Question 1
Dividing a market into groups by customers' age, income and gender is called:
How to answer Section II short-answer questions
Forty marks of short answers, about 12 items. The marks follow the command word: identify names a point, outline sketches it, explain adds cause and effect for the business in front of you.
| Marks | 40, about 12 items |
|---|---|
| Questions | Four to six, which may be in parts |
| Often on | A short stimulus: a business, a table or a graph |
| Ratios | The seven in the Finance topic |
Answer to the command word
- Identify or outline: name the point, then a sentence that says what it is for this business.
- Explain: the point, how it works for this business, and what it leads to (cause and effect).
- Compare or distinguish: say how the two are alike and how they differ, in the same sentence or the next.
Use the stimulus
Most short answers are set on a business. Name it, use its figures and products, and tie each point to them: a general answer to a specific question loses the application marks.
Try 2 questions
Question 2
| Item | Dollars |
|---|---|
| Sales | 2 000 000 |
| Net profit | 210 000 |
| Total assets | 2 400 000 |
| Total liabilities | 1 000 000 |
| Total equity | 1 400 000 |
The table shows figures for Ironbark Engineering for last year. What is its return on equity ratio?
Next step
Questions people ask
How long should a 4-mark answer be?
Long enough to make two developed points about the business, usually four to six sentences.
Do I need to define terms?
Use the course's terms exactly; define one only when the question asks or when it makes your point clearer.