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HSC Business Studies Question Thread
emilyygeorgexx:
--- Quote from: dani01 on October 23, 2019, 07:25:52 pm ---Will they give me financial ratios for the short/long responses. I see they do in the multiple choice. :)
--- End quote ---
Hi Dani,
Financial ratios as a short answer question is a huge possibility, so I would definitely be prepared for that. This means knowing how to calculate the ratio and give a comment on the ratio meaning knowing what the objective its related to, is it good or bad, how does it affect the business, comparing to industry standards/benchmarks and what strategies can the business use to improve the ratio. Remember you will be given the ratios so no need to freak out about memorising them!
In terms of long responses, you could be asked it in the business report as one dot point. This could be something like commenting on the ratios of the business and the recommending strategies to overcome any issues in the business. However, I haven't commonly seen this as a question but in the 2016 HSC they did provide a balance sheet for students to analyse in the business report so I would say anything is a possibility. In terms of the essay, the only time you can really be asked on it is if the question is asking about financial management processes. Even in that situation, you would not necessarily have to write about the ratios as you can write about anything else in the syllabus that falls under financial management processes.
Hope this clears it up and good luck with studying!
gubby1707:
Hi! i came upon this question and i'm not entirely sure how to answer this
Mainly part a)
Grace0702:
--- Quote from: gubby1707 on October 26, 2019, 04:02:17 pm ---Hi! i came upon this question and i'm not entirely sure how to answer this
Mainly part a)
--- End quote ---
Hey!
So basically part a) is asking you to identity when the business falls into debt.
We start in January where we need to find the closing cash balance for that month. This means we need to identity the opening cash balance, cash inflows and cash outflows. Once we have identified this we can use the formula
Opening balance + cash inflows - cash outflows = closing balance
So for January, the opening cash balance is $4000.
The cash inflows are cash sales and receipts from debtors which add to $30000
The cash outflows include wages, cash purchases, payment to creditors, electricity and annual insurance which add to $22000
(Note: where electricity and insurance are blank it means there were no payments for that month)
We can now sub these figures into the formula
$4000 + $30000 - $22000 = $12000
Therefore the closing cash balance for January is $12000
Remember that the closing cash balance for one month is the opening cash balance for the next month, so the closing balance for January is the opening balance for February
Now, similarly with February we sub in the figures to the above formula.
$12000 + $31000 - $47000 = -$4000
Therefore the closing balance for February is -$4000
Which is a negative balance.
This means March will open with a negative balance. This question is worded a bit odd but I assume they mean which is the first month with a negative opening balance, so I would answer March, but I may be wrong though.
For part b) they are just asking you to make a judgement on the effectiveness of cash flow management strategies in this situation. You could choose to explore: distribution of payments, discounts for early payments or factoring.
I hope this helped a bit!
Thankunext:
Hey! Can someone help with this multiple choice question?
A manufacturing business has recently changed its marketing strategy to include e-marketing. What external influence may have led to this?
A) increased staffing costs
B) underperforming retail sales
C) the recent employment of a computer expert
D) the inability to differentiate its brand from competitors
Thanks!
I know I asked this question before but many people have told me different answers so I want to ask it again. Hope that is ok!
Grace0702:
--- Quote from: Thankunext on October 26, 2019, 09:44:41 pm ---Hey! Can someone help with this multiple choice question?
A manufacturing business has recently changed its marketing strategy to include e-marketing. What external influence may have led to this?
A) increased staffing costs
B) underperforming retail sales
C) the recent employment of a computer expert
D) the inability to differentiate its brand from competitors
Thanks!
I know I asked this question before but many people have told me different answers so I want to ask it again. Hope that is ok!
--- End quote ---
Hey!
This type of question it is best to work backwards. So lets get rid of what we know the answer can't be.
External influences regard the surrounding environment of a business in which they have little to no control over. Whereas internal influences come from within a business and they have the power to control these.
B is an influence that definitely could've contributed to the businesses choice, however it is within the business, therefore internal, so this cannot be the answer. Similarly with C, the acquisition of new employees is internal as the business made the conscious choice to hire this person.
This leaves us with A and D. Increased staffing costs is external as higher demand my have caused a surge in wages, or possibly changes to award conditions. However, this begins to take us into the HR function which is not really what this question is asking of us. This question comes under marketing strategies, specifically e-marketing. Marketing is all about developing a brand that customers want to purchase from. This leads me to think that D must be the answer. Marketing looks to generate sales by any means, not reduce costs (that is more so operations and finance). So through differentiating their brand in adopting an e-marketing strategy, this business can ultimately increase sales and achieve profit maximisation which is the strategic role of marketing.
I hope my reasoning makes sense and that this helps!
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