HSC Business Studies Question Thread

[Opengangs]

Hi,

Are we required to know how to do LIFO and FIFO calculations?
I've never come across them until now :O

Thanks!

I would think so, in case they do ask one

[Vinnnnnnyyyyyy]

I would think so, in case they do ask one

Never heard of calculations for these. What are they? Thanks.

[droodsh]

Never heard of calculations for these. What are they? Thanks.

yess neither???
Pls help!! im freaking out now!

[marcorabbitolol]

hi
im so confused about financial ratios- as always
for this question the answer is A- could someone explain why this is the case. my answer was C- as the efficiency ratio for business A showed less days than business B- have i misinterpreted?

[tammy.tran31]

Hey guys, could someone please help with this question from the 2013 paper?

So BOSTES says its B but the Excel book says A

[MisterNeo]

hi
im so confused about financial ratios- as always
for this question the answer is A- could someone explain why this is the case. my answer was C- as the efficiency ratio for business A showed less days than business B- have i misinterpreted?

The ART Ratio is calculated using Sales/AR, which gives you a number. The higher that number is, the better.

When 365 days is divided by that number, it gives number of days average to collect AR, which less is better.

[Vinnnnnnyyyyyy]

hi
im so confused about financial ratios- as always
for this question the answer is A- could someone explain why this is the case. my answer was C- as the efficiency ratio for business A showed less days than business B- have i misinterpreted?

You need to see which one collects their accounts receivable more often for efficiency. Sales/Accounts receivable for A = 8 times per year. 365 divided by this result is 45.6; 46 days. For B = 11.2 times per year. 365 divided by this result is 32.5; 33 days. Without doing the 365 divided by (x) calculation, you can already see Business B does more collections.

Therefore, Business B collects their accounts receivable more times than Business A in a year, making them more efficient. 

[marcorabbitolol]

You need to see which one collects their accounts receivable more often for efficiency. Sales/Accounts receivable for A = 8 times per year. 365 divided by this result is 45.6; 46 days. For B = 11.2 times per year. 365 divided by this result is 32.5; 33 days. Without doing the 365 divided by (x) calculation, you can already see Business B does more collections.

Therefore, Business B collects their accounts receivable more times than Business A in a year, making them more efficient. 

The ART Ratio is calculated using Sales/AR, which gives you a number. The higher that number is, the better.

When 365 days is divided by that number, it gives number of days average to collect AR, which less is better.

ohh i get it!! thanks heaps!!
 i completely over-complicated my working out rip

[isaacdelatorre]

Hey guys, could someone please help with this question from the 2013 paper?

So BOSTES says its B but the Excel book says A

Hey there,

The correct answer is B intermediate market since they are not actually selling the teddy bears to consumers. Instead they are selling it to toy stores to sell to consumers - essentially to another intermediary before it reaches a consumer. Hence B is the correct answer - i have noticed that excel and dot point books tend to be a little inaccurate so good on u for picking that up

Isaac

Hi,

Are we required to know how to do LIFO and FIFO calculations?
I've never come across them until now :O

Thanks!

Never heard of calculations for these. What are they? Thanks.

Hey guys,

So LIFO and FIFO are just ways of valuing inventory (using the prices of the first stock/last stock/each new stock etc.) there are ways to calculate it; but you'll never be asked a question to calculate the difference in the price of stock and the effect on profits. You just need to know that LIFO is illegal because it overstates the cost of inventory/stock and thus skews the value of profit and thus decreases the tax that must be paid. In class we did calculations to understand how it worked which really helped I feel in applying this knowledge to different questions.

You guys are gonna smash it!!!
Isaac

mod edit: answered another question so I didnt increase post count and clog up the thread

[pokemonlv10]

Hello there, was wondering if anyone had any case studies for market segmentation, E-Marketing and Price? (For marketing Strategies)

[TheFreeMarketeer]

Can someone please redirect me to an exemplar business report? I find trouble when writing one.

[isaacdelatorre]

Hello there, was wondering if anyone had any case studies for market segmentation, E-Marketing and Price? (For marketing Strategies)

Hey there,

You can definitely make up case studies for these points but here are some I've gathered.
Segmentation
Qantas’s market segmentation is the process of dividing up the total range of potential or current customers into smaller discrete groups to facilitate analysis and planning

Behavioural Segmentation
Buyers are distinguished according to trip purpose (i.e. business and leisure/non-business travellers)
Business sector can include:
   Routine business (point to point business travel)
   Conference seminars
   Emergency business

To target different markets, these highly differentiated brands appeal to different customer segments:
   Jetstar (domestic) targets cost sensitive travellers primarily on low yielding leisure routes to Australian destinations like the Gold Coast, Sunshine Coast, Cairns and Alice Springs.
   Jetstar International targets leisure travellers to destinations like Bangkok, Phuket, Ho Chi Minh City, Osaka, Bali and Honolulu that were unprofitable Qantas operations.
   Jetstar Asia, Jetstar Pacific, Jetstar Japan and Jetstar Hong Kong to target the growing intra-Asia travel market.

E-marketing
For this one I'd look at any firm that has engaged with electronic marketing --> try to look further than just internet ads and suggest any company that does email advertising for example i get heaps of emails from cotton on and factorie. Another thing you could look at is snapchat filters - maccas, tiffany & co all engaged in this sort of marketing with snapchat filters and most had reasonable success.

Price
FOr this one, price as a strategy is a bit too broad but you would link it to the specific pricing strategies such as penetration pricing as used by people like ALDI to undercut the market and provide cheaper alternatives. Or look at rice skimming (charge highest price possible) for company's like apple with their innovative and high tech products also backed by the brand reputation.

I hope this helps you somewhat, good luck!!
Isaac

Can someone please redirect me to an exemplar business report? I find trouble when writing one.

Hey there, you should definitely have a look at the notes section on the forums... i've searched for business reports - there are 2 here.
Alternatively, I wrote up a business report guide which you can access here. It doesnt have my whole report; but I have included excerpts from a report I wrote in exam conditions and got 20/20.

Hope this helps!!!
Isaac

[hansolo9]

Hey guys

Can a Pty Ltd business issue shares?
So, if a question asked “recommend/discuss a source of finance for the business.” and the stimulus is Pty Ltd, would you never recommend issuing shares? Do the stimuli always have Pty Ltd?

[Vinnnnnnyyyyyy]

Hey guys

Can a Pty Ltd business issue shares?
So, if a question asked “recommend/discuss a source of finance for the business.” and the stimulus is Pty Ltd, would you never recommend issuing shares? Do the stimuli always have Pty Ltd?

A private company can issue shares but can only do so by offering to the people they choose. If I can recall correctly, there can be a maximum of 50 shareholders for a private company.

[isaacdelatorre]

Hey guys

Can a Pty Ltd business issue shares?
So, if a question asked “recommend/discuss a source of finance for the business.” and the stimulus is Pty Ltd, would you never recommend issuing shares? Do the stimuli always have Pty Ltd?

Hi there,

Since PTY Ltd means that it is a private business (recalling yr 11 info) the business can raise funds through offering private shares - it cant list on the ASX however, but it still issues shares - they are just of a private nature.
The stimulus wont always be for a private business. SO it's important that you pay attention to the legal structure of the business cos this also affects debt finance (debentures).

Hope this helps

Lol... didn't see Vinnnnnnyyyyy also post - what a legend!!!