HSC Business Studies - 2010 Multiple Choice Questions

1 Which of the following actions could a manufacturer take to become more environmentally sustainable in their products?

(A) Reduce packaging

(B) Diversify products

(C) Adopt minimum standards of labour

(D) Research consumer attitudes towards its products

2 Which of the following is a breach of anti-discrimination legislation?

(A) Constantly making fun of a new employee

(B) Offering discounts to holders of senior citizens’ cards

(C) Advertising a job that requires fluency in an Asian language

(D) Paying a man a higher wage than a woman doing the same job

3 A computer game manufacturer uses a copy-protect feature when selling a new game to overseas consumers.
What could be a reason for using this feature?

(A) To cushion the economic cycle

(B) To promote the game in international markets

(C) To protect the manufacturer’s intellectual property

(D) To comply with government policy on protectionism

4 A manufacturer of dog biscuits would like to segment the market.
Which of the following is a segmentation strategy that the manufacturer could implement?

(A) Sourcing cheaper raw materials

(B) Promoting to high income consumers

(C) Changing the colour of the packaging

(D) Rounding prices to the nearest fifty cents

5 Two fashion designers based in New South Wales have decided to jointly fund the marketing of their designs overseas for the next five years. These designers usually compete with each other.
Which of the following best describes the arrangement between the fashion designers?

(A) Global web

(B) Flat structure

(C) Strategic alliance

(D) Vertical integration

6 Freshfood Supermarket has acquired Crispco Supermarket. Freshfood has a policy that customers cannot sample fruit before buying. Staff members at Crispco are reluctant to adopt this policy because customers will be unhappy.
What is causing the reluctance to adopt this policy?

(A) There are labour law variations between Freshfood and Crispco.

(B) There is cultural incompatibility between Freshfood and Crispco.

(C) Freshfood has a marketing orientation and Crispco has a selling orientation.

(D) Freshfood has a customer orientation and Crispco has a production orientation.

7 Under occupational health and safety (OHS) legislation a retail store employee is obliged to

(A) apply for long service leave.

(B) do a fair day’s work for a fair pay.

(C) ensure that customers are satisfied.

(D) be mindful of the wellbeing of other employees.

8 A furniture manufacturer wants to buy timber from an overseas supplier.
What could the manufacturer do to ensure that the supplier complies with minimum standards of labour?

(A) Avoid suppliers that use child workers

(B) Provide the supplier’s employees with lunch

(C) Evaluate the supplier’s forest regeneration practices

(D) Consider the supplier’s compliance with local tax law

9 A producer currently sells direct to consumers.
Which of the following actions will allow the producer to reduce the number of individual orders handled but still maintain overall volume sales?

(A) Creating a website for online ordering

(B) Using an intermediary to sell their products

(C) Installing a new inventory monitoring system

(D) Contracting a trucking company to deliver products

10 Alex leads a team of firefighters. He usually listens to his team’s views before making workplace decisions. However, in times of emergency he expects the team to obey his orders.
Which of the following best describes the management theory Alex is using?

(A) Behavioural

(B) Contingency

(C) Political

(D) Scientific

11 Which of the following is an example of a manager displaying inertia?

(A) Accusing employees of disloyalty

(B) Dismissing a person who requests maternity leave

(C) Using inappropriate cut-off periods when recording sales

(D) Continuing current practices when a new competitor emerges

12 What is a derivative?

(A) An agreement to buy a foreign currency at an agreed price on some day in the future

(B) An assessment of the reliability of a customer’s capacity to make timely payments

(C) A method of protecting the business against seizure of its assets by a foreign government

(D) A method of payment that allows a buyer to gain access to goods immediately and promise to pay later

13 What are TWO consequences of a business using a standardised marketing strategy when operating globally?

(A) Increased economies of scale and reduced market segments

(B) Reduced economies of scale and increased market segments

(C) Complex after-sales service and reduced research and development costs

(D) Simplified after-sales service and increased research and development costs

14 Which set of characteristics best describes the decline stage in the product life cycle?

(A) Decreasing number of competitors, decreasing profits, high brand awareness

(B) Decreasing number of competitors, decreasing profits, low brand awareness

(C) Increasing number of competitors, increasing profits, high brand awareness

(D) Increasing number of competitors, increasing profits, low brand awareness

15 In 2010 an Australian company bought products from the USA.
If the Australian dollar rises in value against the US dollar before the payment is made, which of the following would be true?

(A) The company’s credit risk will increase.

(B) The cost of insuring the product will increase.

(C) The purchase price of the product will be greater.

(D) The company will have more funds available for other uses.

16 Which of the following are BOTH external sources of funds for a business?

(A) Bank loan, mortgage

(B) Retained profits, leasing

(C) Owner’s Equity, mortgage

(D) Retained profits, factoring

17 Which of the following is an appropriate strategy for businesses in managing cultural diversity?

(A) Implementing a team structure

(B) Adopting a pluralist perspective on conflict

(C) Providing signs in different languages for customers

(D) Providing service face-to-face and through e-commerce

18 A furniture manufacturer wants to expand its business using a vertical integration strategy.
Which of the following businesses would it need to purchase?

(A) A timber plantation

(B) A travel agency

(C) A brick manufacturing plant

(D) A competitor’s furniture production facility

19 A business has developed a product new to the market. It wishes to maximise the profit per item sold.
Which pricing strategy should it use?

(A) Loss-leader

(B) Penetration

(C) Price-points

(D) Skimming

20 What might happen as a result of a company having highly undervalued plant and equipment on its balance sheet?

(A) Asset stripping

(B) Growth in equity

(C) Capital expansion

(D) Factoring of liabilities