Practice Exam Short Answer

1) A chain of fast food restaurants recently entered the Australian market with the establishment of six restaurants throughout New South Wales. It is currently undertaking an intensive advertising campaign aimed at teenagers via social networking sites.

(a) Outline ONE ethical issue that may arise from the restaurant chain’s marketing campaign.

(b) Explain how the restaurant chain’s marketing is interdependent with ONE other key business function.

2) XNH Pty Ltd assembles electronic motors from imported parts. The diagram below shows the sequencing of tasks in the assembly of the motors.

(a) Calculate the critical path for XNH Pty Ltd.

(b) Why would XNH Pty Ltd use a sequencing tool such as the one shown?

(c) Why are the inputs for a manufactured product different from the inputs in the provision of a service?

3. Why are the processes of human resource management important for business to achieve a competitive advantage?

4. A large Australian public company is planning a takeover of a competitor, and requires $120 million. The management has decided to issue shares to existing and new shareholders, but will still require additional finance.

(a) Identify ONE internal and ONE external source of finance that the company could use to raise the additional finance it requires.

(b) To what extent could global market influences affect the success of the share issue?

5. The income statement for a business is shown.

(a) Calculate the gross profit ratio (gross profit / sales) for SSL Systems PTY Ltd for 2011.

Show all working.

(b) The net profit ratio (net profit ÷ sales) decreased from 10% in 2010 to 1% in 2011.

State TWO possible reasons for the change in profitability.

(c) Recommend TWO marketing strategies that SSL Systems Pty Ltd could adopt to improve profitability.