business, accounting and financial studies examination 2013 … · 2014-11-26 · business,...

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BUSINESS, ACCOUNTING

AND FINANCIAL STUDIES

EXAMINATION 2013

PAPER 2B

Section A

Briefly describe three uses of performance

appraisal to a company. (6 marks)

QUESTION 1

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QUESTION 1 (Good)

Answer elaborated with good illustration

QUESTION 1 (Average)

Relevant points given,

but failed to elaborate

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QUESTION 1 (Poor)

Candidate gave irrelevant answers (definition of

appraisal)

Explain three types of factors that a company

would consider to evaluate the risk of

granting credit to a customer. (6 marks)

QUESTION 2

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Answer elaborated with good illustration

QUESTION 2

(Good)

Identified relevant factors to evaluate the risk of granting credit

QUESTION 2 (Average)

Unable to identify all the factors correctly

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From the perspective of customer relationship

management, give two reasons why retaining

existing customers is more important than

attracting new customers. (4 marks)

QUESTION 3

Able to make proper

justification between

retaining existing

customers as

compared to

attracting new

customers.

QUESTION 3

(Good)

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QUESTION 3 (Average)

Unable to make proper justification between

retaining existing customers as compared to

attracting new customers.

QUESTION 3 (Poor)

Candidate gave irrelevant answers

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Describe in sequence three progressive

disciplinary actions that a company can

adopt if an employee is guilty of repeated

misconduct. (6 marks)

QUESTION 4

QUESTION 4 (Good)

Answer elaborated with good illustration

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QUESTION 4 (Average)

Relevant points given, but failed to give brief

explanation

QUESTION 4 (Poor)

Candidate gave irrelevant answers

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Suggest two advantages to a multi-national

corporation of adopting divisional

departmentalisation by geographical location.

(4 marks)

QUESTION 5

QUESTION 5 (Average)

Answer elaborated with illustration

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QUESTION 5 (Poor)

Mistakenly answered from the viewpoint of a

regional branch instead of the viewpoint of a multi-

national corporation

Give two reasons to explain why contracts are

important in the business sector. (4 marks)

QUESTION 6

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QUESTION 6 (Good)

Well elaborated with illustration

QUESTION 6 (Average)

Only answered the essential elements of a contract

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QUESTION 6 (Poor)

Candidate gave irrelevant answers

BUSINESS, ACCOUNTING AND

FINANCIAL STUDIES

EXAMINATION 2013

PAPER 2B

Section B

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QUESTION 7

Yummy Group --- A listed fast food chain

Two Concerns:

(1) The fast food market is saturated

– want to diversify the business to health

food market

(2) Recent incidents of food poisoning

– have to formulate strategies to manage

the risk.

QUESTION 7(a)

Suggest two risk management strategies for handling

the risk of food poisoning faced by Yummy Group.

(4 marks)

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QUESTION 7(a) GOOD

Correct Risk Management Strategy + relevant

explanation

Question 7(a) Average

第二點的例子與風險管理策略並不配合。

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沒有指明採用的風險管理策略名稱。

Question 7(a) Poor

QUESTION 7(b)

Give three types of data collection method that Miss Ma can use

in conducting the market research. Explain each with an example.

(6 marks)

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QUESTION 7(b) Good

清晰的闡述，恰當的方法及例子。

QUESTION 7(b) AVERAGE

第二點未能先指出一種資料蒐集的方法。

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QUESTION 7(b) POOR

未有指出三種資料蒐集的方法，只引例，不符題目的要求。

With reference to the criteria for evaluating a market segment,

explain why the middle-class is an effective market segment

for organic food restaurants. (6 marks)

QUESTION 7(c)

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QUESTION 7(c) GOOD

QUESTION 7(c) Average

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QUESTION 7(c) POOR

Most answers are irrelevant.

List three sources of capital for raising $100 million to

finance the setting up of the organic food restaurants.

(3 marks)

QUESTION 7(d)

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QUESTION 7(d) Good

All correct.

QUESTION 7(d) Average

資金來源必須是長期融資的方法

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QUESTION 7(d) Poor

All answers are incorrect.

With reference to any three elements of the promotion

mix, suggest one way each to promote the organic food

restaurants. (6 marks)

QUESTION 7(e)

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QUESTION 7(e) GOOD

恰當的推廣組合元素+ 針對個案的方法

QUESTION 7(e) AVERAGE

Relevant points given but not able to

show the ways of promotion clearly.

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QUESTION 7(e) POOR

Confused promotional mix with

marketing mix (4Ps).

QUESTION 8

Wing Hung --- a locally-based department store

chain

Three Key Concerns :

(1) Ways to motivate the employees with the

characteristics of McGregor’s Theory X.

(2) Provide the training to enhance employees’

quality of service.

(3) Evaluate the installation of on-line shopping

system.

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QUESTION 8(a)

With reference to McGregor’s Theory X and Theory Y,

state three assumptions that Richard holds in relation

to managing his employees. Illustrate each with an

example. (6 marks)

QUESTION 8(a) GOOD

Correct assumptions with relevant

examples from the case.

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QUESTION 8(a) AVERAGE

第三點不是適切的假設。

QUESTION 8(a) POOR

Stated one correct assumption

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QUESTION 8(b)

Apart from providing above market level salaries,

suggest three other types of monetary compensation

methods that Wing Hung could adopt to motivate its

employees to perform better. (6 marks)

QUESTION 8(b) GOOD

恰當的財務報酬方式及解釋

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QUESTION 8(b) AVERAGE

答案不盡恰當

QUESTION 8(b) POOR

Failed to provide correct types of

monetary compensation methods.

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QUESTION 8(c)

With reference to two characteristics of

service, give one reason each to explain why

training can help Wing Hung to meet today’s

service standard. (4 marks)

QUESTION 8(c) GOOD

Able to state the characteristics of service

with relevant explanation.

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QUESTION 8(c) AVERAGE

Identified two characteristics of service

but explanations are not clear.

QUESTION 8(c) POOR

Failed to state the characteristics of

service.

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QUESTION 8(d)

(i) Calculate the payback period of the on-line shopping

project. (1 mark)

(ii) Give two reasons why it is not appropriate to use

the payback period method to evaluate the on-line

shopping project. (4 marks)

QUESTION 8(d) GOOD

Clear concept of payback period.

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QUESTION 8(d) AVERAGE

答案未能全面針對歸本期而論

QUESTION 8(d) POOR

Unable to provide relevant answers

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QUESTION 8(e)

(i) Based on Raymond’s estimates of the cash flows for

the on-line shopping project, and assuming a

discount rate of 8% per annum, calculate the net

present value of the project (to the nearest dollar).

Show your workings. (2 marks)

(ii) According to your calculation in (e) (i), explain

whether the project should be adopted. (2 marks)

QUESTION 8(e) GOOD

Correct calculation and explanation.

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QUESTION 8(e) AVERAGE

Wrong calculation but able to show the

reason why the project should be adopted.

QUESTION 8(e) POOR

Incorrect concept of net present value.

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BUSINESS, ACCOUNTING

AND FINANCIAL STUDIES

EXAMINATION 2013

PAPER 2B

Section C

Paper 2B- Question 9

A retail chain uses accounting ratios and budget variance analysis to evaluate

its performance.

(a) Illustrate with example what aspects of the retail chain’s performance could be evaluated by accounting ratios. (12 marks)

− liquidity ratios: measures the chain’s ability to repay short-term

debts, e.g. current ratio, quick ratio

− debt management ratios/ solvency ratios: measures the

chain’s use of financial leverage, e.g. debt ratio, debt to equity

ratio

− activity ratios/ management efficiency ratios: measure how

efficiently the chain utilises its assets, e.g. inventory turnover,

average collection period

− profitability ratios: measure the earning power of the chain,

e.g. gross profit ratio, net profit margin

(3 marks for each relevant point, max. 12 marks)

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− sales: e.g. keen competition, inappropriate merchandising

− inventories: e.g. wastage, change in prices, change in foreign

exchange rates

− labour: e.g. change in wage rate and labour efficiency

− rental: e.g. change in rent level

(3 marks for each relevant cause, max. 8 marks)

(b) Explain the possible causes of budget variances in the retail chain.

(8 marks)

Sample 1 (Average)

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除第一點外，考生未能清楚解釋相關的會計比率。

考生未能列出預算差異的可能成因。

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Sample 2 (Poor)

考生未能解釋相關的會計比率。

考生只能列出預算差異兩方面的可能成因，但未有適切的解釋。

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Sample 3 (Good)

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Candidate was able to explain the aspects of

accounting ratios with relevant examples.

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Candidate was able to explain two relevant causes

of budget variance.

Paper 2B - Question 10

As its product reaches the growth stage of the product life cycle, a company considers expanding its business and recruiting more managers internally.

(a) Describe the characteristics of the growth stage of the product life cycle. (12 marks)

− high growth in sales

− begin to earn substantial profit

− drop in average cost

− competition becomes keener

− customers are early adopters

(3 marks for each relevant characteristic, max. 12 marks)

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− promotion-from-within policy is well-accepted by employees

− the company and the employees are familiar with each other

− lower recruitment cost and orientation cost

− higher motivation to existing employees

(3 marks for each relevant advantage, max. 8 marks)

(b) Explain the advantages to the company of recruiting managers internally. (8 marks)

Sample 1 (Average)

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Candidate was able to explain some characteristics

of the growth stage.

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Candidate was not able to explain the advantages

properly.

Sample 2 (Poor)

考生只能列出部分特性，亦未有適切的解釋。

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考生只能列出一小部分好處，亦未有適切的解釋。

Sample 3 (Good)

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Candidate was able to explain the characteristics clearly,

but tended to elaborate on the marketing strategies.

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Candidate was able to explain the advantages to

the company properly.