UNIT 2 g OUTCOME 1

VCE® Business Management

SCHOOL-ASSESSED COURSEWORK
Introduction…..
Outcome 1

Outline the key legal requirements and financial record-keeping considerations when
establishing a business and explain the importance of establishing effective policies and
procedures to achieve compliance with these requirements.

Task

Short-Answer Test

This task will be marked out of 30.

It will contribute 100% of the marks allocated for this Outcome.

You will have 5 minutes of reading time and 45 minutes of writing time.

You cannot access any resources such as texts, notes, cheat sheets, etc.

Answer in the spaces provided.

Your teacher will advise you of any variation to these conditions.

This task covers a range of key knowledge and key skills from this outcome.

NAME:
Question 1 (2 marks)

Define the term ‘Financial Control Systems’.

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Question 2 (2 marks)

Explain an advantage of establishing a separate bank account for your business.

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Question 4 (4 marks)

Make a comparison between registering a business name and registering a domain name.

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Question 6 (4 mark)

Outline Corporate Social Responsibility (CSR) objectives that can be considered when
choosing suppliers.

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Question 7 (10 marks)

Foodtown USA is a new on-line business that specialises in the import and sale of
international food and snacks. They operate from a small warehouse in the Outer Western
Suburbs and sell throughout Australia.

Foodtown USA imports most of its products from the USA, with some additional
confectionery items being purchased from wholesalers in the UK and Japan.

a. Explain one policy and one procedure that may be implemented at Foodtown USA.
4 marks

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b. Analyse the effect that using overseas suppliers may have on decision-making at
Foodtown USA. 2 marks

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END OF SCHOOL-ASSESSED TASK

Solution Pathway…
Below are suggested responses. Teachers should consider the merits of alternative
responses.

Question 1 (2 marks)

Define the term ‘Financial Control Systems’.

 1 mark awarded for processes and their purpose.

Note: Students do not need all three aspects from the model answer.
 1 mark for referring to ‘financial’ being related in some way to money.

Sample high level response

Financial Control Systems are processes designed to instruct, monitor, and protect the
monetary elements of a business.

Question 2 (2 marks)

Explain an advantage of establishing a separate bank account for your business.

 1 mark for identifying a particular advantage of opening a bank account.

 1 mark for a detailed explanation of the advantage and how it will assist the
business.

Sample high level response:

Opening a separate bank account for a business will ensure that personal finances are not
confused with the business’s finances. This is advantageous as it allows for the owner to
accurately review the performance of the business, without misleading personal information.

Question 4 (4 marks)

Make a comparison between registering a business name and registering a domain

name.

 1 mark for explaining the meaning of registering a business name.

 1 mark for explaining the meaning of registering a domain name.
 1 mark for explaining a similarity:
o Both require a fee.
o Both secure your business’s identity.
 1 mark for explaining a difference.

Sample high level response

Registering a business name involves securing your business’s specific title through
applying to the Australian Securities and Investments Commission (ASIC) and paying a
registration fee. However, registering a domain name involves applying to secure a specific
website address through an internet service provider or other ICT based business.

A similarity is that both methods help secure your business’s identity as no other Australian
business will now be able to use your business name or web address. This avoids
customers becoming confused regarding who a business might be.

A difference is that your business name is your main identifying title for all interactions with
the public whilst your domain name is specific to the internet and does not have to be the
same as your business name.

Question 6 (4 marks)

Outline Corporate Social Responsibility (CSR) objectives that can be considered

when choosing suppliers. 2+2
marks

Note: Considerations offered must involve actions suppliers may take that go ‘above and
beyond the law’

 1 mark for identifying an appropriate form of Corporate Social Responsibility

objective in relation to choosing suppliers.
 1 mark for explaining why this identified consideration provides a social benefit.
 Repeat mark allocation for a second consideration offered by the student.

Sample high level response:

When choosing suppliers, especially from overseas, the business should consider how the
suppliers treat their employees. As human rights and safety standards may not be legislated
to the same extent overseas as they are in Australia, suppliers should be chosen that keep
employees safe from harm and refrain from using child labour or sweatshop conditions.

In addition, a business may consider using suppliers that are based locally. Not only does
this support the general community in which the business is based, but it can reduce the
need for overseas shipping which can reduce greenhouse gas emissions associated with
transport.
Question 7 (10 marks)

a. Explain one policy and one procedure that may be implemented at Foodtown
USA. 4 marks

 1 mark for explaining a policy used in business.

 1 mark for a specific link as to why the policy is beneficial to Foodtown USA.
 1 mark for explaining a procedure used in business.
 1 mark for a specific link as to why the procedure is beneficial to Foodtown USA.

Sample high level response:

One policy that may be required at Foodtown USA would be a Returns Policy. Foodtown
USA would need to consider how they are willing to accept returns of products, especially
those that have been opened, considering that they are trading in food products. They would
also need to include considerations of postage costs, especially if the customer is simply
dissatisfied with a product rather than it being faulty.

A procedure that may be required at Foodtown USA could be the steps involved in packing
and checking orders for customers to ensure accuracy before they are shipped. This may
involve checking the order of confectionery and other food products multiple times
throughout the packing process to make sure there are no errors prior to postage.

b. Discuss the effect customer databases may have on decision-making for

Foodtown USA. 4 marks

 1 mark for advantage to decision-making of using a customer database.

 1 mark for linking the advantage to Foodtown USA.
 1 mark for disadvantage to decision-making of using a customer database.
 1 mark for linking the advantage to Foodtown USA.

Sample high level response:

An advantage of establishing a customer database is that you can track the buying habits of
your customers. This can assist in deciding the correct levels of stock for Foodtown USA
that their customers are likely to buy. In addition, it can allow the Foodtown USA to decide to
promote similar products to repeat customers based on their buying habits and personal
preferences.

A disadvantage of establishing a customer database may have on decision-making is that it

can add extra time to processing orders, as additional record-keeping may be required on
every transaction in the business. At Foodtown USA this may add extra steps to processing
orders which may take away from time that could be better spent deciding on incorporating
new food items to stay ahead of the food import market.

c. Analyse the effect that using overseas suppliers may have on decision-making
at Foodtown USA. 2 marks
  1 mark for analysis of the case study and recognising that all inventory is purchased
from overseas suppliers.
 1 mark for explaining that this will making decision-making for difficult as products
from overseas are harder to control, assess and sample from overseas.

Sample high level response:

Foodtown USA will need to purchase their food products from the USA, UK and Japan as
their entire business model is importing food inventory from overseas that is not otherwise
available at most Australian retailers. This is likely to make it more difficult for Foodtown
USA to review or sample the foods they are considering adding to their range of products
offered. Consequently, this may negatively affect the quality of products offered.