EoT3 Practice S1 MS

IGCSE Business Studies
Y10 - EoT3 Assessment

S1 Practice_MS
Question Answer Marks Guidance
1(a) What is meant by a ‘stakeholder group’? 2 Do not award examples as this does not explain the term.
Clear understanding [2] Any individual or group which has a Do not award answers that define individual stakeholders e.g.
(direct) interest in a business because they are affected by its people interested in business and who want to invest in it (as this
activities OR decisions defines a shareholder).
Some understanding [1] e.g. An individual or group which has
an interest in a business OR Someone affected by what a
business does
OR Anybody inside or outside the business who cares about its

operations
1(b) What is meant by ‘private sector’? 2 Do not award ‘privately owned’ as does not explain term OR
‘owned by the people’ as it is too vague.
Clear understanding [2]: e.g. when business activities are
owned by individuals OR groups of individuals
Note: for two marks, must have idea of ownership and by whom.
Some knowledge [1]: not government controlled or run by
individuals/owned by shareholders
1
S1 Practice_MS
2 Identify two reasons why a business might fail. 2
Knowledge [2x1] award 1 mark per reason Relevant points might

include:
 Lack of demand / recession
 Poor management skills / poor planning
 Change in tastes
 Financial problems e.g. lack of cashflow
 Change in legal controls
 Action of competitor
2
S1 Practice_MS
3 Identify and explain two disadvantages to GLOSSY of 4 Application marks may be awarded for appropriate use of the
business growth. following:
 laissez faire
Knowledge (2x1) – award 1 mark for each relevant disadvantage  face care products
Application (2x1) – award 1 mark for each relevant explanation  factory in another country to head office
in context.  mass market
 high level of competition (in market)
Relevant points may include:  price elastic demand
 Larger business is difficult to control (k) as the factory  complaints (about communication)
is in another country (to head office) [app]
 Communication problems [k] especially as already
complaints (app) Only award diseconomies of scale if separate diseconomies of
scale have not been identified.
 Slower decision making [k] so less able to respond
effectively to high level of competition [app]
 Lower levels of employee motivation OR morale as
employees are remote from managers [k]
4 Explain two advantages to Aisha of operating as a sole 6 Note: To use words from the stem as application, the reference
trader. must be appropriate (i.e. make sense) in relation to the point
being made.
Award 1 mark for identification of each relevant advantage
(max 2).
3
S1 Practice_MS
The following words are likely to be appropriate for this

Award 1 mark for each relevant reference to this business (max
question:
2).
Award 1 mark for each relevant explanation (max 2).  20 years

 Healthy catering / lose weight/ health issues/
Points might include: diabetes/ hypertension/ heart disease
 Niche market
• Keeps all the profit [k] from healthy catering business [app]  Cost-plus pricing
so has an incentive to (continue to) work hard [an]  3 employees
• Has complete control / makes all the decisions / does not  High-quality (service)
need to consult with anyone [k] such as the 3 employees  Successful business
[app] so able to take decisions more quickly [an]
• Own boss [k] Other appropriate examples in context can still be credited.
• Freedom to choose her own holidays / schedule / work time
[k] so can choose time off when the business is less busy so Do not award points about start-up as business has been
does not miss out on sales [an] operating for 20 years e.g. quick/easy to set up [0], requires
• Able to keep (financial) information private / do not need little capital [0], few legal requirements [tv]
to produce annual accounts [k] so competitors cannot use
information to take away her customers / market share
[an] which can help her stay successful [app]
• Has close contact with customers / able to offer a more
personal service [k] as it’s a niche market [app] which can
help encourage customer loyalty [an]
Other appropriate responses should also be credited.
4
S1 Practice_MS
5 Do you think selling more franchises is the best way for 6

Vrooms to expand? Justify your answer. Application marks may be awarded for
appropriate use of the following:
 Car repair shop/s or related words such as mechanics,
Knowledge [1] – award 1 mark for identification of relevant issue(s) car service, garage, etc
[max 1]  15 repair shops, 10 of which are operated by
Application [1] – award 1 mark for a relevant reference made to this franchisees
business  5 of their own repair shops
Analysis [2] – award up to 2 marks for relevant development of point(s)  expansion plans for 5 repair shops
Evaluation [2] – justified decision made as to whether selling more  fast rate of growth
franchises in the best way for Vrooms to expand  brand name
Relevant points might include:  when many businesses are failing
Franchises:
• Do not need to raise as much capital to expand [k] as franchisee
will pay fee to buy the franchise [an]
• Will receive a share of each franchise’s profits [k] providing an
extra source of revenue [an]
• Faster way to expand [k] so able to maintain its fast rate of growth
[app]
• Mistakes by one franchisee may create a bad image for whole
business [k] damaging reputation [an] and reducing sales revenue
[an]
• Will be expected to offer support and advice [k] to these and
other 16 franchises [app] which can increase costs [an]
• Can share risks with franchisee [k] when many
businesses are failing [app]
• Brand / Customer awareness increases [k]
Expand themselves:
• Able to keep control [k]
• Keep all the profits made [k]
5
S1 Practice_MS
6
S1 Practice_MS
7
S1 Practice_MS

EoT3 Practice S1 MS

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IGCSE Business Studies

Y10 - EoT3 Assessment

Question Answer Marks Guidance

OR Anybody inside or outside the business who cares about its

Question Answer Marks Guidance

2 Identify two reasons why a business might fail. 2

Knowledge [2x1] award 1 mark per reason Relevant points might

Question Answer Marks Guidance

Question Answer Marks Guidance

The following words are likely to be appropriate for this

Award 1 mark for each relevant explanation (max 2).  20 years

Other appropriate responses should also be credited.

Question Answer Marks Guidance

5 Do you think selling more franchises is the best way for 6

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