2023 MAY-JUNE SERIES EDEXCEL GCSE BUSINESS MARK SCHEME PAPER 1B INVESTIGATING SMALL BUSINESS

2023 MAY-JUNE SERIES EDEXCEL GCSE BUSINESS MARK SCHEME PAPER 1B INVESTIGATING SMALL BUSINESS Mark scheme Section A Question Number Answer Mark 1 (a) C (1) AO1a Question Number Answer Mark 1 (b) B (1) AO1a Question Number Answer Mark 1 (c) Award 1 mark for identification of an advantage, plus 2 further marks for explaining this advantage, up to a total of 3 marks. Limited liability means that the owners (shareholders) can only lose the money invested in the business if it fails (1) because they are not responsible for all losses made by the business (1) which means they will not lose their personal possessions (1). There is a distinction between the business and the individual (1) which means the owner (shareholder) is not liable for the debts of the business that cannot be settled (1) which means the risk of the investment is reduced (1). Accept any other appropriate response. Answers that list more than one advantage with no explanation will be awarded a maximum of 1 mark. (3) AO1a = 1 AO1b = 2 Question Number Answer Mark 1 (d) Award 1 mark for identification of a disadvantage, plus 2 further marks for explaining this disadvantage, up to a total of 3 marks. Interest payments on business loans are likely to increase (1), which means expenses increase (1), which could result in lower profits (1). Consumers are likely to spend less (1), as the cost of borrowing money increases (1) which means sales of the business may fall (1). Accept any other appropriate response. Answers that list more than one disadvantage with no explanation will be awarded a maximum of 1 mark. (3) AO1a = 1 AO1b = 2 Question Number Answer Mark 2 (a) B, C (2) AO1a Question Number Answer Mark 2 (b) A, E (2) AO1a Question Number Answer Additional guidance Mark 2 (c) Substitution into correct formula: (120 + 150 + 130 + 140) x £5 (1) Answer: = £2,700 (1) Award full marks for correct numerical answer without working. Do not accept any other answer (2) AO2 Question Number Answer Mark 2 (d) Award 1 mark for identification of a reason, plus 2 further marks for explaining this reason, up to a total of 3 marks. To generate sales (1). This is because if the business understands customer needs and provides goods/services of the price/quality that customers want (1) customers are more likely to make a purchase (1). To survive (1). This is because if the business provides the customer with choice/ convenience (1) it is more likely to be able to generate sales (1). Accept any other appropriate response. Answers that list more than one reason with no explanation will be awarded a maximum of 1 mark. (3) AO1a = 1 AO1b = 2 Question Number Answer Mark 2 (e) Award 1 mark for identification of one benefit, plus 2 further marks for explaining this benefit, up to a total of 3 marks. Crowd funding can generate assistance (1) because investors may offer skills/ experience (1), which means the business is more likely to be successful (1). Crowd funding may generate publicity (1) which means the business is more likely to generate sales (1) which means it is more likely to succeed (1). Accept any other appropriate response. Answers that list more than one benefit with no explanation will be awarded a maximum of 1 mark. (3) AO1a = 1 AO1b = 2 Question Number Answer Mark 3 (a) C (1) AO1a Question Number Answer Additional guidance Mark 3 (b) Substitution into correct formula: Interest (on loans) = (£360 x 12 x 5) - £20,000 £20,000 (1) Answer: 8.00 % (1) Award full marks for correct numerical answer without working. Do not accept any other answer. (2) AO2 Question Number Answer Mark 3 (c) Award 1 mark for identification of a benefit, plus 2 further marks for explaining this benefit, up to a total of 3 marks. Sales may increase (1), because customers will find it quicker and more convenient using card payments (1), this means they are more likely to come back and buy other things from the business (1). Costs are reduced (1), because payments into the business can be made faster (1), reducing the need for an overdraft (1). Accept any other appropriate response. Answers that list more than one benefit with no explanation will be awarded a maximum of 1 mark. (3) AO1a = 1 AO1b = 2