Skill Align HSC Business Studies — Free Online Pack 0
Course 15040. One original examination with solutions, marking guidance and revision diagnostics.
- Paper
- Examination 1
- Reading
- 5 minutes
- Writing
- 3 hours
- Assessment
- 100 marks attempted (120 authored marks offered)
Where a financial-ratio calculation is required, the relevant formula is printed with that question.
Section I — Objective-response questions
20 marks. Attempt Questions 1–20. Select the alternative A, B, C or D that best answers each question. Allow about 35 minutes for this section.
Question 1
1 mark- Its liquidity must increase
- Its gross profit must fall
- Its share capital increases
- Its gearing increases
Question 2
1 mark- Lower input prices are guaranteed
- Longer replenishment lead times
- Greater dependence on one supplier
- Reduced supply disruption risk
Question 3
1 mark- Net profit improves
- Net profit declines
- Expenses consume a larger share of sales
- Gross profit must increase
Question 4
1 mark- E-marketing
- Personal selling
- Publicity
- Advertising
Question 5
1 mark- Team-based monetary reward
- Individual monetary reward
- Team-based non-monetary reward
- Individual non-monetary reward
Question 6
1 mark- Quality
- Speed
- Cost
- Flexibility
Question 7
1 mark- Deceptive and misleading advertising
- Exclusive dealing
- Price discrimination
- Sugging
Question 8
1 mark- Negotiation
- Mediation
- Involvement of courts and tribunals
- Grievance procedure
Question 9
1 mark[table:Average employees during each quarter] Quarter | Average headcount Q1 | 80 Q2 | 100 Q3 | 125 [/table]
- Both resignations and the turnover rate rose
- The turnover rate stayed at 10% in all three quarters
- Both resignations and the turnover rate fell
- Resignations rose, but the quarterly turnover rate fell
Question 10
1 mark- Quality control
- Quality circles
- Quality assurance
- Quality improvement
Question 11
1 mark- Strength
- Threat
- Weakness
- Opportunity
Question 12
1 mark- Penetration pricing
- Loss-leader pricing
- Price skimming
- Cost-plus pricing
Question 13
1 mark- Legal regulation
- Globalisation
- Environmental sustainability
- Corporate social responsibility
Question 14
1 mark- Access to a wider external applicant pool
- Applicants already understand the business
- New ideas from outside the business
- No vacancy is created elsewhere in the business
Question 15
1 mark- Demographic
- Behavioural
- Geographic
- Psychographic
Question 16
1 mark[table:Lumen Tours cash forecast ($000)] Cash item | July | August | September Receipts | 45 | 30 | 90 Payments | 70 | 60 | 40 [/table]
- July; $25 000
- September; $45 000
- No finance is needed because September closes positively
- August; $5 000
Question 17
1 mark- Job design
- Training and development
- Performance management
- Rewards
Question 18
1 mark- 0.67:1
- 1.0:1
- 1.5:1
- 2.5:1
Question 19
1 mark- Appropriate use of business funds
- Independent auditing of accounts
- Ethical and accurate financial reporting
- Tax compliance
Question 20
1 mark- Reduce printing from five days to three days
- Reduce mount preparation from three days to one day
- Reduce artwork approval from two days to one day
- Reduce installation from two days to one day
Section II — Short-answer questions
40 marks. Attempt Questions 21–24 and all parts. Write in the ruled spaces, which indicate the expected response length. Each part is labelled with its question number and part letter. Show calculations and use the supplied business evidence where relevant. Allow about 1 hour and 15 minutes for this section.
Question 21
10 marksEchoCycle assembles commuter e-bikes. Weekly demand is 480 bikes, but the plant produces 420. Battery deliveries vary by two days, 7% of completed bikes require brake adjustment, and workers currently assemble one bike from start to finish.
Question 22
10 marksBentoBloom delivers plant-based lunches to office precincts. A survey of 600 workers found 58% value delivery reliability, 24% value low price and 18% value menu variety. Trial subscriptions are high, but only 35% renew after one month.
Question 23
10 marksCoralCare Clinics reports sales revenue of $3.20 million, cost of goods sold of $1.12 million, current assets of $840 000 and current liabilities of $600 000. Its current assets include $260 000 of slow-moving wellness products. A financial summary is shown in the chart.
Question 24
10 marksRedgum Logistics employs 140 drivers and depot staff. Annual staff turnover rose from 14% to 27%, absenteeism averages 9 days per employee, and customer complaints about missed delivery windows have doubled. Exit interviews cite unpredictable rosters and limited supervisor feedback.
Section III — Business report
20 marks. Attempt Question 25. Write approximately 800 words in a business report format. Allow about 35 minutes for this section.
Question 25
20 marksTidalLeaf is an Australian surfwear business selling online and through 18 stores. Returns have risen from 6% to 11% after stitching was outsourced to a low-cost supplier. Customer research shows strong demand for repairable garments, but recent social-media comments question the brand's environmental claims. Sales revenue is $8.4 million, current assets are $1.9 million and current liabilities are $1.6 million. Cash receipts peak in summer while supplier payments are even across the year. Staff turnover is 29%, and store teams report inconsistent product training. Management can invest either in supplier quality certification and traceability or in a national price promotion; it can also introduce cross-functional product teams and a seasonal cash budget.
Section IV — Extended response
20 marks. Attempt either Question 26 or Question 27. Write approximately 800 words. Allow about 35 minutes for this section.
Question 26
20 marksQuestion 27
20 marksWorked Solutions And Marking Guide
General marking principles
- Indicative answers and model responses are examples, not the only acceptable responses.
- Accept accurate alternative reasoning and any relevant, accurately applied business case study/studies and contemporary business issues in Section IV.
- Award marks only for evidence requested by the prompt. Do not require unstated assumptions or exact values where only a direction or relationship is requested.
- For calculations, accept equivalent working and appropriate rounding when the method and interpretation are correct.
- Use the best-fitting performance range for extended responses; do not convert holistic bands into a mechanical checklist.
Section I — Objective-response questions Question 1
Answer: Its gearing increases
Debt rises relative to owners' equity.
Mark allocation
- A: 'Its liquidity must increase' concerns the capacity to meet short-term obligations rather than the stated objective or ratio. The stimulus instead shows that debt rises relative to owners' equity.
- B: 'Its gross profit must fall' uses an absolute statement that is not justified by the limited information given. In this scenario, debt rises relative to owners' equity.
- C: 'Its share capital increases' concerns owners' funds rather than the financing or performance relationship asked about; however, the stimulus shows that debt rises relative to owners' equity.
- D: Correct. Debt rises relative to owners' equity.
Section I — Objective-response questions Question 2
Answer: Reduced supply disruption risk
Supplier diversification improves continuity when one delivery path fails.
Mark allocation
- A: 'Lower input prices are guaranteed' assumes supplier diversification guarantees a price outcome rather than addressing the stated continuity problem. The stimulus instead shows that supplier diversification improves continuity when one delivery path fails.
- B: 'Longer replenishment lead times' would worsen supply responsiveness rather than provide the continuity benefit sought from local suppliers. In this scenario, supplier diversification improves continuity when one delivery path fails.
- C: 'Greater dependence on one supplier' describes single-supplier concentration, the opposite of appointing two suppliers; however, the stimulus shows that supplier diversification improves continuity when one delivery path fails.
- D: Correct. Supplier diversification improves continuity when one delivery path fails.
Section I — Objective-response questions Question 3
Answer: Net profit improves
A lower share of sales is absorbed by expenses.
Mark allocation
- A: Correct. A lower share of sales is absorbed by expenses.
- B: 'Net profit declines' reverses the expected profit effect when expenses absorb a smaller proportion of unchanged sales. The stimulus instead shows that a lower share of sales is absorbed by expenses.
- C: 'Expenses consume a larger share of sales' reverses the stated fall in the expense ratio. In this scenario, a lower share of sales is absorbed by expenses.
- D: 'Gross profit must increase' confuses operating-expense control with gross profit, which depends on sales and cost of goods sold; however, the stimulus shows that a lower share of sales is absorbed by expenses.
Section I — Objective-response questions Question 4
Answer: E-marketing
The business uses customer data and a digital channel to prompt a purchase.
Mark allocation
- A: Correct. The business uses customer data and a digital channel to prompt a purchase.
- B: 'Personal selling' uses direct salesperson-customer interaction rather than the channel in the scenario. The stimulus instead shows that the business uses customer data and a digital channel to prompt a purchase.
- C: 'Publicity' relies on unpaid media attention rather than the controlled promotional method described. In this scenario, the business uses customer data and a digital channel to prompt a purchase.
- D: 'Advertising' uses paid, controlled mass communication to inform or persuade a target market; however, the stimulus shows that the business uses customer data and a digital channel to prompt a purchase.
Section I — Objective-response questions Question 5
Answer: Team-based monetary reward
Payment is linked to collective performance measures.
Mark allocation
- A: Correct. Payment is linked to collective performance measures.
- B: 'Individual monetary reward' links payment to one employee's performance rather than the whole shift's results. The stimulus instead shows that payment is linked to collective performance measures.
- C: 'Team-based non-monetary reward' recognises a team without direct payment, unlike the stated cash bonus. In this scenario, payment is linked to collective performance measures.
- D: 'Individual non-monetary reward' recognises one employee without direct payment rather than paying a team bonus; however, the stimulus shows that payment is linked to collective performance measures.
Section I — Objective-response questions Question 6
Answer: Cost
Using fewer material and labour inputs to achieve the same output and quality lowers waste and unit cost.
Mark allocation
- A: 'Quality' concerns how consistently an output meets its required standard. The stimulus instead shows that using fewer material and labour inputs to achieve the same output and quality lowers waste and unit cost.
- B: 'Speed' concerns how quickly an operation responds or completes production. In this scenario, using fewer material and labour inputs to achieve the same output and quality lowers waste and unit cost.
- C: Correct. Using fewer material and labour inputs to achieve the same output and quality lowers waste and unit cost.
- D: 'Flexibility' concerns how readily an operation changes volume, variety or delivery; however, the stimulus shows that using fewer material and labour inputs to achieve the same output and quality lowers waste and unit cost.
Section I — Objective-response questions Question 7
Answer: Deceptive and misleading advertising
The environmental claim could create a false impression for consumers.
Mark allocation
- A: Correct. The environmental claim could create a false impression for consumers.
- B: 'Exclusive dealing' restricts a buyer or seller from dealing with competing businesses. The stimulus instead shows that the environmental claim could create a false impression for consumers.
- C: 'Price discrimination' charges different customers different prices for the same product for reasons unrelated to cost. In this scenario, the environmental claim could create a false impression for consumers.
- D: 'Sugging' uses selling under the guise of market research; however, the stimulus shows that the environmental claim could create a false impression for consumers.
Section I — Objective-response questions Question 8
Answer: Involvement of courts and tribunals
A tribunal is formally involved and makes a binding determination.
Mark allocation
- A: 'Negotiation' involves the parties seeking agreement directly rather than using the process described. The stimulus instead shows that a tribunal is formally involved and makes a binding determination.
- B: 'Mediation' uses a neutral third party to facilitate agreement without imposing a binding decision. In this scenario, a tribunal is formally involved and makes a binding determination.
- C: Correct. A tribunal is formally involved and makes a binding determination.
- D: 'Grievance procedure' uses an internal staged process to raise and resolve a workplace complaint; however, the stimulus shows that a tribunal is formally involved and makes a binding determination.
Section I — Objective-response questions Question 9
Answer: Resignations rose, but the quarterly turnover rate fell
Turnover is 8/80 = 10%, 9/100 = 9% and 10/125 = 8%. Rising resignation counts coexist with a falling rate because the workforce grew faster.
Mark allocation
- A: For this stimulus, 'Both resignations and the turnover rate rose' compares counts without allowing for the growing workforce denominator.
- B: For this stimulus, 'The turnover rate stayed at 10% in all three quarters' applies the first quarter's rate to later quarters despite changed headcounts.
- C: For this stimulus, 'Both resignations and the turnover rate fell' reverses the resignation-count trend shown by the graph.
- D: Correct. Turnover is 8/80 = 10%, 9/100 = 9% and 10/125 = 8%. Rising resignation counts coexist with a falling rate because the workforce grew faster.
Section I — Objective-response questions Question 10
Answer: Quality control
The finished output is inspected against predetermined standards.
Mark allocation
- A: Correct. The finished output is inspected against predetermined standards.
- B: 'Quality circles' uses employee groups to identify and propose solutions to quality problems. The stimulus instead shows that the finished output is inspected against predetermined standards.
- C: 'Quality assurance' builds quality into processes, whereas the scenario does not describe that system. In this scenario, the finished output is inspected against predetermined standards.
- D: 'Quality improvement' uses ongoing measurement and incremental process change to prevent recurring defects; however, the stimulus shows that the finished output is inspected against predetermined standards.
Section I — Objective-response questions Question 11
Answer: Threat
It is an external development that may reduce the studio's performance.
Mark allocation
- A: 'Strength' is an internal capability or advantage of the business. The stimulus instead shows that it is an external development that may reduce the studio's performance.
- B: Correct. It is an external development that may reduce the studio's performance.
- C: 'Weakness' is an internal limitation of the business. In this scenario, it is an external development that may reduce the studio's performance.
- D: 'Opportunity' is a favourable external possibility, not an internal business characteristic; however, the stimulus shows that it is an external development that may reduce the studio's performance.
Section I — Objective-response questions Question 12
Answer: Price skimming
A high introductory price captures buyers willing to pay before later reductions.
Mark allocation
- A: 'Penetration pricing' uses a low introductory price to build market share quickly. The stimulus instead shows that a high introductory price captures buyers willing to pay before later reductions.
- B: 'Loss-leader pricing' sets one item very low to attract customers who may buy other products. In this scenario, a high introductory price captures buyers willing to pay before later reductions.
- C: Correct. A high introductory price captures buyers willing to pay before later reductions.
- D: 'Cost-plus pricing' adds a margin to cost and does not respond to the market evidence in the scenario; however, the stimulus shows that a high introductory price captures buyers willing to pay before later reductions.
Section I — Objective-response questions Question 13
Answer: Corporate social responsibility
The additional audit assesses employee welfare against higher ethical sourcing standards after legal compliance has been confirmed. This addresses corporate social responsibility.
Mark allocation
- A: 'Legal regulation' concerns compliance with enforceable rules; compliance has already been confirmed, whereas the additional audit applies higher ethical sourcing standards. The stimulus instead shows that the additional audit assesses employee welfare against higher ethical sourcing standards after legal compliance has been confirmed. This addresses corporate social responsibility.
- B: 'Globalisation' concerns the integration of international markets and production; the overseas supplier provides that context, but the audit targets the treatment of workers. In this scenario, the additional audit assesses employee welfare against higher ethical sourcing standards after legal compliance has been confirmed. This addresses corporate social responsibility.
- C: 'Environmental sustainability' concerns environmental resource use, waste and pollution; the audit instead examines workers' wages and workplace safety; however, the stimulus shows that the additional audit assesses employee welfare against higher ethical sourcing standards after legal compliance has been confirmed. This addresses corporate social responsibility.
- D: Correct. The additional audit assesses employee welfare against higher ethical sourcing standards after legal compliance has been confirmed. This addresses corporate social responsibility.
Section I — Objective-response questions Question 14
Answer: Applicants already understand the business
Internal applicants bring organisational knowledge and need less induction.
Mark allocation
- A: 'Access to a wider external applicant pool' is an advantage of external recruitment rather than advertising only to current employees. The stimulus instead shows that internal applicants bring organisational knowledge and need less induction.
- B: Correct. Internal applicants bring organisational knowledge and need less induction.
- C: 'New ideas from outside the business' is an advantage of external recruitment rather than appointing from the existing workforce. In this scenario, internal applicants bring organisational knowledge and need less induction.
- D: 'No vacancy is created elsewhere in the business' ignores the vacancy that can arise when the successful internal applicant leaves their former role; however, the stimulus shows that internal applicants bring organisational knowledge and need less induction.
Section I — Objective-response questions Question 15
Answer: Behavioural
Customers are grouped by the benefits and usage context they seek.
Mark allocation
- A: 'Demographic' segments customers using population characteristics such as age, income or occupation. The stimulus instead shows that customers are grouped by the benefits and usage context they seek.
- B: Correct. Customers are grouped by the benefits and usage context they seek.
- C: 'Geographic' segments customers by location. In this scenario, customers are grouped by the benefits and usage context they seek.
- D: 'Psychographic' segments customers by lifestyle, personality or values; however, the stimulus shows that customers are grouped by the benefits and usage context they seek.
Section I — Objective-response questions Question 16
Answer: August; $5 000
Closing balances before new finance are July $25 000, August −$5 000 and September $45 000. The first deficit is $5 000 in August, even though the final month closes positively.
Mark allocation
- A: For this stimulus, 'July; $25 000' mistakes July's positive closing cash balance for a funding deficit.
- B: For this stimulus, 'September; $45 000' mistakes the final positive balance for a shortfall and misses August's earlier deficit.
- C: For this stimulus, 'No finance is needed because September closes positively' uses the final balance to ignore the earlier August cash shortage.
- D: Correct. Closing balances before new finance are July $25 000, August −$5 000 and September $45 000. The first deficit is $5 000 in August, even though the final month closes positively.
Section I — Objective-response questions Question 17
Answer: Training and development
A realistic simulation develops the current skills employees need to perform emergency procedures.
Mark allocation
- A: 'Job design' concerns how tasks, responsibility and authority are organised within a role. The stimulus instead shows that a realistic simulation develops the current skills employees need to perform emergency procedures.
- B: Correct. A realistic simulation develops the current skills employees need to perform emergency procedures.
- C: 'Performance management' uses objectives, evidence and feedback to assess and improve employee performance. In this scenario, a realistic simulation develops the current skills employees need to perform emergency procedures.
- D: 'Rewards' uses monetary or non-monetary returns to recognise and motivate employees; however, the stimulus shows that a realistic simulation develops the current skills employees need to perform emergency procedures.
Section I — Objective-response questions Question 18
Answer: 1.5:1
$240 000 divided by $160 000 equals 1.5.
Mark allocation
- A: '0.67:1' is a numerical alternative that is inconsistent with the stated values or prescribed calculation. The stimulus instead shows that $240 000 divided by $160 000 equals 1.5.
- B: '1.0:1' is a numerical alternative that is inconsistent with the stated values or prescribed calculation. In this scenario, $240 000 divided by $160 000 equals 1.5.
- C: Correct. $240 000 divided by $160 000 equals 1.5.
- D: '2.5:1' is a numerical alternative that is inconsistent with the stated values or prescribed calculation; however, the stimulus shows that $240 000 divided by $160 000 equals 1.5.
Section I — Objective-response questions Question 19
Answer: Ethical and accurate financial reporting
Delaying a known expense misrepresents business performance.
Mark allocation
- A: 'Appropriate use of business funds' concerns stewardship of money rather than truthful recognition of a known expense. The stimulus instead shows that delaying a known expense misrepresents business performance.
- B: 'Independent auditing of accounts' concerns external assurance rather than management's duty to record the invoice accurately. In this scenario, delaying a known expense misrepresents business performance.
- C: Correct. Delaying a known expense misrepresents business performance.
- D: 'Tax compliance' concerns meeting taxation obligations rather than the reporting-period manipulation described; however, the stimulus shows that delaying a known expense misrepresents business performance.
Section I — Objective-response questions Question 20
Answer: Reduce printing from five days to three days
The original duration is 2 + max(5, 3) + 2 = 9 days. Reducing printing to three days makes it 2 + max(3, 3) + 2 = 7 days; cutting the shorter parallel activity does not shorten the project.
Mark allocation
- A: Correct. The original duration is 2 + max(5, 3) + 2 = 9 days. Reducing printing to three days makes it 2 + max(3, 3) + 2 = 7 days; cutting the shorter parallel activity does not shorten the project.
- B: For this stimulus, 'Reduce mount preparation from three days to one day' leaves five-day printing as the controlling parallel activity, so the project still takes nine days.
- C: For this stimulus, 'Reduce artwork approval from two days to one day' saves only one day, giving eight days overall.
- D: For this stimulus, 'Reduce installation from two days to one day' saves only one day after both parallel activities finish.
Section II — Short-answer questions Question 21
(a) Identifies a relevant objective such as dependability or quality. Links the objective to variable battery deliveries or the 7% rework rate. Explains how improvement supports output or customer performance.
Identifies a relevant objective such as dependability or quality. Links the objective to variable battery deliveries or the 7% rework rate. Explains how improvement supports output or customer performance.
(b) Explains a plausible specialised assembly arrangement. Connects specialisation to higher output or consistent task performance. Recognises a trade-off such as boredom, inflexibility or coordination risk.
Explains a plausible specialised assembly arrangement. Connects specialisation to higher output or consistent task performance. Recognises a trade-off such as boredom, inflexibility or coordination risk.
(c) Recommends a feasible process, supply or quality strategy. Applies the 480-demand and 420-output capacity gap. Explains how the strategy improves throughput, dependability or quality. Provides a reasoned judgement that addresses a cost or implementation risk.
Recommends a feasible process, supply or quality strategy. Applies the 480-demand and 420-output capacity gap. Explains how the strategy improves throughput, dependability or quality. Provides a reasoned judgement that addresses a cost or implementation risk.
Mark allocation
- Apply the best-fitting descriptor for each part. Indicative evidence is non-exhaustive; do not transfer unused marks between parts.
Detailed marking criteria
Part a (3 marks)
Full marks require a response to "Explain one operations performance objective that EchoCycle should prioritise." that shows the required cause-and-effect or relationship and demonstrates all of the following: Identifies a relevant objective such as dependability or quality.; Links the objective to variable battery deliveries or the 7% rework rate.; Explains how improvement supports output or customer performance.. Apply the best-fitting quality descriptor when assessing the response. 3 marks: provides a sound, well-supported response that addresses the command verb; 2 marks: provides a limited response with some relevant detail; 1 mark: provides a basic relevant statement.
Acceptable alternatives: Accept accurate equivalent wording or working that answers the stated prompt using the supplied evidence.
Do not credit by itself: Provides a general syllabus statement without addressing the named business evidence or the command verb.
Part b (3 marks)
Full marks require a response to "Analyse how task specialisation could affect EchoCycle's transformation process." that identifies relevant components and relationships and draws an implication and demonstrates all of the following: Explains a plausible specialised assembly arrangement.; Connects specialisation to higher output or consistent task performance.; Recognises a trade-off such as boredom, inflexibility or coordination risk.. Apply the best-fitting quality descriptor when assessing the response. 3 marks: provides a sound, well-supported response that addresses the command verb; 2 marks: provides a limited response with some relevant detail; 1 mark: provides a basic relevant statement.
Acceptable alternatives: Accept accurate equivalent wording or working that answers the stated prompt using the supplied evidence.
Do not credit by itself: Provides a general syllabus statement without addressing the named business evidence or the command verb.
Part c (4 marks)
Full marks require a response to "Recommend an operations strategy to reduce the gap between demand and output. Justify your recommendation using the stimulus." that proposes a suitable strategy and justifies it against the named evidence or trade-off and demonstrates all of the following: Recommends a feasible process, supply or quality strategy.; Applies the 480-demand and 420-output capacity gap.; Explains how the strategy improves throughput, dependability or quality.; Provides a reasoned judgement that addresses a cost or implementation risk.. Apply the best-fitting quality descriptor when assessing the response. 4 marks: provides a detailed, well-supported response that fully addresses the command verb; 3 marks: provides a sound response supported by relevant evidence; 2 marks: provides a limited response with some relevant detail; 1 mark: provides a basic relevant statement.
Acceptable alternatives: Accept accurate equivalent wording or working that answers the stated prompt using the supplied evidence.
Do not credit by itself: Provides a general syllabus statement without addressing the named business evidence or the command verb.
Section II — Short-answer questions Question 22
(a) Selects reliable delivery as the strongest survey result. Uses the 58% evidence. Explains how positioning can differentiate the subscription offer.
Selects reliable delivery as the strongest survey result. Uses the 58% evidence. Explains how positioning can differentiate the subscription offer.
(b) Identifies a plausible cause such as service failure, value or menu fit. Explains a research method or evidence needed to test the cause. Connects the finding to renewal behaviour rather than initial trial.
Identifies a plausible cause such as service failure, value or menu fit. Explains a research method or evidence needed to test the cause. Connects the finding to renewal behaviour rather than initial trial.
(c) Recommends a coherent product, promotion or distribution response. Applies reliability or renewal evidence from the stimulus. Explains how the response supports retention and positioning. Justifies why targeted value creation is preferable to a broad discount.
Recommends a coherent product, promotion or distribution response. Applies reliability or renewal evidence from the stimulus. Explains how the response supports retention and positioning. Justifies why targeted value creation is preferable to a broad discount.
Mark allocation
- Apply the best-fitting descriptor for each part. Indicative evidence is non-exhaustive; do not transfer unused marks between parts.
Detailed marking criteria
Part a (2 marks)
Full marks require a response to "Identify the most promising basis for BentoBloom's positioning and explain your choice." that addresses the stated command verb accurately and demonstrates all of the following: Selects reliable delivery as the strongest survey result.; Uses the 58% evidence.; Explains how positioning can differentiate the subscription offer.. Award up to 2 marks for accurate, separately creditable components; do not award the same component twice.
Acceptable alternatives: Accept accurate equivalent wording or working that answers the stated prompt using the supplied evidence.
Do not credit by itself: Provides a general syllabus statement without addressing the named business evidence or the command verb.
Part b (4 marks)
Full marks require a response to "Analyse one possible cause of the low renewal rate that further market research should test." that identifies relevant components and relationships and draws an implication and demonstrates all of the following: Identifies a plausible cause such as service failure, value or menu fit.; Explains a research method or evidence needed to test the cause.; Connects the finding to renewal behaviour rather than initial trial.. Apply the best-fitting quality descriptor when assessing the response. 4 marks: provides a detailed, well-supported response that fully addresses the command verb; 3 marks: provides a sound response supported by relevant evidence; 2 marks: provides a limited response with some relevant detail; 1 mark: provides a basic relevant statement.
Acceptable alternatives: Accept accurate equivalent wording or working that answers the stated prompt using the supplied evidence.
Do not credit by itself: Provides a general syllabus statement without addressing the named business evidence or the command verb.
Part c (4 marks)
Full marks require a response to "Recommend a marketing-mix response that is supported by the research. Justify why it is preferable to a general price discount." that proposes a suitable strategy and justifies it against the named evidence or trade-off and demonstrates all of the following: Recommends a coherent product, promotion or distribution response.; Applies reliability or renewal evidence from the stimulus.; Explains how the response supports retention and positioning.; Justifies why targeted value creation is preferable to a broad discount.. Apply the best-fitting quality descriptor when assessing the response. 4 marks: provides a detailed, well-supported response that fully addresses the command verb; 3 marks: provides a sound response supported by relevant evidence; 2 marks: provides a limited response with some relevant detail; 1 mark: provides a basic relevant statement.
Acceptable alternatives: Accept accurate equivalent wording or working that answers the stated prompt using the supplied evidence.
Do not credit by itself: Provides a general syllabus statement without addressing the named business evidence or the command verb.
Section II — Short-answer questions Question 23
(a) $840 000 ÷ $600 000 = 1.40. States the ratio as 1.40:1. Interprets that the business has $1.40 of current assets for each $1 of current liabilities.
$840 000 ÷ $600 000 = 1.40. States the ratio as 1.40:1. Interprets that the business has $1.40 of current assets for each $1 of current liabilities.
(b) Identifies that $260 000 of current assets is slow-moving inventory. Explains that inventory may not convert quickly to cash. Links slow conversion to reduced capacity to meet liabilities when due.
Identifies that $260 000 of current assets is slow-moving inventory. Explains that inventory may not convert quickly to cash. Links slow conversion to reduced capacity to meet liabilities when due.
(c) Recommends a relevant inventory, receivables or payables strategy. Applies the slow-moving inventory or liability evidence. Explains the expected cash or liquidity effect. Assesses a trade-off such as stock availability, supplier relations or implementation cost.
Recommends a relevant inventory, receivables or payables strategy. Applies the slow-moving inventory or liability evidence. Explains the expected cash or liquidity effect. Assesses a trade-off such as stock availability, supplier relations or implementation cost.
Mark allocation
- Apply the best-fitting descriptor for each part. Indicative evidence is non-exhaustive; do not transfer unused marks between parts.
Detailed marking criteria
Part a (3 marks)
Full marks require a response to "Calculate CoralCare's current ratio using current ratio = current assets ÷ current liabilities. Show working and interpret the result." that addresses the stated command verb accurately and demonstrates all of the following: $840 000 ÷ $600 000 = 1.40.; States the ratio as 1.40:1.; Interprets that the business has $1.40 of current assets for each $1 of current liabilities.. Award up to 3 marks for accurate, separately creditable components; do not award the same component twice.
Acceptable alternatives: Accept accurate equivalent wording or working that answers the stated prompt using the supplied evidence.
Do not credit by itself: Provides a general syllabus statement without addressing the named business evidence or the command verb.
Part b (4 marks)
Full marks require a response to "Explain why the calculated ratio may overstate CoralCare's short-term liquidity." that shows the required cause-and-effect or relationship and demonstrates all of the following: Identifies that $260 000 of current assets is slow-moving inventory.; Explains that inventory may not convert quickly to cash.; Links slow conversion to reduced capacity to meet liabilities when due.. Apply the best-fitting quality descriptor when assessing the response. 4 marks: provides a detailed, well-supported response that fully addresses the command verb; 3 marks: provides a sound response supported by relevant evidence; 2 marks: provides a limited response with some relevant detail; 1 mark: provides a basic relevant statement.
Acceptable alternatives: Accept accurate equivalent wording or working that answers the stated prompt using the supplied evidence.
Do not credit by itself: Provides a general syllabus statement without addressing the named business evidence or the command verb.
Part c (3 marks)
Full marks require a response to "Recommend one working-capital strategy for CoralCare and assess its likely effect." that proposes a suitable strategy and justifies it against the named evidence or trade-off and demonstrates all of the following: Recommends a relevant inventory, receivables or payables strategy.; Applies the slow-moving inventory or liability evidence.; Explains the expected cash or liquidity effect.; Assesses a trade-off such as stock availability, supplier relations or implementation cost.. Apply the best-fitting quality descriptor when assessing the response. 3 marks: provides a sound, well-supported response that addresses the command verb; 2 marks: provides a limited response with some relevant detail; 1 mark: provides a basic relevant statement.
Acceptable alternatives: Accept accurate equivalent wording or working that answers the stated prompt using the supplied evidence.
Do not credit by itself: Provides a general syllabus statement without addressing the named business evidence or the command verb.
Section II — Short-answer questions Question 24
(a) Recognises that both indicators have worsened or are high. Links the indicators to dissatisfaction, fatigue or engagement concerns. Explains a likely effect on continuity, cost or service quality.
Recognises that both indicators have worsened or are high. Links the indicators to dissatisfaction, fatigue or engagement concerns. Explains a likely effect on continuity, cost or service quality.
(b) Explains how unpredictable rosters affect employee availability or motivation. Links workforce disruption to missed delivery windows. Connects complaints or turnover to broader business performance.
Explains how unpredictable rosters affect employee availability or motivation. Links workforce disruption to missed delivery windows. Connects complaints or turnover to broader business performance.
(c) Recommends a clearly explained human resource approach using accurate concepts and business terminology; predictable rostering, regular supervisor feedback and employee consultation are one suitable example. Applies relevant exit-interview or indicator evidence, such as unpredictable rosters, limited feedback, rising turnover or missed delivery windows. Explains causal links from the proposed measures to retaining staff and more reliable delivery. Justifies the approach's suitability using relevant business benefits and feasible implementation; cost or flexibility constraints may strengthen the justification.
Recommends a clearly explained human resource approach using accurate concepts and business terminology; predictable rostering, regular supervisor feedback and employee consultation are one suitable example. Applies relevant exit-interview or indicator evidence, such as unpredictable rosters, limited feedback, rising turnover or missed delivery windows. Explains causal links from the proposed measures to retaining staff and more reliable delivery. Justifies the approach's suitability using relevant business benefits and feasible implementation; cost or flexibility constraints may strengthen the justification.
Mark allocation
- Apply the best-fitting descriptor for each part. Indicative evidence is non-exhaustive; do not transfer unused marks between parts.
Detailed marking criteria
Part a (3 marks)
Full marks require a response to "Explain what the turnover and absenteeism indicators suggest about human resource effectiveness." that shows the required cause-and-effect or relationship and demonstrates all of the following: Recognises that both indicators have worsened or are high.; Links the indicators to dissatisfaction, fatigue or engagement concerns.; Explains a likely effect on continuity, cost or service quality.. Apply the best-fitting quality descriptor when assessing the response. 3 marks: provides a sound, well-supported response that addresses the command verb; 2 marks: provides a limited response with some relevant detail; 1 mark: provides a basic relevant statement.
Acceptable alternatives: Accept accurate equivalent wording or working that answers the stated prompt using the supplied evidence.
Do not credit by itself: Provides a general syllabus statement without addressing the named business evidence or the command verb.
Part b (3 marks)
Full marks require a response to "Analyse the relationship between Redgum's roster practices and operations performance." that identifies relevant components and relationships and draws an implication and demonstrates all of the following: Explains how unpredictable rosters affect employee availability or motivation.; Links workforce disruption to missed delivery windows.; Connects complaints or turnover to broader business performance.. Apply the best-fitting quality descriptor when assessing the response. 3 marks: provides a sound, well-supported response that addresses the command verb; 2 marks: provides a limited response with some relevant detail; 1 mark: provides a basic relevant statement.
Acceptable alternatives: Accept accurate equivalent wording or working that answers the stated prompt using the supplied evidence.
Do not credit by itself: Provides a general syllabus statement without addressing the named business evidence or the command verb.
Part c (4 marks)
Full marks require a response to "Recommend a human resource strategy to improve retention and service reliability. Justify the recommendation." that proposes a suitable strategy and justifies it against the named evidence or trade-off and demonstrates all of the following: Recommends a clearly explained human resource approach using accurate concepts and business terminology; predictable rostering, regular supervisor feedback and employee consultation are one suitable example.; Applies relevant exit-interview or indicator evidence, such as unpredictable rosters, limited feedback, rising turnover or missed delivery windows.; Explains causal links from the proposed measures to retaining staff and more reliable delivery.; Justifies the approach's suitability using relevant business benefits and feasible implementation; cost or flexibility constraints may strengthen the justification.. Apply the best-fitting quality descriptor when assessing the response. 4 marks: provides a detailed, well-supported response that fully addresses the command verb; 3 marks: provides a sound response supported by relevant evidence; 2 marks: provides a limited response with some relevant detail; 1 mark: provides a basic relevant statement.
Acceptable alternatives: A clearly explained and justified practical strategy may receive full marks without explicitly naming a syllabus category. Credit predictable rostering, regular supervisor feedback and consultation, or another coherent approach that accurately applies human resource concepts and the business evidence to retention and delivery reliability. Use of accurate business terminology remains expected.
Do not credit by itself: Merely names a strategy or lists actions without accurate explanation, business-evidence application and justification of retention and delivery-reliability effects.
Section III — Business report Question 25
Business report
Executive summary TidalLeaf's performance problems are interdependent. Quality failures weaken marketing credibility, place pressure on finance through returns and require stronger employee and supplier capability.
Findings — operations Introduce supplier certification, incoming quality assurance and traceability before expanding output; these controls address the return rate and support repairability.
Findings — marketing Replace broad price promotion with evidence-based positioning around verified durability and repair services, supported by accurate environmental claims.
Findings — finance Use a seasonal cash-flow budget and tighter working-capital controls. The current ratio is only 1.19:1, so promotion-led volume should not precede cash planning.
Findings — human resources Use cross-functional product training, team goals and consultation to lower inconsistency and turnover while connecting stores to quality feedback.
Recommendations Prioritise certification, truthful repositioning, cash budgeting and coordinated training; monitor returns, complaints, cash adequacy and staff turnover together.
This model demonstrates one defensible structure. Other relevant recommendations supported by the supplied evidence may achieve full marks.
This is an independently authored example. Other accurate, well-supported structures, stimulus applications, strategies and recommendations may receive full marks.
Reference sources
Question-specific business-report marking guidance
Read the response as a whole and select the best-fitting range. The indicative evidence is non-exhaustive and no single point guarantees a mark range.
Overall response quality
Makes an integrated, evidence-based judgement and recommendations in an effective business report.
Acceptable alternatives: Accept other accurate syllabus content, strategies and well-supported applications of the supplied hypothetical business situation that answer the complete question.
Do not credit by itself: Presents a pre-prepared description, omits a required element, or asserts a judgement without analysis and evidence.
Holistic marking bands
| Marks | Descriptor |
|---|---|
| 17-20 | Demonstrates comprehensive syllabus knowledge; perceptively applies the hypothetical business situation to the required business issues; critically analyses issues; evaluates alternatives; makes sustained, well-supported recommendations; and communicates in a cohesive business report using precise terminology and effective report conventions. |
| 13-16 | Demonstrates thorough knowledge; applies substantial stimulus evidence; analyses important issues; evaluates strategies and supports clear recommendations; and uses a logical business-report structure with appropriate terminology. |
| 9-12 | Demonstrates sound knowledge; uses some relevant stimulus evidence; explains and partly analyses the issues; proposes generally relevant strategies or recommendations; and communicates in a recognisable report structure. |
| 5-8 | Demonstrates limited knowledge; makes general or uneven reference to the stimulus; describes rather than analyses strategies; offers weakly supported recommendations; and uses limited report organisation or terminology. |
| 1-4 | Provides isolated relevant statements with little accurate stimulus application, analysis, recommendation or report organisation. |
| 0 | Provides no relevant or assessable response. |
Section IV — Extended response Question 26
Possible thesis Growth makes performance objectives interdependent: the best operations strategy manages trade-offs rather than maximising one measure in isolation.
Development plan 1. Analyse how technology and process design affect speed and cost. 2. Evaluate quality-management and supply-chain choices using relevant case evidence. 3. Consider change management and the risk that cost reductions weaken differentiation.
Sustained judgement The most effective combination is contingent on market position and operational constraints, and should be judged through customer, quality, time and cost evidence.
This is one possible plan. A candidate may use any relevant and accurately applied case study/studies, contemporary business issues and a different defensible line of argument.
This is an independently authored example. Other accurate, well-supported structures, business case studies, contemporary business issues, strategies and judgements may receive full marks.
Reference sources
Question-specific extended-response marking guidance
Read the response as a whole and select the best-fitting range. The indicative evidence is non-exhaustive and no single point guarantees a mark range.
Overall response quality
Develops and sustains a relevant, analytical and evaluative response using appropriate business case-study evidence and contemporary business issues.
Acceptable alternatives: Accept other accurate syllabus content, relevant strategies and well-supported applications of business case study/studies and contemporary business issues that answer the complete question.
Do not credit by itself: Presents a pre-prepared description, omits a required element, or asserts a judgement without analysis and evidence.
Holistic marking bands
| Marks | Descriptor |
|---|---|
| 17-20 | Demonstrates comprehensive syllabus knowledge; perceptively applies relevant business case study/studies and contemporary business issues; critically analyses relationships and evaluates strategies; sustains a well-supported judgement; and communicates a cohesive response using precise business terminology. |
| 13-16 | Demonstrates thorough knowledge; applies substantial evidence from business case study/studies and contemporary business issues; analyses important relationships; evaluates strategies and supports a clear judgement in a logical, well-organised response. |
| 9-12 | Demonstrates sound knowledge; uses some relevant business case-study material or contemporary business issues; explains and partly analyses the required content; and reaches a generally relevant but unevenly supported judgement. |
| 5-8 | Demonstrates limited knowledge; makes general references to a business case study or contemporary business issue; mainly describes content or strategies; and provides a weakly developed line of reasoning or judgement. |
| 1-4 | Provides isolated relevant statements with little accurate application of a business case study or contemporary business issue, analysis, organisation or judgement. |
| 0 | Provides no relevant or assessable response. |
Section IV — Extended response Question 27
Possible thesis A marketing plan creates value only when controls convert performance evidence into timely adjustments.
Development plan 1. Explain relevant marketing objectives and forecast measures. 2. Analyse how sales, market-share and profitability evidence reveals strategy performance. 3. Assess revisions to product, price, promotion and place using case-study evidence.
Sustained judgement Monitoring is essential, but its value depends on valid objectives, useful metrics and management willingness to change the marketing mix.
This is one possible plan. A candidate may use any relevant and accurately applied case study/studies, contemporary business issues and a different defensible line of argument.
This is an independently authored example. Other accurate, well-supported structures, business case studies, contemporary business issues, strategies and judgements may receive full marks.
Reference sources
Question-specific extended-response marking guidance
Read the response as a whole and select the best-fitting range. The indicative evidence is non-exhaustive and no single point guarantees a mark range.
Overall response quality
Develops and sustains a relevant, analytical and evaluative response using appropriate business case-study evidence and contemporary business issues.
Acceptable alternatives: Accept other accurate syllabus content, relevant strategies and well-supported applications of business case study/studies and contemporary business issues that answer the complete question.
Do not credit by itself: Presents a pre-prepared description, omits a required element, or asserts a judgement without analysis and evidence.
Holistic marking bands
| Marks | Descriptor |
|---|---|
| 17-20 | Demonstrates comprehensive syllabus knowledge; perceptively applies relevant business case study/studies and contemporary business issues; critically analyses relationships and evaluates strategies; sustains a well-supported judgement; and communicates a cohesive response using precise business terminology. |
| 13-16 | Demonstrates thorough knowledge; applies substantial evidence from business case study/studies and contemporary business issues; analyses important relationships; evaluates strategies and supports a clear judgement in a logical, well-organised response. |
| 9-12 | Demonstrates sound knowledge; uses some relevant business case-study material or contemporary business issues; explains and partly analyses the required content; and reaches a generally relevant but unevenly supported judgement. |
| 5-8 | Demonstrates limited knowledge; makes general references to a business case study or contemporary business issue; mainly describes content or strategies; and provides a weakly developed line of reasoning or judgement. |
| 1-4 | Provides isolated relevant statements with little accurate application of a business case study or contemporary business issue, analysis, organisation or judgement. |
| 0 | Provides no relevant or assessable response. |
Diagnostic Checklist
| Review focus | Section | Reflection and next action |
|---|---|---|
| Operations | Q2, Q6, Q10, Q13, Q20, Q21, Q25, Q26 | Review operations influences, processes and strategies, then practise linking performance objectives and operations decisions to other business functions. |
| Marketing | Q4, Q7, Q11, Q12, Q15, Q22, Q25, Q27 | Review the marketing process, customer influences and the marketing mix, then practise judging strategy effectiveness for a defined target market. |
| Finance | Q1, Q3, Q16, Q18, Q19, Q23, Q25 | Review sources, objectives, statements, ratio interpretation and financial strategies; show formulas, working, units and a business interpretation. |
| Human Resources | Q5, Q8, Q9, Q14, Q17, Q24, Q25 | Review influences, processes, strategies, dispute resolution and effectiveness indicators, then connect workforce decisions to business performance. |