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Applying business knowledge to a critical problem · Part 2 of 3
15 exam-style questions with model answers, plus 25 quick multi-choice questions — every question on this part of the standard, grouped by the 5 pages of notes they come from.
Write a full answer before you reveal the model one. That comparison is where the learning happens.
Explain TWO reasons why opening a new store in another region may prove to be an ineffective growth strategy.
How could an ineffective growth strategy impact a business's economic sustainability?
An invented retail chain's new South Island store is losing money after twelve months. Management can close it, or invest further in marketing and range to make it work.
Justify, with TWO reasons, which solution is likely to be more effective.
Explain TWO reasons why ineffective leadership could lead to poor results in a business.
Using an example, fully explain how ineffective leadership could threaten the continuation of a business.
A business's most senior technical specialist, who holds its key customer relationships, has resigned and is joining a competitor.
Justify, with TWO reasons, whether the business should focus on retaining the customers or on rebuilding internal capability.
Explain what is meant by an internal control, and give an example of one that helps prevent fraud.
Fully explain how a failure of internal controls could threaten the continuation of a large business.
After discovering a fraud, a business can introduce comprehensive new controls across every process, or target controls at the highest-risk areas only.
Justify, with TWO reasons, which approach would be more effective.
Explain a factor that might influence a new competitor's decision to enter a market.
Fully explain how the emergence of a new competitor could threaten an established business's future sales and profitability.
An invented specialist retailer is losing sales to customers who inspect products in its store and then buy online more cheaply. It can match online prices, or charge for expert advice and fitting.
Justify, with TWO reasons, which solution is likely to be more successful.
Explain why offering performance bonuses based on the quantity of work completed could lead to unethical practices by workers.
Fully explain a consequence of unethical practices by workers in terms of how it will impact a business's brand reputation.
The business can respond either by removing the performance bonus entirely, or by redesigning it so bonuses depend on quality as well as quantity.
Justify, with TWO reasons, which solution would be more effective.