HSC Business Studies - 2014 Section I - Multiple-choice questions

Q1-
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

Q2-
A business is planning to increase its market share by merging with a competitor.
What financial objective does this best illustrate?
(A) Growth
(B) Liquidity
(C) Profitability
(D) Solvency

Q3-
Kim is an independent contractor who cleans a school.
Which of the following statements is true regarding Kim’s employment?
(A) She is entitled to four weeks annual leave.
(B) Her employment is subject to award conditions.
(C) She is responsible for paying her own income tax.
(D) She is entitled to maternity leave provided by the school.

Q4-
Grievance procedures are used when
(A) employees are ill.
(B) employees have complaints.
(C) employees are being appraised.
(D) employers want to increase prices.

Q5-

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

Q6-
A new business is experiencing a rapid increase in sales following a series of positive
posts on social media.
Which stages of the product life cycle is the business experiencing?
(A) Growth to maturity
(B) Growth to post maturity
(C) Establishment to growth
(D) Establishment to maturity

Q7-
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

Q8-
A business has shifted from intensive distribution to more selective distribution.
What is the most likely reason for this?
(A) To increase market share
(B) To decrease personal selling strategies
(C) To re-position products as higher quality
(D) To expand the number of intermediaries

Q9-
What is the main reason for a business using penetration pricing?
(A) To maximise profit per unit
(B) To gain short-term market share
(C) To develop a reputation for quality
(D) To take advantage of a lack of competition

Q-10
Which of the following would be found on an income statement?
(A) Accounts payable
(B) Gross profit
(C) Intangibles
(D) Net assets

Q-11
An Australian business sells its Bonza Pies in both Australia and China. Bonza Pies sold
in China are made to a different recipe.
What is this an example of?
(A) Customisation and hedging
(B) Global pricing and standardisation
(C) Customisation and global branding
(D) Global branding and standardisation

Q12
Work patterns in Australia have changed over the past 20 years.
An example of such a change is the decrease in
(A) casualisation.
(B) part-time positions.
(C) female participation.
(D) full-time male participation.

Q-13
What is a reason for a business to use a democratic leadership style?
(A) It has a project with a tight deadline.
(B) It has experienced, highly skilled employees.
(C) There is a need for more standardised products.
(D) There is a potentially dangerous work situation.

Q-14
Why would a business choose debentures as a source of funding?
(A) To reduce financial risk
(B) To provide security over assets
(C) To retain ownership and control
(D) To obtain cheap, short-term finance

Q-15
What is the most likely result of a business achieving economies of scale?
(A) Greater flexibility
(B) Higher sales price per unit
(C) Greater efficiencies in production
(D) Higher average costs of production

Q-16
What is the most likely impact of a recession on human resources?
(A) Increase in wages
(B) Increase in overtime
(C) Decrease in involuntary separation
(D) Decrease in employee bargaining power

Q-17
Which of the following is an example of legal compliance for a sports store?
(A) Paying taxes on time
(B) Offsetting carbon emissions
(C) Induction of new employees
(D) Paying dividends to shareholders