Buzz·Updated on 7 Oct 2019. Posted on 1 Oct 2019Let's See If You Can Score At Least 50% On This Year 12 Business Studies ExamMy brain already hurts.by Isha BassiPost WriterFacebookPinterestTwitterMailLink BuzzFeed / Getty Images In which aspect of a business does continuous improvement occur? Quality assurance Correct Incorrect Quality assurance Legal compliance Correct Incorrect Legal compliance Just-in-time management Correct Incorrect Just-in-time management Total quality management Correct Incorrect Total quality management A sole trader invests $500,000 into her business. What is thisan example of? An overdraft Correct Incorrect An overdraft Retained profits Correct Incorrect Retained profits Internal debt finance Correct Incorrect Internal debt finance Internal equity finance Correct Incorrect Internal equity finance Sarah works 40 hours per week. Her contract entitles her to sick leave, paid annual leave and superannuation. What type of employment is this? Casual full-time Correct Incorrect Casual full-time Casual part-time Correct Incorrect Casual part-time Permanent full-time Correct Incorrect Permanent full-time Permanent part-time Correct Incorrect Permanent part-time Which approach is being used when a business creates a focus group to evaluate a product? Marketing Correct Incorrect Marketing Production Correct Incorrect Production Selling Correct Incorrect Selling Standardisation Correct Incorrect Standardisation Which of the following actions is an example of corporate social responsibility? Sponsoring a sporting event Correct Incorrect Sponsoring a sporting event Opening a manufacturing plant Correct Incorrect Opening a manufacturing plant Introducing a community health program Correct Incorrect Introducing a community health program Paying compensation for a work-related injury Correct Incorrect Paying compensation for a work-related injury The expense ratio (total expenses ÷ sales) is always: The difference between the net profit ratio and the gross profit ratio Correct Incorrect The difference between the net profit ratio and the gross profit ratio The difference between sales and the gross profit ratio Correct Incorrect The difference between sales and the gross profit ratio Greater than the gross profit ratio Correct Incorrect Greater than the gross profit ratio Greater than the net profit ratio Correct Incorrect Greater than the net profit ratio Solvency is the ability of a business to: Maximise its profits Correct Incorrect Maximise its profits Increase its market share Correct Incorrect Increase its market share Meet its long-term financial commitments Correct Incorrect Meet its long-term financial commitments Meets its short-term financial commitments Correct Incorrect Meets its short-term financial commitments Which of the following is an example of a unit trust? An investor purchases shares in a public company Correct Incorrect An investor purchases shares in a public company Investors lend money directly to businesses and receive interest in return Correct Incorrect Investors lend money directly to businesses and receive interest in return Investors pool their money together and it is invested in the property market Correct Incorrect Investors pool their money together and it is invested in the property market An investor deposits money with a financial institution and receives a fixed rate of interest Correct Incorrect An investor deposits money with a financial institution and receives a fixed rate of interest Ruth observed that a work colleague was stealing and reported the theft to her supervisor. As a result, Ruth's employment was terminated. What is this an example of? Performance management Correct Incorrect Performance management Redundancy Correct Incorrect Redundancy Retrenchment Correct Incorrect Retrenchment Unfair dismissal Correct Incorrect Unfair dismissal A business plans to increase its stock to be ready for the grand opening of five new stores. This shows the interdependence between which business functions? Operations and finance Correct Incorrect Operations and finance Operations and marketing Correct Incorrect Operations and marketing Finance and human resources Correct Incorrect Finance and human resources Human resources and marketing Correct Incorrect Human resources and marketing Customers at a furniture store are asked to give their postcodes at the checkout. What is this an example of? Primary research to determine target market Correct Incorrect Primary research to determine target market Secondary research to determine target market Correct Incorrect Secondary research to determine target market Primary research to determine product life cycle Correct Incorrect Primary research to determine product life cycle Secondary research to determine product life cycle Correct Incorrect Secondary research to determine product life cycle What is a characteristic of external equity finance? Specific maturity date Correct Incorrect Specific maturity date Low interest payments Correct Incorrect Low interest payments Fixed returns to owners Correct Incorrect Fixed returns to owners Diluted business ownership Correct Incorrect Diluted business ownership Why might a business adopt a standardised global approach to marketing? To cater for local tastes Correct Incorrect To cater for local tastes To minimise risk by hedging Correct Incorrect To minimise risk by hedging To increase market segmentation Correct Incorrect To increase market segmentation To take advantage of economies of sale Correct Incorrect To take advantage of economies of sale When pricing a potential job, a plumber considers how long the job will take and how difficult it will be. What pricing method is being used? Cost-based Correct Incorrect Cost-based Market-based Correct Incorrect Market-based Customer-based Correct Incorrect Customer-based Competition-based Correct Incorrect Competition-based An entrepreneur uses social media to sell make-up to her friends and acquaintances. What marketing strategy is the entrepreneur using? E-marketing Correct Incorrect E-marketing Personal selling Correct Incorrect Personal selling Product differentiation Correct Incorrect Product differentiation Intensive channel choice Correct Incorrect Intensive channel choice Which of the following are both sources of funds appropriate for a business purchasing extra stock before a busy trading period? Debentures and factoring Correct Incorrect Debentures and factoring Retained profits and unsecured notes Correct Incorrect Retained profits and unsecured notes Debentures and bank overdraft Correct Incorrect Debentures and bank overdraft Retained profits and bank overdraft Correct Incorrect Retained profits and bank overdraft A soup manufacturer finds it difficult to cope with the increase in demand for soup in winter. Which performance objective could assist this business to meet the demand? Cost Correct Incorrect Cost Customisation Correct Incorrect Customisation Dependability Correct Incorrect Dependability Flexibility Correct Incorrect Flexibility Which of the following lists three examples of transformed resources? Customers, information, materials Correct Incorrect Customers, information, materials Facilities, information, technology Correct Incorrect Facilities, information, technology Customers, human resources, materials Correct Incorrect Customers, human resources, materials Facilities, human resources, technology Correct Incorrect Facilities, human resources, technology Kim is an independent contractor who cleans a school. Which of the following statements is true regarding Kim's employment? She is entitled to four weeks annual leave Correct Incorrect She is entitled to four weeks annual leave Her employment is subject to award conditions Correct Incorrect Her employment is subject to award conditions She is responsible for paying her own income tax Correct Incorrect She is responsible for paying her own income tax She is entitled to maternity leave provided by the school Correct Incorrect She is entitled to maternity leave provided by the school Which of the following is an example of legal compliance for a sports store? Paying taxes on time Correct Incorrect Paying taxes on time Offsetting carbon emissions Correct Incorrect Offsetting carbon emissions Induction of new employees Correct Incorrect Induction of new employees Paying dividends to shareholders Correct Incorrect Paying dividends to shareholders Questions were taken from previous HSC Business Studies exams, available on the NSW Education Standards Authority website.