1 A business sells jewellery to 15–20 year olds.
Which type of market is the business targeting?

(A) Consumer

(B) Intermediate

(C) Niche

(D) Resource

2 Which of the following contains two examples of overt industrial action?

(A) Lockouts and sabotage

(B) Pickets and absenteeism

(C) Staff turnover and strikes

(D) Overtime bans and work-to-rule

3 A business uses factoring to pay creditors.
Which financial objective is the business trying to achieve?

(A) Efficiency

(B) Liquidity

(C) Profitability

(D) Solvency

4 Which of the following is a legal responsibility that supermarkets have towards their customers?

(A) To deliver quality service

(B) To advertise weekly specials

(C) To offer a money-back guarantee

(D) To provide a safe shopping environment

5 Which of the following is an example of promotion as a marketing strategy for a new line of shampoo?

(A) Creating a brand name

(B) Making it available only in hair salons

(C) Packaging in environmentally-friendly bottles

(D) Advertising it as adding shine and volume to hair

6 A worker and a manager are using mediation to resolve a dispute.
Which of the following describes mediation in this situation?

(A) The worker and manager meeting alone to resolve the dispute

(B) A neutral third person assisting both parties to resolve the dispute

(C) Both parties attending a compulsory conference to reach an agreement

(D) A judge hearing the dispute in court and making a legally binding decision

7 How could an Australian business expand internationally?

(A) By merging with a business operating overseas

(B) By sending management to an overseas conference

(C) By reducing costs in overseas manufacturing plants

(D) By buying overseas-made products from an Australian importer

8 Which of the following contains two features of behavioural management theory?

(A) Open communication and division of labour

(B) Team structures and participative leadership style

(C) Wide span of control and systems management approach

(D) Flat organisational structure and autocratic decision-making

9 A business makes unauthorised copies of foreign movies and sells them at the recommended retail price of the original product.
Which of the following describes this practice?

(A) Sugging consumers

(B) Dumping illegal products

(C) Violating intellectual property rights

(D) Engaging in resale price maintenance

10 Which of the following is an external source of change for a business?

(A) Increase in consumer spending power

(B) Modification of its marketing campaign

(C) The decision to market its product using e-commerce

(D) Provision of electronic payment facilities for customers

11 An Australian business is negotiating an order with a new overseas customer.
Which method of payment would involve the greatest risk for the Australian business?

(A) Open account

(B) Letter of credit

(C) Bill of exchange

(D) Payment in advance

12 The table shows debt to equity ratios for a business in 2008 and 2009.

2008 100% (1 : 1)
2009 75% (0.75 : 1)

How has the financial position of the business changed from 2008 to 2009?

(A) Reduced solvency and increased risk

(B) Reduced solvency and decreased risk

(C) Improved solvency and increased risk

(D) Improved solvency and decreased risk

13 Which strategy may achieve effective employment relations for both employers and employees?

(A) Outsourcing product manufacture

(B) Determining levels of staff turnover

(C) Offering share options to employees

(D) Estimating the cost of retrenchment packages

16 An Australian retailer of motor parts is considering vertical integration to manage its global business.
Which vertical integration strategy might this business use?

(A) Purchase a foreign manufacturer of motor parts.

(B) Diversify by selling car cleaning products internationally.

(C) Set up e-commerce facilities with multinational suppliers.

(D) Organise an intermediary to distribute motor parts overseas.

17 Which of the following is an ethical business practice?

(A) Transferring funds to tax havens

(B) Using company funds for personal use

(C) Taking over a company to strip its assets

(D) Independent checking of financial records

18 Which of the following is a political influence on global business operations?

(A) Varying business practices

(B) Increases in tariffs paid on imports

(C) Use of new communications technology

(D) Reduced insurance premiums on exports

19 Which of the following reasons for resistance to change is a financial cost to a business?

(A) Inertia of managers

(B) Loss of career prospects

(C) Re-organisation of plant layout

(D) Cultural incompatibility in mergers

20 Which of the following includes both government and employers in the employment relations process?

(A) A drive by unions to increase membership

(B) The Retail Employers Association releasing a media statement

(C) The introduction of new Occupational Health and Safety legislation

(D) Workers negotiating with management to increase salary and improve conditions