Section I

2020
20 marks
Attempt Questions 1–20
Allow about 35 minutes for this section

Use the multiple-choice answer sheet for Questions 1–20.

Yr 11 Yearly Examination
Student: 1 Which key business function is concerned with the transformation of inputs into outputs?

(A) Finance
(B) Operations
(C) Marketing

Business Studies 2
(D) Human Resources

A couple are hoping to establish a new business.

Which of the following represents an advantage of this establishment option?

(A) The business owners will acquire existing customers, staff and suppliers
General Instructions (B) The business owners are purchasing a business name with strong brand awareness
(C) The business owners may encounter resistance from staff loyal to the previous owners
• Reading Time – 5 Minutes
(D) The business owners will not have to pay for goodwill as the business has no
• Working Time – 2 Hours established reputation or brand image
• Write using a black pen in the booklets provided.
3 Controlling, as a role of management can be best described as the:
• NESA approved calculators may be used
(A) ability to determine the tasks and duties of employees in the workforce.
Examination Details
(B) process of reviewing the performance of the business and determining comparing it
against actual plans.
Total marks – 70
(C) ability to determine how goods and services will be produced in the business.

Section I Multiple Choice 20 marks (pages 2-6) (D) process of establishing goals for the business and determining which area of the
business can best achieve these goals.
• Attempt Questions 1–20
• Allow about 35 minutes for this section
4 C&F Sports holds 25% of the sales within the sporting goods industry.

Section II Short Response 30 marks (pages 7-11) Which business goal has C&F Sports achieved?
• Attempt Questions 21–23
(A) Profits
• Allow about 50 minutes for this section
(B) Share price
Section III Business Report 20 marks (page 13) (C) Market share
• Attempt Question 24 (D) Environmental
• Allow about 35 minutes for this section
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 9 The managers at Sunrise Communications encourage staff to work from home one day a
5 Which of the following is an example of an opportunity for a fish and chips shop? week.

(A) Updated kitchen equipment Which external influence has assisted this change?
(B) Low inflation
(A) Technology
(C) Inexperienced chefs
(B) Business culture
(D) Restrictions with fishing laws
(C) Resources
(D) Legal
6 How is the break-even point calculated?

(A) The point where total assets - total liabilities = total equity 10 Which of the following is true in relation to stakeholders?
(B) The point where total revenue = total costs
(A) Competitors are not stakeholders
(C) The point where total assets = total liabilities
(B) Stakeholders must have shares in the business
(D) The point where total revenue = total variable costs
(C) Employees are internal stakeholders
(D) The environment is not considered a stakeholder
7 George encourages his staff to work in teams to complete tasks and values their
contributions for improving business processes.
11 QRX Pty Ltd makes motorcycle safety gear. Its sales are low and there is little customer
Which leadership style is George adopting? awareness. It has no formal organisational structure.
(A) Autocratic At which stage of the business life cycle is QRX Pty Ltd most likely at?
(B) Democratic
(A) Establishment
(C) Strategic
(B) Growth
(D) Transformational
(C) Maturity
(D) Post-maturity
8 Suzie and Jo are thinking of starting a new business. They have decided to start as a
partnership.
12 Which elements work together to form the marketing mix?
Which of the following statements is correct?
(A) Product, price, promotion, purchasing
(A) They will share the profits of the business, but not the costs and decision making. (B) Purchasing, product, price, procedure
(B) Their business name will need to include the letters Pty Ltd. (C) Place, purchasing, price, product
(C) They will have unlimited liability. (D) Product, price, promotion, place
(D) They will have to pay company tax on any profits.

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Use the following information to answer Questions 13 to 15. 17 If a business has less than 5 employees including the owner, how is it best defined?

Financial information for Diana’s Fish and Chips Takeaway. (A) A small business
(B) A large sized non-manufacturing business
Gross profit $80 0000 Sales $100 000
Expenses ? Net profit $20 000 (C) A medium sized manufacturing business
Assets $90 000 Owner’s equity $20 000 (D) A micro business
Liabilities ?
18 Andrea has looked at the strengths and weaknesses of her business.
13 In which financial statements would you find the liabilities of a business?
How can this be described?
(A) Cash flow statement
(A) A vision statement
(B) Income statement
(B) A situational analysis
(C) Balance sheet
(C) A strategic goal
(D) Profit & loss statement
(D) A tactical objective

14 Based on the information provided, what are the expenses for this business? 19 Which of the following statements is true of a hierarchical management structure?

(A) $80 000 (A) There is a narrow span of control

(B) $20 000 (B) There is a short chain of command
(C) $70 000 (C) There is a wide span of control
(D) $60 000 (D) There are few management levels

15 Based on the information provided, what are the liabilities for this business? 20 Which of the following represents a cause and consequence for a sole trader who is
experiencing involuntary business cessation?
(A) $80 000
(B) $20 000 Cause Consequence

(C) $70 000 (A) The owner chooses to retire The assets of the business are placed
into liquidation
(D) $60 000
(B) The owner is unable to repay the The owner faces the possibility of
16 Graham has just turned 65 and is leaving the business after 42 years of service in the sales debts of the business being fined
department.
(C) Creditors of the business force the The business is placed into
owner to cease trading involuntary administration
Which of the following statements most likely describes this action?
(D) Debtors do not repay funds owed to The business is placed into voluntary
(A) Voluntary separation in the form of resignation the business administration
(B) Involuntary separation in the form of retrenchment
(C) Involuntary separation in the form of dismissal
(D) Voluntary separation in the form of retirement

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2 0 20 P R E L I M I N A R Y E X A M I N AT I O N Question 21 (15 marks)
Business Studies
Enviro Beauty is an Australian based producer of soaps and creams that started operating in 2015. They
Section II use environmentally friendly ingredients and are stocked in boutique stores around the country aimed at
people earning a high income that are environmentally conscious.
30 marks
Attempt Questions 21–23 Enviro Beauty have just been given a large contract to supply an upmarket, luxury hotel chain with soaps
Allow about 50 minutes for this section and creams and so will need to hire manufacturing staff, sales staff and technology/administration staff.

Answer the questions in the spaces provided. These spaces provide guidance for the
(a) Outline ONE source of information that could be used in their business planning 2
expected length of response.

Extra writing space is provided on page 12. If you use this space, clearly indicate which
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question you are answering.
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(b) Explain the operations process of Enviro Beauty 4

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(c) Explain why recruitment & training are important to the human resources process of Enviro
Beauty
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(d) Identify ONE target market of Enviro Beauty
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(e) Explain how price and product (i.e. marketing mix) can be used to address the target market
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Question 22 (8 marks)
4
Thanks for Mutton is a seller of specialty pet food. They have one manager, two sales staff and six production
assistants (manufacturing the product). The flavours are changed depending on what is in season at the time
and are based on the ideas that staff suggest.
Their customers are usually happy to wait for their orders because of the high quality.
However, a big client has made some large orders and requires them to be delivered much more quickly than
usual. They are not worried about what is in season and just want a large amount of product made quickly.
(a) With reference to this business, outline ONE skill essential for effective management 2
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Management are seeking advice about the most suitable management approach for their business.
(b) Discuss the use of a classical management approach for Thanks for Mutton 3
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(c) Discuss the use of a behavioural management approach for Thanks for Mutton 3
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Question 23 (7 marks)

The information below refers to financial data from Quantum Technologies in 2019, a small tech
consultancy business based in Bankstown. Section II Extra writing space

Purchases $52 000 If you use this space, clearly indicate which question you are answering.
Sales $280 000
Expenses $112 000
Opening Stock $80 000
Closing Stock $22 000
How to calculate COGS: Opening stock + purchases – closing stock

(a) Identify the financial statement that this information would be from. 1

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(b) Calculate the Gross Profit and Net Profit for this business. Show all working. 4

Gross profit:

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Net profit:

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(c) Outline the purpose of the balance sheet 2

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2 0 20 P R E L I M I N A R Y E X A M I N AT I O N

Business Studies
Section III

20 marks
Attempt Question 24
Allow about 35 minutes for this section

Answer the question in the Section III Writing Booklet. Extra writing booklets are available.

Your answer will be assessed on how well you:

■ demonstrate knowledge and understanding relevant to the question
■ communicate using relevant business terminology and concepts
■ present a sustained, logical and cohesive response in the form of a business report

Question 24 (20 marks)

Hardwick and Co, are a consultancy company who provide advice to small businesses. They are
writing a case study about the process of writing a business plan and have asked you to write a
report on your experience of planning for a business.

In your report, answer the following questions:

- Outline the importance of creating a business plan based on your experience

- Outline the prime function of your business
- Explain how you used market research* to plan for your business
- Explain ONE challenge you faced in the finance, operations, human resources and/or
marketing sections and discuss the process you went through to address it

Remember to use headings, including an executive summary in your business report

*note ‘market research’ can include primary, secondary and situational analysis (SWOT) and
how you used it

End of paper

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