.014:1 – therefore worsening
Question 25 continues on the next page
Marks
2
1
2
HSC Business Studies Half-Yearly Examination
2012
Question 25 continued…
(c)

Students correctly calculate the expense ratio for 2010 and 2011 but do not
comment on it
OR
Students only calculate the expense ratio for ONE year and comment on it
Students calculate the expense ratio of ONE year
OR
Make a comment on an incorrect calculation



Marks
Calculate AND comment on the expense ratio for “Corporate Look Furniture”
between 2010 and 2011.
Marking Criteria
 Students correctly calculate and comment on the expense ratio for CLF between
2010 and 2011
14
3
Marks
3
2
1
Answers could include:

Expense ratio = expenses/sales

2010 – 263/650 = 0.40:1

2011 – 267/555 = 0.48:1
(d)
Recommend ONE profitability and ONE efficiency strategy that “Corporate Look
Furniture” can implement to improve its performance.
Marking Criteria
 Students provide reasons in favour of ONE profitability and ONE efficiency
strategy that CLF can implement to improve their performance.
Recommendations must be clear, justified and linked to the case study
 Students provide reasons in favour of either ONE profitability or ONE
efficiency strategy
AND
 Provides characteristics and features of either ONE profitability or ONE
efficiency strategy
 Sketches in general terms ONE profitability AND ONE efficiency strategy
OR
 Provides reasons in favour of either ONE profitability or ONE efficiency
strategy
 Students identify ONE/TWO strategy/ies
Marks
4
3
2
1
4
HSC Business Studies Half-Yearly Examination
2012
Answers could include:
End of Question 25
End of Section II
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HSC Business Studies Half-Yearly Examination
2012
Section III
20 marks
Attempt Question 26
Allow about 40 minutes for this section
Answer this question in the booklet provided.
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
Prine Ltd is a leading Australian manufacturer of hearing aids. One of the business’s new
hearing aids has been successfully launched in Australia and Prine Ltd now plans to expand
to Europe and North America and outsource some of their operations.
The senior managers of Prine Ltd are seeking advice on the following aspects of their
international expansion:
 Outsourcing options
 Options for global marketing
 Financial issues to be considered
You have been employed as a consultant to prepare a report for Prine Ltd.
In your report:
 Describe TWO outsourcing options for Prine Ltd
 Propose and justify TWO global marketing strategies that Prine Ltd could use when
expanding overseas.
 Assess ONE internal and ONE external source of finance that could be used by Prine
Ltd to enable its expansion
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HSC Business Studies Half-Yearly Examination
2012
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Section III
Question 26 Criteria
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Marks
17–20
Presents a sustained, logical and cohesive business report integrating relevant business
terminology and concepts
Makes effective use of the information provided, demonstrating extensive knowledge and
understanding relevant to the question
Provides characteristics and features of TWO outsourcing options for Prine Ltd
Puts forward for consideration, with detailed supporting arguments TWO global marketing
strategies that Prine Ltd could use when expanding overseas, in detail
Makes a clear judgement about ONE internal and ONE external source of finance to fund the
expansion
13–16
Presents a logical and cohesive business report and uses relevant business terminology and
concepts
Makes some use of the information provided demonstrating knowledge and understanding of
the question
Provides characteristics and features of ONE outsourcing option for Prine Ltd AND sketches in
general terms ONE
Puts forward for consideration, with some supporting arguments TWO global marketing
strategies that Prine Ltd could use when expanding overseas
Makes a judgement about ONE internal and ONE external source of finance to fund the
expansion
9–12
Includes features of a business report and uses some business terminology and concepts
Provides characteristics and features of ONE outsourcing option for Prine Ltd OR sketches in
general terms TWO outsourcing options for Prine Ltd
Provides characteristics and features of ONE global marketing strategy OR sketches in general
terms TWO global marketing strategies
Provides some characteristics and features of effectiveness of ONE internal and ONE external
source of finance to fund the expansion
5–8
Includes some features of a business report and uses basic business terminology
Sketches in general terms ONE outsourcing option for Prine Ltd
Sketches in general terms some aspect of global marketing/marketing
Sketches in general terms some features of sources of finance
1–4
Uses basic terminology
May make reference to outsourcing/human resources
May refer to an aspect of marketing
May make reference to finance
HSC Business Studies Half-Yearly Examination
2012
Possible Answers May include:
In your report:
 Describe TWO outsourcing options for Prine Ltd
o Domestic subcontracting
o Global subcontracting

Propose and justify TWO global marketing strategies that Prine Ltd could use when
expanding overseas.
o Global Branding
o Standardisation
o Customisation
o Global Pricing – customorised/standardized worldwide
o Competitive positioning

Assess ONE internal and ONE external source of finance that could be used by Prine
Ltd to enable its expansion
o internal sources of finance – retained profits
o 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
End of Section III
End of paper
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