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Level 1Business Studies
90839: Apply business knowledge to an operational problem(s) in a given small business context

Credits: Four

Check that you have entered your name and school in the box at the top of this page.

You should answerALL parts ofALL questions in this booklet.

Use evidence from the given context to support your answers and refer to relevant business knowledge and/or Māori business concepts in your answers.

Pull out the resource booklet for Business Studies 1.3 from the centre of this booklet.

If you need more space for any answer, use the page(s) provided at the back of this booklet and clearly number the question.

Check that this booklet has pages2–9 in the correct order and that none of these pages is blank.

YOU MUST HAND THIS BOOKLET TO YOUR TEACHER AT THE END OF THE ALLOTTED TIME.

For Assessor’s
use only / Achievement Criteria
Achievement / Achievement
with Merit / Achievement
with Excellence
Apply business knowledge to an operational problem(s) in a given small business context. / Apply detailed business knowledge to an operational problem(s) in a given small business context. / Apply comprehensive business knowledge to an operational problem(s) in a given small business context.
Overall Level of Performance

Business Studies 90839

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You are advised to spend 60 minutes answering the questions in this booklet.

Read ALL of the resources in the resource booklet for Business Studies 1.3 before you begin answering the questions in this booklet.

Question One: A Cash Flow problem

Use theinformation inResources A and Bof the resource booklet and your business knowledge to complete the following tasks.

Trek Travhas a cash flow problem thatis affecting the daily operations of the business.

(a)(i) Define the business term cash flow.

(ii) Describe ONE effect the cash flow problem will have on Trek Trav in the long-term.

(b)Discuss ONEcause of the cash flow problem that Trek Trav faces.

In your answer you should:

  • describe afactor, issue,or situation that helped cause the cash flowproblem
  • explain howit contributed to thecash flow problem.

(c)Discussthe best solutionfor TrekTrav that would deal with the cause you wrote about in
part (b).

In your answer, you should:

  • identifyat least TWO appropriatesolutions
  • choose the bestsolution and explain how it would deal with the cause
  • explain why it would be a better solution thanONE other solution.

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Question Two: Marketplace changes

Use the information inResource Dof the resource booklet and your business knowledge to complete the following tasks.

Changing demographicsin the city of Lakeside will create a problem for Trek Travin the future as its target market will change.

(a)(i) Describe what is meant by the term demographics.

(ii) DescribeONEtrendshown by the Lakeside demographicsthat will be important for Trek Trav.

(b)Discuss how thedemographic trendyou described in part (a) (ii) will create along-term problem for Trek Trav.

In your answer, you should:

  • describe thelong-termproblem
  • explain how the trend would cause the long-term problem.

(c)Discuss the best solutionfor Trek Travthat woulddeal with the long-term problem you wrote about in part (b).

In your answer, you should:

  • identify at least TWOappropriatesolutions
  • choose the best solution and explain how it would solve theproblem
  • explain why it would be a better solution that ONE other solution.


Question THREE: An ‘Act of God’

Use the information inResource Cof the resource booklet and your business knowledge to complete the following tasks.

A tropical disease has spread to one of the resort islands used by Trek Trav. The New Zealandgovernment issued a warningto tourists advising them not to visit that island. The outbreak of the tropical disease is considered to be an ‘act of God’ by the travel industry.

(a)(i) Describe what is meant by an‘act of God’in relation tobusiness.

(ii)Describe how Trek Trav OR its clients might respond to the government’s advice.

(b)Discuss why theoutbreak of the tropical diseaseis likely to create a bookingproblem for Trek Trav.

In your answer, you should:

  • describe the bookingproblem
  • explain why the tropical diseaseis likely tocausethe booking problem.

(c)Discussthe best solution for Trek Trav to resolve this booking problem.

In your answer, you should:

  • identify at least TWOappropriatesolutions
  • choose the best solution and explain how it would resolve the problem
  • explain why it would be a better solution thanONE other solution.

Business Studies 90839

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Extra paper for continuing your answers, if required.
Clearly number the question.

Question
number

Business Studies 90839

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Extra paper for continuing your answers, if required.
Clearly number the question.

Question
number

Business Studies 90839