CAMBRIDGE INTERNATIONAL SCHOOL, DUBAI

MARK SCHEME MOCK/ TERM 3 EXAM MAY/JUNE 2023

SUBJECT: Business- opt 5Year 10

PAPER/S: 1 & 2

MAXIMUM MARKS:- 80

This mark scheme is published as an aid to teachers and candidates, to indicate the requirements
of the examination. It shows the basis on which teachers were instructed to award marks. It does
not indicate the details of the discussions that took place at the standardisation meeting before
marking began, which would have considered the acceptability of alternative answers.
Cambridge International School, will not enter into discussions about these mark schemes.

GENERIC MARKING PRINCIPLE 1: Marks must be awarded in line with:

• the specific content of the mark scheme or the generic level descriptors for the question
• the specific skills defined in the mark scheme or in the generic level descriptors for the
question
• the standard of response required by a candidate as exemplified by the
standardisation scripts.
GENERIC MARKING PRINCIPLE 2: Marks awarded are always whole marks (not half
marks, or other fractions)

GENERIC MARKING PRINCIPLE 3: Marks must be awarded positively:

• marks are awarded for correct/valid answers, as defined in the mark scheme.
However, credit is given for valid answers which go beyond the scope of the syllabus
and mark scheme, referring to your Faculty Leader as appropriate
• marks are awarded when candidates clearly demonstrate what they know and can do
• marks are not deducted for errors
• marks are not deducted for omissions
• answers should only be judged on the quality of spelling, punctuation and grammar when
these features are specifically assessed by the question as indicated by the mark
scheme. The meaning, however, should be unambiguous.
GENERIC MARKING PRINCIPLE 4: Rules must be applied consistently, e.g. in situations
where candidates have not followed instructions or in the application of generic level descriptors.

GENERIC MARKING PRINCIPLE 5: Marks should be awarded using the full range of marks
defined in the mark scheme for the question (however; the use of the full mark range may
be limited according to the quality of the candidate responses seen).

GENERIC MARKING PRINCIPLE 6: Marks awarded are based solely on the requirements
as defined in the mark scheme. Marks should not be awarded with grade thresholds or grade
descriptors in mind.

1
Question Answer Marks Notes

1(a) Identify two objectives for a business organisation in the public sector. 2 Only award the first two responses
given.
Award 1 mark per objective.

Points might include:

 Financial or examples e.g. meet targets set by government, improve
efficiency/reduce costs
 Make product/service affordable to all
 Provide a service to everyone
 Protect or create jobs in certain areas (social objectives)

Other appropriate responses should also be credited.

1(b) Define ‘chain of command’. 2

Award 2 marks for a full definition. Award 1 mark for a partial definition.

The structure in an organisation which allows instructions to be passed down

from senior management to lower levels of management [2]
OR
The route through which authority is passed down through an organisation [2]
OR
Shows how communication and tasks are passed down the business from the top
to the bottom [2]

Partial definition e.g. shows who gives orders [1]

Question Answer Marks Notes

1(c) Outline two ways MBH can use ideas from Herzberg’s theory to motivate its 4 To use words from the stem as
employees. application, the reference must be
appropriate (i.e. make sense) in
Award 1 mark for each relevant point. relation to the point being made.

Award 1 mark for each relevant reference to this business. The following words are likely to be
appropriate for this question:
Points might include:  440 / doctors
 Could give employees more responsibility [k] in the hospital [app]  (5) Hospitals / or related words
 Offer more interesting work [k] as many are skilled employees [app]  5600 employees
 Offer more praise for good work [k]  Public sector
 Give chances for promotion [k] as there is a tall organisational structure [app]  Communication barriers
 Phone/email
Other appropriate responses should also be credited.  Long chain of command
 Tall organisational structure
 Skilled employees

Other appropriate examples in context

can still be credited.

Do not award examples of hygiene

factors on their own e.g., Pay, improve
working conditions as these are not
motivators
Question Answer Marks Notes

1(d) Explain how MBH might reduce or remove each of the following 6 To use words from the stem as
communication barriers: application, the reference must be
appropriate (i.e. make sense) in
Award 1 mark for identification of each relevant way (max 2). relation to the point being made.

Award 1 mark for each relevant reference to this business (max 2). The following words are likely to be
appropriate for this question:
Award 1 mark for each relevant explanation (max 2).  440 / doctors
 (5) Hospitals / or related words
Points might include:  5600 employees
Messages lost:  Public sector
 Ask for feedback [k] to ensure that the message is received [an] by all 5  Phone/email
hospitals [app]  Long chain of command
 Make sure the medium of communication is suitable/works [k]  Tall organisational structure
 Delayering/ flattening the structure [k] because it is a long chain of command  Externally recruited
[app]
Other appropriate examples in context
Use of jargon: can still be credited.
 Use simple language [k] on the phone/email [app] so easy for everyone /
receiver to understand [an]
 Make sure language is appropriate to the receiver [k] to make sure there is no
misunderstanding [an]
 Providing opportunities for the receiver to ask questions [k]

Other appropriate responses should also be credited.

Question Answer Marks Notes

1(e) Do you think an organisation should always use external recruitment when 6 This is a general question so there are
recruiting skilled employees? Justify your answer. no marks for application.

Award up to 2 marks for identification of relevant points For evaluation to be awarded

justification will usually follow on from
Award up to 2 marks for relevant development of points. relevant analysis of points.

Award 2 marks for a justified decision as to whether an organisation should Advantages of external recruitment
always use external recruitment when recruiting skilled employees. can be disadvantages of internal but
do not award the same point twice as
Points might include: mirror answers are not accepted.

External recruitment:
 Bring in new skills / ideas [k] which could help improve productivity /
effectiveness / efficiency of business [an]
 Can bring in valuable knowledge and experience of competition [k] gaining a
competitive edge [an]
 Wider choice of applicants [k] increases possibility of finding best person for
job [an]
 No knowledge of how business works / current operations [k] so might need
induction training [an]
 Avoids risk of upsetting employees when someone internal is promoted [k]
 Higher recruitment costs [k]
 More time spent / takes longer to fill vacancy [k]
 Required if no suitable candidates in the business [k]

Internal recruitment :
 Can help motivate other employees [k] which could lead to fewer people
leaving / reduce absenteeism [an]
 Internal promotion can create another vacancy that then needs to be filled [k]

Other appropriate responses should also be credited.

Question Answer Marks Notes

1(e) Justification might include:

External recruitment can bring in new skills and ideas [k] helping improve
productivity [an]. Whereas using internal recruitment can help motivate other
employees [k] which could lead to fewer people leaving [an]. Overall, it depends
on the skills within the business because if there are no suitable workers external
recruitment would be the only choice. [eval] [eval]
Question Answer Marks Notes

2(a) Define ‘delegation’. 2

Award 2 marks for a full definition. Award 1 mark for a partial definition.

Giving a subordinate the authority to perform particular tasks [2]

OR
When a manager gives authority to another employee to complete a
task (although the manager retains the ultimate responsibility for the
completion of the task) [2]

Partial definition e.g. manager gives task to employee [1]

OR subordinate given task to do [1]
Question Answer Marks Notes

2(b) Identify two motivational theories. 2 Only award the first two responses given.

Award 1 mark per theory (max 2).

Points might include:

• Taylor's (scientific theory)
• Maslow's (Hierarchy of needs)
• Herzberg's (two-factor theory)

Other appropriate responses should also be credited.

2 (c) Outline two benefits to WTB of having part-time employees. 4 To use words from the stem as application the
reference must be appropriate (i.e. make sense)
Award 1 mark for each relevant benefit (max 2). in relation to the point being made.
Award 1 mark for each relevant reference to this business (max 2).
The following words are likely to be appropriate
Points might include: for this question:
• Reduces labour costs / when not working no need to pay [k] to make • Factory
the (breakfast) cereal [app] • 600 (production workers/employees)
• More flexible in hours of work [k] in the factory [app] • (Breakfast) cereal
• Easier to ask employees just to work at busy times [k] • Private limited company
• Easier to extend operating hours by working evenings/weekends [k] • Public limited company
• Provides a wider range of skills/experiences of the workforce [k] of • Delegation
600 employees [app] • Motivational theories / improve motivation
• Helps keep experienced employees [k] which may be important as • Planning to expand
business is planning to expand [app] • Training
• Can attract well qualified employees who need to have flexible hours
[k] Other appropriate examples in context can still
be credited.
Other appropriate responses should also be credited.
Question Answer Marks Notes

2(d) Explain two reasons why training might be important to WTB. 6 To use words from the stem as application the
reference must be appropriate (i.e. make sense)
Award 1 mark for identification of each relevant reason (max 2). in relation to the point being made.
Award 1 mark for each relevant reference to this business (max 2).
Award 1 mark for each relevant explanation (max 2). The following words are likely to be appropriate
for this question:
Points might include: • Factory
• Improve efficiency / increased output / faster production [k] which • 600 (production workers/employees)
could help lower (average) cost [an] in the factory [app] • (Breakfast) cereal
• More skilled / flexible employees / workers know what to do [k] so • Private limited company
able to cover absences of others [an] who work part-time [app] • Public limited company
• Fewer mistakes / better quality [k] from its 600 employees [app] • Delegation
which could lower costs of rework [an] • Motivational theories / improve motivation
• Increase motivation [k] which can help reduce labour turnover / • Part-time (employees)
encourage employee loyalty/retention [an] • Planning to expand
• Fewer customer complaints [k] about its cereal [app] increasing
customer loyalty [an] Other appropriate examples in context can still
• Less supervision needed [k] so able to make more use of delegation be credited.
[app] so managers have time to focus on other activities [an]
• Fewer accidents / ensure safe working conditions [k]
• Helps introduce a new process [k]

Other appropriate responses should also be credited.

Question Answer Marks Notes

2(e) Do you think a public limited company is a better form of business 6 This is a general question so there are no marks
organisation for a growing business than a private limited for application.
company? Justify your answer.
Some points could be awarded as either an
Award up to 2 marks for identification of relevant points. advantage/disadvantage of each option, but do
Award up to 2 marks for relevant development of points. not award the same point twice as this is
Award up to 2 marks for a justified decision as to whether a public repetition.
limited company is a better form of business organisation for a growing
business than a private limited company. Do not award the following points if candidate
identifies comparisons to private limited
Points might include: companies as they apply to both forms of
Public limited company: organisation:
• Access to very large amounts of capital [k] which does not need to • Shareholder may expect dividends to be
be repaid [an] paid
• Shares available on the stock exchange / can sell shares to public • Divorce of ownership and control
[k] • Have limited liability
• Cannot control who buys the shares / no restriction on who can buy • Have shareholders
shares [k] which increases the risk of a takeover [an] • Incorporated/separate legal identity
• More legal requirements / controls to follow / must hold an annual • Must issue financial data / accounts
general meeting [k] which increases costs / time-consuming [an] available to public
• Selling shares to the public is expensive [k]

Private limited company:

• Can only sell shares to friends/family [k] which could limit amount of
finance able to raise [an]
• Able to control who buys the shares [k] which can help reduce risk of
takeover [an]

Other appropriate responses should also be credited.

Question Answer Marks Notes

2(e) Justification might include:

A public limited company has better access to capital [k] which can help
finance expansion [an]. Whereas a private limited company can control
who buys the shares [k] which can reduce the risk of being taken over
[an]. Becoming a public limited company is better because as the
business is growing having access to more funds is likely to be very
important otherwise it could delay its plans [eval], whereas a private
limited company is restricted to a smaller group of people so may not be
able to raise sufficient funds [eval].
Question Answer Marks

1(b)
• On the gross and profit margins then Option B is better
than Option A. Both margins are higher for Option B
and therefore this has the higher profitability. This
Option also has a higher number of orders over the
year as each order is 1000 products and was
ordered 10 times last year and so this Option is the
better one to choose.

Question Answer Marks

3(a) Explain two ways Saanvi can increase the added value of ST products. 8

One mark for each way (maximum of 2).

Award a maximum of 3 additional marks for each explanation of how added

value can be increased – one of which must be applied to this context.

Relevant answers might include:

Increase price (1) – explanation of why/how prices can be increased (1)
such as:
• improve quality of the T-shirts
• improve reputation for high quality logos on the products
• establish brand image
• improve product features such as excellent customer service/USP

Reduce input/raw material costs (1) explanation of how these can be

reduced (1) such as:
• buy cheaper raw materials/find cheaper suppliers of T-shirts
• lower the quality of inputs such as cheaper fabric
• reduce the amount of inputs needed, for example redesign the T-shirts
so they do not use as much fabric

For example: Reduce raw material costs (1) such as buy cheaper
fabric/material (app). ST could change to a cheaper supplier of raw
materials (1). This will increase the gap between price and input costs and
therefore increase added value (1).

Application could include: t-shirts; customers’ own designs; no other

company offers guarantee of 100% satisfaction; high priced products aimed
at niche markets; digital sewing machines; logo name or picture provided by
customer.

Note: The two ways can both come from either increased price or reduce
input costs or one from each.
Question Answer Marks

3 (b) To expand the business in the future ST need to decide whether to 12

change from niche marketing to mass marketing. Consider the
advantages of both methods. Which method should ST use? Justify
your answer.

Level Description Marks

Sound application of knowledge and understanding of

relevant business concepts using appropriate
terminology.

Detailed discussion of niche and mass marketing.

3 9–12
Well-justified recommendation.

Candidates discussing both types of marketing in detail,

in context and with well-justified recommendation
including why the alternative type was rejected should
be rewarded with the top marks in the band.

Sound application of knowledge and understanding of

relevant business concepts using appropriate
terminology.

Detailed discussion of at least one type of marketing.

2 5–8
Judgement with some justification/some evaluation of
choices made.

Candidates discussing both types of marketing in detail

and applying them to the case should be rewarded with
the top marks in the band.

Limited application of knowledge and understanding of

relevant business concepts.

Limited ability to discuss niche and mass marketing

with little/no explanation.
1 1–4
Simple judgement with limited justification/limited
evaluation of choices made.

Candidates outlining niche and mass marketing in

context should be rewarded with the top marks in the
band.

0 No creditable response. 0
Question Answer Marks

3 (b) Relevant points might include:

• ST T-shirts are a better match to customer
needs whereas competitors’ products may be
aimed at mass markets
• Appeals to a specific type of customer
wanting their own designs/brand loyalty
Niche marketing
• May be able to charge a higher price
• Higher profit margin
• Build market expertise in their specialist field
• Marketing well targeted and more cost
effective

• Mass marketing usually has a large number

of potential customers
• Targets a wide market – greater opportunities
for increased sales
Mass marketing • Standardised T-shirts can be mass
produced
• Lower unit costs for standardised product
• Prices may be lower as unit costs lower –
increased demand – higher profit

• Stay with niche marketing as ST already has

a good reputation for high-quality
products and has many loyal customers. If
ST went into mass marketing, there are many
competitors and it might be more difficult to
expand sales. New products and operations
would also be required to expand into a mass
market, and this may be expensive and
Recommendation
difficult to finance.
• Mass marketing could also be justified
because it will be a larger market with more
opportunities for sales of standardised T-
shirts and higher revenue. This may be high
enough to cover the higher capital costs of
setting up production of standardised T-
shirts.
Question Answer Marks

4 (a) Explain two benefits to ST of having well-motivated employees. 8

One mark for each benefit (maximum of 2).

Award a maximum of 3 additional marks for each benefit of having well-

motivated employees – one of which must be applied to this context.

Relevant answers might include:

• Increases labour productivity / higher output per worker – increases
number of products produced – possibly increases revenue
• May reduce unit costs
• Reduced / low labour absenteeism
• Reduced labour turnover – reduces recruitment costs
• Improved reputation so easier to recruit workers
• More willing to accept changes / new methods of working
• Improved quality of products if more pride in their work – help reduce
waste / better or maintained reputation – lower costs / increases sales

For example: May reduce labour absenteeism (1) as employees will be

happy in their work and will not take time off unless absolutely necessary (1)
therefore, employees will produce more T-shirts and ST’s output will
increase (app). This should help ensure that ST can satisfy demand and
increase sales (1).

Application could include: t-shirts; customers’ own designs; no other

company offers guarantee of 100% satisfaction; high priced products aimed
at niche markets; digital sewing machines; produced using batch production;
plans for expansion.
Question Answer Marks

4 (b) ST need to recruit a new Operations Manager. Consider the 12

advantages and disadvantages of the three applicants in Appendix 3.
Which of the applicants should ST employ? Justify your answer.

Level Description Marks

Sound application of knowledge and understanding of

relevant business concepts using appropriate
terminology.

Detailed discussion of two or more applicants

3 9–12
Well-justified recommendation.

Candidates discussing all three applicants in detail, in

context and with well-justified recommendation
including why the alternative applicants were rejected
should be rewarded with the top marks in the band.

Sound application of knowledge and understanding of

relevant business concepts using appropriate
terminology.

Detailed discussion of at least one applicant.

2 5–8
Judgement with some justification/some evaluation of
choices made.

Candidates discussing two or more applicants in detail

and applying it to the case should be rewarded with the
top marks in the band.

Limited application of knowledge and understanding of

relevant business concepts.

Limited ability to discuss applicants with little/no

explanation.
1 1–4
Simple judgement with limited justification/limited
evaluation of choices made.

Candidates outlining three applicants in context should

be rewarded with the top marks in the band.

0 No creditable response. 0
Question Answer Marks

4 (b) Relevant points might include:

Advantages Disadvantages

Aarav • Well qualified in • Lacks experience as

management as has worked for only 1
a degree which year and not as an
should make him Operations Manager
more equipped to only the assistant
manage the
department
• Has the skills to
manage people in
the Operations
department

Vivaan • Skilled at • May be set in his

designing T-shirts ways as only
and can use the worked for one
computer programs business for 20
to do this year – may not
• Is very experienced adapt easily to the
as he has worked culture of a different
for 20 years for one business
clothing • Lacks experience of
manufacturer working for several
• Loyal employee as textile businesses
he has worked for which may mean a
the same business lack of new ideas
for 20 years
Question Answer Marks

4 (b)
Sai • He has a wide range • Does not have a
of experience as he degree so may lack
has worked for knowledge of how to
three different run a department
clothing • Lacks experience of
businesses – management of a
suggests he is a department as he
talented employee has only been a
• He is able to repair Supervisor and an
digital sewing Assistant Manager
machines – so can
save ST the cost of
repair – but he
should be focusing
on managing the
Operations
department and not
repairing machinery

Recommendation • Vivaan should be chosen as he has the most

experience and this may help to increase output
and improve efficiency for ST. Aarav lacks
experience even though he is well qualified in
management and Sai has not been an
Operations Manager only an Assistant so
also lacks the relevant experience when
compared to Vivaan.

• Aarav should be chosen as he is well qualified

and should be able to communicate well with
employees which is required due to the
previous Operations Manager not motivating
employees. Motivation and productivity need to
be increased and Aarav seems to be more of a
people person, whereas the other two applicants
are skilled in using and repairing machines
which is not required for the Operations
Manager who should be focusing on running the
factory.

• Sai should be chosen as he is very experienced

having worked in 3 different clothing
factories and should be able to easily cope with
gaining promotion to the Operations Manager
having been an Assistant Manager for 2
years. This is better experience than the other
two applicants as Aarav only has one years’
experience and not as an Operations Manager
only an Assistant and Vivaan has only worked
for one business so may lack new ideas from
other businesses.