2017 postexam briefing paper 1b presentations “risks being shared by joint venture partners”) x...

2017 BUSINESS, ACCOUNTING AND FINANCIAL STUDIES

EXAMINATION

PAPER 1

Section A: Multiple-Choice Questions

(selected)

Section B: Questions 1 - 5

Section A: Multiple-Choice Questions

Paper 1B Paper 1 Question 1

Paper 1B Question 1- Marking Scheme

Supplementary marking notes Q1a:

• Two (or more) businesses + form a new business entity + carry out joint

project(s) 1 mark

Two (or more) businesses (two or more owners ×) local company cooperate with overseas company (two companies) to form

a separate entity (company) to carry out joint project(s)

Joint project(s): develop, produce or sell products; with specific purpose

Supplementary marking notes

Q1b: • Advantages: (2 marks for ONE advantage with complete explanation) • easier entry into new market: share of goodwill of the participating

companies (without explaining “such goodwill may help the joint venture partners develop their market connection / know more about the market information) (1 mark only)

• bring in expertise: (knowledge technology goodwill ) • Synergetic effect • business risks can be reduced / decreased / lowered (without

explaining “risks being shared by joint venture partners”) X • Enjoy a lower profit tax ×

PAPER 1B QUESTION 1 – SAMPLE 1E

Relevant explanation on the characteristics of a joint

venture (i.e. a separate entity, formed by two or more

companies and aim at achieving a specific goal).


Showed two

advantages

of a joint

venture

with good

elaboration .


Unable to define ‘joint venture’ (missing ‘form a new entity’

and ‘to carry out joint projects’).

Showed two advantages without proper

elaboration.

PAPER 1B QUESTION 1 – SAMPLE 3C

考生能完整指出何謂合營企業

考生能清楚地列出合營企業的兩個好處，並附以清晰合理的解釋


考生未能完整指出何謂合營企業

考生能列出合營企業的兩個好處，但未能加以解釋

Paper 1B Question 2- Marking Scheme


Financial needs:

• paying daily expenses (daily living / daily life) to maintain (keep) her desired

lifestyle

(e.g. leisure, transportation, food, meals, entertainment, travelling, vacation)

• meeting contingencies, e.g. urgent medical expenses

(e.g. accidents, unexpected incidents, financial needs of family members)

• estate planning (expenses on funeral / burial arrangement)


Q2b:

Responsibilities:

• not to allow others to trade on her account

• to give clear instructions to her financial planner or broker


Needs of paying daily expenses and meeting contingencies

were correctly listed with detailed explanations.

Paper 1B Question 2 – Sample 1E

Two responsibilities of Mary were listed correctly.


The need of paying daily expenses

was explained repeatedly.

• The right to file a complaint was irrelevant .

• The responsibility to consider Mary’s own

risk tolerance level was correct.


考生正確解釋馬莉作為退休人士的兩項財務需要

考生能指出投資者應承擔的兩項責任


錯誤以投資工具或金融產品作為財務需要

考生指出投資者的其中一項責任了解投資工具的特性

Paper 1B Question 3 - Marking Scheme


(i) By functions / Functional departmentalisation / Functional organisation (1)

By functioning (0)

(ii) By products (1)

By production / By goods (0)

Q3c:

• Risk Management Department (1)

• Main role (relevant points)

One role description + at least one relevant / related example (2)

No role mentioned + at least two relevant examples explained (1) To identify and quantify the organisation’s exposures to accidental

loss. e.g. fire. burglary, flooding.(1+1)

To develop and adopt proper financial protection measures through risk

transfer risk avoidance, risk assumption and risk reduction programs. (1+1)

Assess and identify the risks involved in the company’s operation +

elaboration (1+1)

Develop the most suitable methods to protect the company

against different risks + elaboration (1+1)

Supplementary marking notes • Carry out four risks methods including risk avoidance, risk assumption, risk

reduction and risk transfer. (1)

• Responsible to claim compensation and minimize the risk of loss by risk reduction such as providing training to employees reducing operation mistakes.(0)

• Securing and maintaining adequate insurance coverage at the most reasonable cost.(example of risk transfer) ( 0 )

• 為公司預計風險,就公司意外損失作投保….或應對策略.(2)

• 有效地減少，避免或轉移有可能承受的經營風險 (1) (因未有提及角色但舉最少兩例子)

• 作出决策，例如:風險廻避及轉移,從而減低公司的損失. (1)

• 量度及預防企業損失，並且在意外後作出保償(0)

• 防止公司發生任何損失的管理 (0)

• 負責保險索償賠款 (0)

•


Q.3d Accrual Concept

• Wrong spelling of ‘accrual’ (0)

• All accrued expenses should be recorded in the financial period that accrued (0)

• Recorded +in the financial statements of year incurred = recognized (1)


Accurate

explanation on the

main role of the

Risk Management

Department.

Relevant accounting

principle with clear

explanation on

recording the

electricity expense.

Correct Answers


Misinterpretation of the main role of the Risk Management Department.

Incorrect form of

departmentalisation

Wrong spelling, no explanation of the Accrual concept

Correct


清楚及詳細闡述甲公司風險管理部門的主要角色

能適當利用應計原則解釋電費的記錄

甲及乙部答案正確


只能描述乙公司部門劃分方式

未能指岀哪一家公司控制幅度較闊

未能適當闡述甲公司風險管理部門的主要角色

未能適當利用應計原則解釋電費的記錄

正確部門

Supplementary marking notes (a)

Trial balance as at 31 December 2016

Dr Cr

$ $ 0.5

1 213 200 1 213 200

2016年12月31日試算表, 試算表2016年12月31日

試算表截至2016年12月31日 X


Q4b: • moral standards, ethical standards, ethical norms, a set of

moral conducts, a set of moral rules • 倫理標準, 道德標準, 道德規條, 道德規則 1 • a code of ethics, morals or standards of people 0 • non-legal requirements, social responsibilities 0 • 人權道德,社會道德, 應做社會責任, 避免做不道德的事情 0 • govern a business, guide a business, for business to follow • 規範企業, 企業遵守 1 • regulate the operation of a firm 0

Supplementary marking notes Q4c:

• With proper example/elaboration relating to the grocery firm

• Follow the law/ordinance =/= social responsible


(b) mentioned both moral rules and

guide behavior of business

(c) provided relevant point

with proper example

(a) well answered


(ii) provided relevant point with proper example


Well presented.


Moral or ethical

principles not

mentioned

The candidate could

not elaborate on what

is meant by a

comfortable working

environment

Relevant illustration


Omitted

column

headers

“Dr” and

“Cr”

Irrelevant point

Appropriate

explanation

Relevant

illustration


漏寫欄目“借” “貸”


考生能提供合適說明，並附以例子

考生描述正確

考生能提供恰當解釋


考生能提供恰當解釋

考生能提供合適例子，但未能提供說明

考生能提供合適說明並附以例子


考生編制的不是試算表


不是商號對員工履行的社會責任

描述欠清晰

考生能提供合適說明並附以例子

Supplementary marking notes (a) 純損 / 淨損失 / 淨虧損 / 年度損失

Common mistakes:

• inappropriate heading: as at, without $

• taking capital as opening inventory

• missing closing inventory

• 損益帳

• Dec

• 2016年12月31日的損益表

(b) MBO, plan, unity of direction (X)

(c)

• set goals provide standards for employees to follow ()

• employees know the goal of the company clearly for them to follow ()

• employees know what the company want them to do ()

• use of resource effectively/有效運用資源 (with appropriate

explanations) ()

• advantages of MBO (X)


closing inventory missing,

incorrect Gross profit & Net Loss


Candidate could provide one relevant point with explanation.

Repeated point


Incorrect COGS and

missing Gross Profit


candidate provided

one point without

relevant

explanation

X

X

Irrelevant point


考生能提供合適例子並附予適切解釋


購貨應減購貨退出而不是加

標題欠完整

考生誤把購貨折扣及銀行透支當作營運費用


考生能提供合適理由並能附以適切解釋

X

考生能提供合適理由但欠缺解釋

2017 postexam briefing paper 1b presentations “risks being shared by joint venture partners”) x...

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