Mark Scheme (Final)

Summer 2019

Pearson Edexcel International

GCSE Business 4BS1
Paper 02R: Investigating Large Businesses
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Summer 2019
Publications Code 4BS1_02R_MSC_2019_08_22
All the material in this publication is copyright
© Pearson Education Ltd 2019
General Marking Guidance

 All candidates must receive the same treatment. Examiners must mark the
first candidate in exactly the same way as they mark the last.

 Mark schemes should be applied positively. Candidates must be rewarded

for what they have shown they can do rather than penalised for omissions.

 Examiners should mark according to the mark scheme not according to

their perception of where the grade boundaries may lie.

 There is no ceiling on achievement. All marks on the mark scheme should

be used appropriately.

 All the marks on the mark scheme are designed to be awarded. Examiners
should always award full marks if deserved, i.e. if the answer matches the
mark scheme. Examiners should also be prepared to award zero marks if
the candidate’s response is not worthy of credit according to the mark
scheme.

 Where some judgement is required, mark schemes will provide the

principles by which marks will be awarded and exemplification may be
limited.

 When examiners are in doubt regarding the application of the mark scheme
to a candidate’s response, the team leader must be consulted.

 Crossed out work should be marked UNLESS the candidate has replaced it
with an alternative response.

 Mark schemes will indicate within the table where, and which strands of
QWC, are being assessed. The strands are as follows:

i) ensure that text is legible and that spelling, punctuation and grammar
are accurate so that meaning is clear
ii) select and use a form and style of writing appropriate to purpose and to
complex subject matter
iii) organise information clearly and coherently, using specialist vocabulary
when appropriate.
Question Answer Mark
Number
1 (a) (i) AO1 = 1 mark

C – Tertiary
(1)

Question Answer Mark

Number
1 (a)(ii) AO1 = 1 mark

A – Rent
(1)

Question Answer Mark

Number
1 (a) (iii)
We are aware that there is no correct answer to
this item. Because of this, all candidates will be
awarded 1 mark for this question 1 (a) (iii).
An error was made with the multiple-choice
distractors. We take our responsibility of
ensuring the accuracy of our assessments very
seriously and we are reviewing candidate
responses to ensure no one is disadvantaged. (1)

Question Answer Mark

Number
1 (a)(iv) AO2 = 1 mark

D – Could charge lower prices

(1)

Question Answer Mark

Number
1 (a) (v) AO1 = 1 mark

B – Reinvested profit
(1)

Question Answer Mark

Number
1 (a)(vi) AO2 = 1 mark

A – 4.03%
(1)
Question Answer Mark
Number
1 (b) AO1 = 1 mark
Award 1 mark for correct definition of crowdfunding.

 Raising money from many people for a new

project via the internet (1).
(1)

Question Answer Mark

Number
1 (c) AO1 = 1 mark
Award 1 mark for correct definition of branding.

 A name/symbol/design that identifies and

differentiates a product from other products
(1). (1)

Question Answer Mark

Number
1 (d) AO2 = 1 mark
Award 1 mark for a correct example of a diseconomy
of scale in the context of the business.

 Communication between Yellow’s clothing

factory and the retail shops could become
difficult in different countries (1).

Accept any other appropriate response.

(1)

Question Answer Additional guidance Mark

Number
1 (e) AO2 = 2 mark Award 1 mark for
correctly substituting
252 x .17 (1) = 42.84 numbers into formula.

252 + 42.84 = 294.84 (1) Award full marks for

correct numerical
OR answer without
working.
252 x 1.17 (1)

= 294.84 (1)
(2)

Question Answer Mark

Number
1 (f) AO1 = 3 marks

Award 1 mark for identification of an advantage of a

business having loyal customers, plus 2 further
marks for explaining this advantage for a maximum
of 3 marks.

 An advantage will be repeat custom (1) if

customers are loyal they will only shop at that
business (1) which could increase market
share/revenue (1).

Answers that list three advantages with no

explanation will get a maximum of 1 mark.

Accept any other appropriate response.

(3)
Question Indicative content Mark
Number
1 (g) AO2 = 3 marks AO3 = 3 marks

AO2
 The quality of the T-shirts will be better.
 Reduction in costs of making the T-shirts.

AO3
 Yellow’s reputation will be enhanced leading to
higher sales.
 There will be fewer returns of T-shirts, which
could lead to increased profitability for the
manufacturer.
(6)

Level Mark Descriptor

0 No rewardable material.
Level 1 1-2  Limited application of knowledge and
understanding of business concepts and
issues to the business context (AO2).
 Attempts to deconstruct business
information and/or issues, finding limited
connections between points (AO3).
Level 2 3-4  Sound application of knowledge and
understanding of business concepts and
issues to the business context although
there may be some inconsistencies (AO2).
 Deconstructs business information and/or
issues, finding interconnected points with
chains of reasoning, although there may be
some logical inconsistencies (AO3).
Level 3 5-6  Detailed application of knowledge and
understanding of business concepts and
issues to the business context throughout
(AO2).
 Deconstructs business information and/or
issues, finding detailed interconnected
points with logical chains of reasoning
(AO3).
Question Answer Mark
Number
2 (a) AO2 = 1 mark

Award 1 mark for a valid benefit in the context of the

business.

 Yellow attract more customers who want to

design their own shirt (1).

Accept any other appropriate response.

(1)

Question Answer Mark

Number
2 (b) AO2 = 1 mark

Award 1 mark for valid way Yellow could carry out

market research in the context of the business.

 Yellow could ask questions of customers in its

shops (1).

Accept any other appropriate response.

(1)

Question Answer Mark

Number
2 (c) AO1 = 3 marks

Award 1 mark for identification of a benefit of

retaining staff, plus 2 further marks for explaining the
benefits, for a maximum of 3 marks.

 If staff stay with the business it means that

there is consistency (1). It means that
employees gain knowledge of the products
they are selling (1) and they can pass this
information on to customers (1).

Answers that list three benefits with no explanation

will get a maximum of 1 mark.

Accept any other appropriate response.

(3)
Question Answer Mark
Number
2 (d) AO1 = 3 marks

Award 1 mark for identification of an advantage of a

business using targeted advertising online, plus 2
further marks for explaining the advantage for a
maximum of 3 marks.

 A business can target a wider audience (1)

because it is worldwide and 24/7 (1) and is a
relatively cheap method of advertising to
traditional methods (1).

Answers that list three advantages with no

explanation will get a maximum of 1 mark.

Accept any other appropriate response.

(3)

Question Answer Mark

Number
2 (e) AO1 = 3 marks

Award 1 mark for identification of a reason why cash

flow forecasts are important, plus 2 further marks for
explaining the importance for a maximum of 3
marks.

 It allows the business to predict its future

inflow and outflows (1). It knows whether it
can survive or not (1) and whether it has
sufficient funds to keep trading (1).

Answers that list three reasons why a cash flow

forecast is important with no explanation will get a
maximum of 1 mark.

Accept any other appropriate response.

(3)
Question Indicative content Mark
Number
2 (f) AO2 = 3 marks AO3 = 3 marks AO4 = 3 marks

AO2
 Option 1 – Full-time staff means fewer employees
in each store.
 Option 2 – Part-time staff offer flexibility in the
hours they work in each store.

AO3
 Option 1 – Full-time staff provide consistency,
commitment and loyalty.
 Option 2 – Part-time staff have the flexibility to
meet the demand of longer shop hours or busy
periods.

AO4
 Option 1 – Costs may be increased because they
have to be paid regardless of demand in the
stores.
 Option 2 – Higher recruitment costs because
part-time staff may be less committed to Yellow. (9)
Level Mark Descriptor
0 No rewardable material.
Level 1 1-3  Limited application of knowledge and
understanding of business concepts and
issues to the business context (AO2).
 Attempts to deconstruct business
information and/or issues, finding limited
connections between points (AO3).
 Makes a judgement, providing a simple
justification based on limited evaluation of
business information and issues relevant to
the choice made (AO4).
Level 2 4-6  Sound application of knowledge and
understanding of business concepts and
issues to the business context although
there may be some inconsistencies (AO2).
 Deconstructs business information and/or
issues, finding interconnected points with
chains of reasoning, although there may be
some logical inconsistencies (AO3).
 Makes a judgement, providing a justification
based on sound evaluation of business
information and issues relevant to the
choice made (AO4).
Level 3 7-9  Detailed application of knowledge and
understanding of business concepts and
issues to the business context throughout
(AO2).
 Deconstructs business information and/or
issues, finding detailed interconnected
points with logical chains of reasoning
(AO3).
 Makes a judgement, providing a clear
justification based on a thorough evaluation
of business information and issues relevant
to the choice made (AO4).
Question Answer Mark
Number
3 (a) AO1 = 1 mark

Award 1 mark for a correct definition of multi-

national business.

 A business that is operational in more than one

country (1).

Accept any other appropriate response.

(1)

Question Answer Mark

Number
3 (b) AO2 = 2 marks

 It means that the revenue from Yellow (1) can

help out the other businesses in the group (1).

 It could increase Yellow’s brand awareness (1)

which as result more customers would be
interested in the clothing industry (1).

NB Do not accept reasons that would not be

appropriate for the context of BEXIMCO.

Accept any other appropriate response.

(2)

Question Answer Additional guidance Mark

Number
3 (c) AO2 = 2 marks Award 1 mark for
correctly substituting
10.68/147.5 x 100 (1) numbers into formula.

= 7.24 (1) Award full marks for if

correct numerical
answer without
working. (2)
Question Indicative content Mark
Number
3 (d) AO2 = 3 marks AO3 = 3 marks

AO2
 All demographics need to buy clothing.
 Covering a range of clothing spreads the risk.

AO3
 By selling to all demographics , Yellow will
have a larger number of customers.
 If sales of children’s clothing is not as good it
can be compensated by sales from teenage
clothing.
(6)

Level Mark Descriptor

0 No rewardable material.
Level 1 1-2  Limited application of knowledge and
understanding of business concepts and
issues to the business context (AO2).
 Attempts to deconstruct business
information and/or issues, finding limited
connections between points (AO3).
Level 2 3-4  Sound application of knowledge and
understanding of business concepts and
issues to the business context although
there may be some inconsistencies (AO2).
 Deconstructs business information and/or
issues, finding interconnected points with
chains of reasoning, although there may be
some logical inconsistencies (AO3).
Level 3 5-6  Detailed application of knowledge and
understanding of business concepts and
issues to the business context throughout
(AO2).
 Deconstructs business information and/or
issues, finding detailed interconnected
points with logical chains of reasoning
(AO3).
Question Indicative content Mark
Number
3 (e) AO2 = 3 marks AO3 = 3 marks
AO4 = 3 marks

AO2
 Option 1 – By adding additional tasks such
as supervising newly recruited employees.
 Option 2 – Employees could rotate from
working in the store with customers or in
the back room with the stock.

AO3
 Option 1 -The employee will gain the
experience of the new tasks and feel
appreciated by the business. The member
of staff will then feel more committed to the
business.
 Option 2 - By using job rotation it distracts
from the boredom of doing one job, e.g.
unpacking items to put on shelves to
creating displays in the store. It helps the
managers if staff are able to move from one
job to another at busy times.

AO4
 Option 1 - Yellow will benefit from the
employee being able to carry out different
tasks, but there may come to a point where
they demand more pay.
 Option 2 – This could incur cost of time and
training of the employee who then might
use their new skills to seek another job. (9)
Level Mark Descriptor
0 No rewardable material.
Level 1 1-3  Limited application of knowledge and
understanding of business concepts and
issues to the business context (AO2).
 Attempts to deconstruct business
information and/or issues, finding limited
connections between points (AO3).
 Makes a judgement, providing a simple
justification based on limited evaluation of
business information and issues relevant to
the choice made (AO4).
Level 2 4-6  Sound application of knowledge and
understanding of business concepts and
issues to the business context although
there may be some inconsistencies (AO2).
 Deconstructs business information and/or
issues, finding interconnected points with
chains of reasoning, although there may be
some logical inconsistencies (AO3).
 Makes a judgement, providing a justification
based on sound evaluation of business
information and issues relevant to the
choice made (AO4).
Level 3 7-9  Detailed application of knowledge and
understanding of business concepts and
issues to the business context throughout
(AO2).
 Deconstructs business information and/or
issues, finding detailed interconnected
points with logical chains of reasoning
(AO3).
 Makes a judgement, providing a clear
justification based on a thorough evaluation
of business information and issues relevant
to the choice made (AO4).
Question Answer Additional Mark
Number guidance
4 (a) AO2 = 2 marks
Award 1 mark for
13.75 x 14 000 (1) = 192 500 correctly
192 500 – 154 700 = 37 800 (1) substituting
numbers into
OR formula.

13.75 – 11.05 (1) = 2.7 Award full marks

2.7 x 14 000 = 37 800 (1) for correct
numerical
answer without
working. (2)
Question Indicative content Mark
Number
4 (b) AO2 = 3 marks AO3 = 3 marks

AO2
 Customers may make negative comments
about the clothes purchased.
 Customers may not want to buy clothes
because of the reviews posted.

AO3
 The impact of negative comments on clothes
purchased might be a decrease in the sale of
that type of clothing leading to excess stock.
 Yellow may lose customers and sales due to
the comments made on social media, without
customers seeing the clothes.
(6)

Level Mark Descriptor

0 No rewardable material.
Level 1 1-2  Limited application of knowledge and
understanding of business concepts and
issues to the business context (AO2).
 Attempts to deconstruct business
information and/or issues, finding limited
connections between points (AO3).
Level 2 3-4  Sound application of knowledge and
understanding of business concepts and
issues to the business context although
there may be some inconsistencies (AO2).
 Deconstructs business information and/or
issues, finding interconnected points with
chains of reasoning, although there may be
some logical inconsistencies (AO3).
Level 3 5-6  Detailed application of knowledge and
understanding of business concepts and
issues to the business context throughout
(AO2).
 Deconstructs business information and/or
issues, finding detailed interconnected
points with logical chains of reasoning
(AO3).
Question Indicative content Mark
Number
4 (c) AO1 = 3 marks AO2 = 3 marks
AO3 = 3 marks AO4 = 3 marks

AO1
 Customers buy Yellow clothing because they
offer a wide variety of clothing.
 Yellow has low manufacturing costs.

AO2
 It offers clothing for all the family with different
price ranges.
 It gains a competitive advantage because it
responds quickly to the change in the fashion
market demanded by its customers.

AO3
 Customers want clothing that is sold at a
reasonable price and the whole family can shop
at one store without going to other stores.
 By having a quick response to changes in
demand it is ahead of its competitors.

AO4
 However, not all members of the family have
the same taste and some may prefer different
styles of clothing that Yellow offer.
 Not all customers are driven by fashion changes
and many would want clothing that would last a
number of years. (12)
Level Mark Descriptor
0 No rewardable material.
Level 1 1-4
 Demonstrates elements of knowledge and
understanding of business concepts and
issues, with limited business terminology
used (AO1).
 Limited application of knowledge and
understanding of business concepts and
issues to the business context (AO2).
 Attempts to deconstruct business
information and/or issues, finding limited
connections between points (AO3).
 Makes a judgement, providing a simple
justification based on limited evaluation of
business information and issues relevant to
the choice made (AO4).
Level 2 5-8  Demonstrates mostly accurate knowledge
and understanding of business concepts
and issues including appropriate use of
business terminology in places (AO1).
 Sound application of knowledge and
understanding of business concepts and
issues to the business context although
there may be some inconsistencies (AO2).
 Deconstructs business information and/or
issues, finding interconnected points with
chains of reasoning, although there may be
some logical inconsistencies (AO3).
 Makes a judgement, providing a justification
based on sound evaluation of business
information and issues relevant to the
choice made (AO4).
Level 3 9 - 12  Demonstrates accurate knowledge and
understanding of business concepts and
issues throughout, including appropriate
use of business terminology (AO1).
 Detailed application of knowledge and
understanding of business concepts and
issues to the business context throughout
(AO2).
 Deconstructs business information and/or
issues, finding detailed interconnected
points with logical chains of reasoning
(AO3).
 Makes a judgement, providing a clear
justification based on a thorough evaluation
of business information and issues relevant
to the choice made (AO4).