Internal stakeholders in a business include

employees, managers, and shareholders

What is a possible benefit to employees of industrial conflict?

Employees are able to express their dissatisfaction

What are two obligations of employees in the workplace?

Disclose only relevant information and to act in good faith

The ability of the business to pay short term liabilities

What is an example of market segmentation?

A cereal manufacturer's ads targeting specific age groups

Which of the following are external sources of funds for businesses?

Grants, debentures, leasing, mortgage

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

Continuing current practices when a new competitor emerges

The most likely impact on a business of a build-up of stocks of raw materials is

A decrease in gross profit and decrease in liquidity

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

Paying a man a higher wage than a woman doing the same job

What is the most likely reason that a business would use price skimming?

To gain high profits when demand is strong

A ‘Code of Practice’ is a statement of policies and rules that

Guides business behaviour beyond legal requirements

Which of the following is an employment contract negotiated by an individual?

A verbal agreement with an employer

How is the role of the Reserve Bank of Australia best described?

It oversees the stability of the financial system

How can an Australian business expand internationally?

By merging with a business operating overseas

Which of the following contains two features of behaviour management style?

Team structures and participative leadership style

Which of the following is an advantage of using the classical-scientific theory ofmanagement?

Division of labour creating improved productivity

Which of the following is an external source of change for a business?

Increase in consumer spending power

Which of the following includes ALL four elements of the marketing mix?

Discounting, packaging, advertising, distribution

An Australian motor retailer is considering vertical integration to manage its business.

Purchase a foreign manufacturer of foreign parts

Which of the following is a disadvantage of outsourcing financialsupport services?

Loss of skills in preparing financial reports

Kim is an independent contractor who cleans a school.

She is responsible for paying her own income tax

An advantage of Owners’ Equity as a source of funding for a partnership is

decreased leverage of the business

Which of the following includes both an opportunity and a threat from a SWOT analysis?

Strong economic growth and increased tax rates

Which of the following is a legal requirement that supermarkets have to follow?

Provide a safe shopping environment

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HSC Business Studies Revision

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Answers

1
A budget is used by a business to
Predict future products
Prepare a balance sheet
Calculate profitability
Guide the use of inputs
2
Which of the following resistance to change is a financial cost for business?
Cultural incompatibility in mergers
Reorganisation of plant layout
Loss of career prospect
Inertia of managers
3
Internal stakeholders in a business include
government, customers, and society
customers, employees, and creditors
employees, managers, and shareholders
financiers, clients, and owners
4
What is a possible benefit to employees of industrial conflict?
Employees are able to negotiate workers compensation laws
Increased levels of staff turnover
Employees are able to express their dissatisfaction
Increased insurance costs
5
What are two obligations of employees in the workplace?
Disclose only relevant information and to act in good faith
Work with skill and to provide promotion opportunities
Duty of care and provision of sick leave
Obey lawful instructions and provide on-the-job training
6
What is liquidity?
The ability of the business to pay short term liabilities
The ability of the business to use resources effectively
The ability of the business to monitor and control income
The ability of the business to pay long term liabilities
7
What is an example of market segmentation?
A cereal manufacturer's ads targeting specific age groups
A biscuit manufacturer repackaging its product
A shoes brand releasing a new line of sport shoes
A bank offering reward points to loyal customers
8
An Australian business is negotiating an order with an overseas customer.
Bill of exchange
Letter of credit
Open account
Payment in advance
9
Which of the following are external sources of funds for businesses?
Venture capital, loans, drawings, factoring
Bank overdraft, retained profits, factoring, bank bills
Accounts payable, owners’ equity, leasing, discount
Grants, debentures, leasing, mortgage
10
Which of the following aspects of marketing does NOT fall under consumer laws?
Deceptive advertising
Positioning
Warranties
Implied conditions
11
Which of the following is an example of a manager displaying inertia?
Dismissing a person who requests maternity leave
Continuing current practices when a new competitor emerges
Accusing employees of disloyalty
Using inappropriate cut-off periods when recording sales
12
Which of the following is an entitlement of Australian employees?
Holiday loading
Wage raise every year
Minimum employment standards
Renewed employment contract every three years
13
The most likely impact on a business of a build-up of stocks of raw materials is
An increase in working capital and increase in liquidity
A decrease in gross profit and decrease in liquidity
An increase in working capital and decrease in liquidity
A decrease in gross profit and increase in liquidity
14
Which of the following is a breach of anti-discrimination legislation?
Advertising a job that requires fluency in an Asian language
Constantly making fun of a new employee
Offering discounts to holders of senior citizens’ cards
Paying a man a higher wage than a woman doing the same job
15
Which of the following non-monetary rewards allows a business to motivate their employees?
Holiday leave
Chance for promotion
Flexible working hours
Higher superannuation contribution
16
What is the most likely reason that a business would use price skimming?
To encourage export sales
To gain high profits when demand is strong
To reverse the decline stage of the product life cycle
To achieve market share quickly
17
A ‘Code of Practice’ is a statement of policies and rules that
Ensure effective discipline of employees
Guides business behaviour beyond legal requirements
Are legally binding
Provides specific rules for a business
18
A business sells jewellery to 15–20 year olds.Which type of market is the business targeting?
Niche
Resource
Intermediate
Consumer
19
Riley's company is planning to ensure women have better access to senior positions.
Anti-discrimination
Workers compensation
Occupational health and safety
Equal employment opportunity
20
A business is providing financial support for a local sporting event as a marketing strategy
Promotion
Place
Price
Product
21
Which of the following is an employment contract negotiated by an individual?
A federal award
A verbal agreement with an employer
A collective agreement
An enterprise bargaining award
22
A car company advertises its new car as more exciting and fun to drive than itscompetitors’
Positioning
Public relations
Personal selling
Opinion leader
23
A management tool used for analysing the truth and fairness of financial recordkeeping is
A profitability ratio
A liquidity ratio
A quality assurance program
An audit
24
A business has a team of people that inspects food before they are sold. This is an example of?
Monitoring
Quality improvement
Quality assurance
Quality control
25
What is a legal regulation that influences operations management?
Provision of safety training
Ensure all staffs have access to the latest equipments
Meeting taxing obligations
Engaging in fair competition
26
Grievance procedures are used when...
Employees wants to increase prices
Employees are ill
Employees have complaints
Employees are being appraised
27
How can a business demonstrate ethical responsibility towards its employee?
Reduce pollution
Sponsor a community event
Use recycled packaging
Provide a safe working place
28
How is the role of the Reserve Bank of Australia best described?
It oversees the stability of the financial system
It provides insurance services for farmers
It facilitates the buying and selling of shares
It provides loans to small businesses
29
How can an Australian business expand internationally?
By merging with a business operating overseas
By reducing the costs of overseas manufacturing plants
By contracting overseas suppliers for imports
By sending their management team to be trained overseas
30
Which of the following contains two features of behaviour management style?
Flat organisation structure and autocratic decision making
Open communication and division of labour
Wide span of control and system management approach
Team structures and participative leadership style
31
A business sells its accounts receivable to improve cash flow. What strategy is this?
Factoring
Account receivable turnovers
Equity financing
Sales and lease back
32
Which of the following is an advantage of using the classical-scientific theory ofmanagement?
Improved worker satisfaction through doing repetitive tasks
Improved team work leading to higher profits
Greater efficiency from flat structures
Division of labour creating improved productivity
33
Satisfying customer's demands as quickly as possible while delivering individualised products.
Speed and Quality
Dependability and Customisation
Cost and Quality
Speed and Customisation
34
What type of industrial action is a lockout?
Overt action by an employee
Overt action by an employer
Covert action by an employer
Covert action by an employee
35
Which of the following is an external source of change for a business?
Modification of its marketing campaign
The decision to market its product using e-commerce
Provision of electronic payment facilities for customers
Increase in consumer spending power
36
Which of the following is an essential element of achieving ‘world best practice’?
Total quality management
Continuous improvement
Benchmarking
Quality circles
37
Using factoring to pay creditors.Which financial objective is this trying to achieve?
Liquidity
Efficiency
Profitability
Solvency
38
Which of the following includes ALL four elements of the marketing mix?
Advertising, warranties, pricing, public relations
Credit terms, positioning, segmentation, pricing
Personal selling, branding, warehousing, publicity
Discounting, packaging, advertising, distribution
39
An Australian motor retailer is considering vertical integration to manage its business.
Diversifying by selling car cleaning product internationally
Set up E-commerce facilities with multinational suppliers
Organise an intermediary to distribute motor parts overseas
Purchase a foreign manufacturer of foreign parts
40
Which of the following is a disadvantage of outsourcing financialsupport services?
Loss of skills in preparing financial reports
Greater need for staff with accounting skills
Increased difficulty in understanding financial information
Reduced efficiency of market research
41
Tobacco advertising is now banned in many countries. This can be explained as an influence of
The ecological environment
The technological environment
The legal environment
The economic environment
42
Kim is an independent contractor who cleans a school.
She is responsible for paying her own income tax
Her employment is subject to award conditions
She is entitled to maternity leave provided by the school
She is entitled to four weeks annual leave
43
What is ONE use of a cash flow statement for management?
To determine the values of intangibles
To identify new markets
To negotiate finance
To calculate depreciation of assets
44
What does a cash flow statement show?
Total Equity
Profitability
Assets
Liquidity
45
A balance sheet includes which of the following?
Expenses
Sales revenue
Intangible assets
Return on owner's equity
46
Which of the following are BOTH external sources of funds for a business?
Owner’s Equity, mortgage
Bank loan, mortgage
Retained profits, factoring
Retained profits, leasing
47
An advantage of Owners’ Equity as a source of funding for a partnership is
increased liabilities for the business
no change to the leverage of the business
reduced risk due to limited liability
decreased leverage of the business
48
Which of the following includes both an opportunity and a threat from a SWOT analysis?
Loyal employees and outdated technology
Strong economic growth and increased tax rates
Excellent management and strong competition
Low interest rates and high gearing
49
What might happen if a company has highly undervalued plant andequipment on its balance sheet?
Factoring of liabilities
Asset stripping
Growth in equity
Capital expansion
50
Which of the following is a legal requirement that supermarkets have to follow?
Advertise their products weekly
Offer money-back guarantees
Provide a safe shopping environment
Deliver quality service

HSC Business Studies Revision Flashcards | StudBud