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Mark Scheme (Results) Summer 2024 Pearson Edexcel GCE A Level In Business (9BS0) Paper 03 Investigating Business in a competitive environment

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1(a) Knowledge 2, Application 2, Analysis 2, Evaluation 2 ● A private limited company is a business owned by shareholders that have limited liability. ● Vinted has raised €250m from selling additional shares to investors invited by existing shareholders to help fund expansions into new markets ● As Vinted is a private limited company it means existing shareholders control who can buy new shares in the business, increasing financial control and preventing a takeover from rivals, such as Alibaba ● Limited liability is less risky for shareholders, such Milda Mitkute and Justas Janauskas, compared to a different form of business, such as a partnership, as they are not responsible for the debts if the business fails. Possible counterbalance ● As a private limited company, Vinted cannot sell shares on the stock market, so raising share capital is limited to existing shareholders and those invited by current shareholders ● New shareholders, such as those who helped raise €250m, will become part owners of the business and expect a share of future profits (dividends) ● Private limited companies, such as Vinted, may face additional costs due to having to create their accounts and have them externally audited.

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Institution
2024 Pearson Edexcel
Course
2024 Pearson Edexcel

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Mark Scheme (Results)

Summer 2024




Pearson Edexcel GCE A Level
In Business (9BS0)
Paper 03 Investigating Business in a competitive
environment

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Summer 2024
Question Paper Log Number P75857A
Publications Code 9BS0_03_2406_MS
All the material in this publication is copyright.
© Pearson Education Ltd 2024

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