SUGGESTED ASSESSMENT TASKS

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1 SUGGESTED ASSESSMENT TASKS The nature of business Extended response questions In the HSC examination you will be asked a number of short and extended response questions based on the HSC course. A report style format is required for these extended response answers, a style of writing used extensively in business. Report writing will require you to disregard much of what you have previously been taught when writing traditional essay style answers. Report answers use: short statements lists of main points followed with explanations when appropriate short paragraphs headings and subheadings diagrams, tables and graphs condensed conclusions and/or recommendations when required. Newspaper articles adopt a report writing style. Each paragraph is brief, to the point with short sentences. It is important that you become familiar with answering this type of question. 1. Prepare a list of four businesses in your community that have been operating for at least three years. For each business, answer the following questions: (a) What factors have been responsible for the success of the business? (b) How does the business attempt to determine what goods or services customers want? (c) What strategies does the business use to maintain its customer base? 2. The main objective of a business is to maximise profits. (a) How would you define profit? (b) Under what circumstances would a business be prepared to accept reduced profits in the short term? (c) In your opinion should profit be the only objective of a business? 3. Discuss the importance of business to the Australian economy. In your answer refer to: (a) creating value (b) social and economic roles (c) relevant stakeholders. 4. Choose a business that you are familiar with. (a) List the natural, capital and labour resources you would need to start such a business. (b) Design a simplified flow chart to show the stages of production. (c) Using your own figures calculate the value added/ wealth creation. Show how this wealth could be distributed. (d) Identify all the relevant stakeholders and outline the responsibilities the business has to each one. 5. (a) Explain the economic and social importance of business to the Australian economy. (b) Identify the three resources needed for production to occur and explain why they are critical inputs for any business. (c) Outline the main characteristics of the average entrepreneur. 6. (a) What is business? (b) Outline how businesses contribute to our social and economic wellbeing. 7. Arrange an interview with a local business owner. Prepare either a two-page written or five-minute oral report. You might wish to develop your report under the following headings: (a) reasons for establishing the business (b) brief history of the business (c) success and failure along the way (d) financial record keeping. 8. Are the advantages of small business really advantages? Would not every small-business owner like his or her business to grow into a large firm? Discuss. Suggested assessment tasks 141

2 9. The business life cycle consists of four main phases. (a) Provide a brief outline of the main features of each phase. (b) Outline the main challenges confronting a business at each phase. (c) Explain how having an understanding of the business life cycle can be of assistance to the business owner. 10. Small business should not be taken for granted. Discuss the accuracy of this statement. In your answer use some statistics to support your arguments. 11. (a) Define business. (b) How is a business different from other forms of organisation? (c) Describe the main legal entities businesses can choose from. 12. Organise to visit a sole trader, partnership, private and public company. Have a spokesperson explain the advantages and disadvantages of their form of business entity. Present your information as a written report. 13. (a) Explain the difference between a partnership and a private company. (b) Outline the reasons for a business deciding to float on the stock exchange. (c) Describe the process involved in floating a business. 14. An effective partnership is one in which the partners always agree on all matters relating to the business. Do you agree or disagree with this statement? Give reasons for your answer. 15. (a) Outline the four main methods used to classify business. (b) What are the advantages in classifying business according to these criteria? (c) Discuss the factors influencing a business owner s choice of legal structure. 16. Your brother is thinking about starting a family business. He has invited you to be a member of the business and has asked you for your advice. Write a report providing information on the following: (a) two legal types of business structure that may be appropriate (explain why) (b) the legal requirements for setting up each type of business (c) the advantages and disadvantages of each type of business. 17. Ezzra and Jacinta are considering forming a partnership. They have worked for an architect for some time and now feel that they could do much better on their own. Imagine that Jacinta has approached you for advice. State how you would advise her on the following: (a) the legal requirements for the formation of a partnership (b) the legal rights and responsibilities of each partner in a partnership (c) any legal requirements for the cessation of the partnership. 18. Prepare a case study of a business in your local community. Arrange a visit to interview the business owner or manager. Find information on the following areas: (a) Name and address of the business (b) Brief history of the business (c) Business classification and prime function (d) Mission statement of the business (e) Goals of the business (f) Inputs from the environment (g) Outputs to the environment (h) Changes that have occurred in the business over the last year (i) The social and ethical responsibilities of the business to the community. 19. (a) What is the key to determining whether or not a business s actions are socially responsible? (b) Explain the difference between the economic and socioeconomic models of social responsibility. (c) Outline the main benefits to a business of conducting a social audit. 20. (a) What is meant by the term business ethics? (b) Why is it sometimes difficult to determine what is right or wrong when examining ethical issues? (c) What is a Code of Conduct and what purpose does it serve? 142 Topic 1 The nature of business

3 21. (a) Outline the responsibilities a business has to each of its stakeholders. (b) Explain why some of these responsibilities are incompatible whereas others are compatible. (c) Should shareholders expectations take precedence over the desires of other stakeholders? Give reasons for your answer. 22. (a) Suggest a number of strategies a business can use to reconcile the conflicting interests of its stakeholders. (b) Assess the effectiveness of each of these strategies. (c) Why is it sometimes difficult for a business to satisfy the expectations of all its stakeholders? Multiple choice questions In the HSC examination you will be required to complete 20 multiple choice questions. Therefore, it is important that you become familiar with answering this type of question. For each question choose the best alternative: 1. A business is: (a) any activity undertaken by people (b) only motivated by maximising profit (c) the organised effort of individuals to produce and sell, for a profit, goods and services (d) none of the above. 2. The person who risks his or her time, energy and money to start a business is called: (a) an employer (b) an entrepreneur (c) an innovator (d) a financier. 3. An example of a secondary industry is: (a) Plastics Manufacturing Ltd (b) Zenon Mining (c) Canberra Legal Centre (d) Heritage Motel. 4. The most common type of business entity in Australia is a: (a) partnership (b) cooperative (c) public company (d) sole trader. 5. National Foods Limited would most likely be a: (a) public company (b) private company (c) government business enterprise (d) partnership. 6. Complacency amongst management normally occurs in the: (a) establishment phase (b) maturity phase (c) post-maturity phase (d) growth phase. 7. A private company has the following letters after its name: (a) Pty Ltd (b) Pty Co (c) Ltd (d) none of the above. 8. Businesses are important to the Australian economy because they: (a) provide goods and services to satisfy consumers wants (b) provide employment for millions of people (c) contribute to Australia s Gross Domestic Production (d) all of the above. 9. To float a company means that: (a) its overseas reserves are exchanged for hard currency (b) it maintains a small cash reserve (c) it has issued shares to the public (d) its assets have been liquidated. 10. Social and ethical responsibility of a business refers to: (a) a business s responsibility only to its shareholders (b) a business s responsibility only to its internal stakeholders (c) a business s responsibility to both its internal and external stakeholders (d) a business s responsibility only to its internal stakeholders. Suggested assessment tasks 143

4 Business terms Business Studies has its own terminology. To be able to discuss and write about business-related issues it is important to know the meanings of these specialist words. This exercise will help you assess your understanding of this topic s terms. Match the term with the correct definition: Terms (a) business entity (b) primary (c) secondary (d) tertiary (e) quaternary (f) quinary (g) government business enterprise (h) private business enterprise (i) non-profit business (j) unincorporated business (k) incorporated business (l) private company (m)public company (n) sole trader (o) cooperative (p) franchise (q) company (r) public sector (s) private sector (t) small business (u) transnational (v) stakeholder (w) shareholder (x) business ethics (y) social justice (z) ecologically sustainable development Definitions 1. This industry involves taking a raw material and making it into a finished or semi-finished product. 2. A business entity which is listed on the Stock Exchange. 3. A manufacturing business that employs fewer than 100 people and a non-manufacturing business that employs fewer than 20 people. 4. This industry involves people performing a vast range of services for other people. 5. This industry includes all services that have been traditionally been performed in the home. 6. The legal structure used for operating a business. 7. A set of policies adopted by a business to ensure that employees or other community members are treated equally and fairly. 8. This industry involves producing something that has been provided by nature. 9. The application of moral standards to business behaviour. 10. The protection and management of the natural environment in such a way the needs of the present generation are met without compromising future generations. 11. A business entity with one owner 12. Individuals or groups that are directly or indirectly affected by the business. 13. This industry includes services that deal with the transferring and processing of knowledge. 14. These organisations operate to provide social, educational, religious and other services rather than to earn a profit. 15. A business entity with between 2 and 50 shareholders. 16. When a business has its own legal entity. 17. To become part owner of a business. 18. These business enterprises are government owned. 19. A licence to operate an individually owned business as if it were part of a chain of outlets or stores. 144 Topic 1 The nature of business

5 20. A large business that operates in many countries and employs thousands of people. 21. These business enterprises are owned and operated by private individuals or groups of individuals. 22. The sector which includes all government-owned businesses. 24. A business entity that is incorporated and can be either privately or publicly owned. 25. The sector which includes all privately owned businesses. 26. When a business and the owner do not have separate legal existence. 23. A business entity made up of a group of people who join for a particular purpose. Suggested assessment tasks 145