- Mark Scheme /

Question Answer Marks AO Element Notes Guidance

1 Identify two benefits to a business 2 Only award the first two

of specialisation. responses given.
Award 1 mark per benefit (max
2).
Points might include:
• Increases output
• Quicker production / increases
productivity / higher
efficiency
• Lower unit cost / economies
of scale
• Workers become expert/more
skilled / employees focus on
what they are good at
• Improves accuracy / better
quality / fewer mistakes /
reduces waste
• Helps improve
competitiveness
Other appropriate responses should
be credited.
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

2 Outline how providing a good 4 Note: To use words from

quality service could help the stem as application,
Samuel’s business increase added the reference must be
value. appropriate (i.e. make
sense) in relation to the
Award 1 mark for identification of
point being made.
each relevant point (max 2).
The following words are
Award 1 mark for each relevant
likely to be appropriate
reference made to this business
for this question:
(max 2).
• Plumbing or related
Points might include:
words such as bathrooms
• Quality service can mean • Used all his savings /
customers are willing to pay higher $500 • New business •
price [k] for a good plumber [app] Sole trader • Pricing
which increases the gap between method • Economic
price and the cost of inputs [k] growth
which can help him choose an
Other appropriate
appropriate pricing method [app] •
examples in context can
Good quality can help boost
still be credited.
reputation / brand image [k] which
is important as it is a new business
[app] so customers may be willing
to pay a higher price for his services
[k] and allow Samuel to take
advantage of economic growth
[app]
Other appropriate responses should
also be credited.
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Question Answer Marks AO Element Notes Guidance

3 Define ‘delegation’. 2 For two marks needs the

idea of who is
Award 2 marks for a full definition. giving/receiving
Award 1 mark for a partial authority/responsibility
definition. and for what.
Giving a subordinate the authority Do not award answers
to perform particular tasks [2] which identify reasons
OR for using delegation e.g.
motivates, create time for
When a manager gives authority to managers to do other jobs
another employee to complete a [0].
task, although the manager retains
the ultimate responsibility for the
completion of the task [2]
OR
Passing responsibility to perform
tasks to employees (lower down the
organisation) [2]
Partial definition e.g. manager gives
task to employee [1]
OR subordinate given task to do
[1]
OR giving authority to a
subordinate/employee [1]
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

4 Define ‘job description’. 2

Award 2 marks for a full definition.
Award 1 marks for a partial
definition.
Outlines the responsibilities and
duties to be carried out by someone
employed to do a specific job [2]

OR
A list of the key points about a job,
job title, key duties, responsibilities,
and accountabilities [2]
OR
A description of the tasks, role, and
responsibilities of a particular
position [2]
OR
What the job entails/explains the
job with a list of suitable content
[2]
Partial definition, e.g. What they
must do in a job/list of content
[1]
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

5 Identify two levels from Maslow’s 2 Only award the first two
hierarchy of needs. responses given.
Award 1 mark per level (max 2). Do not award examples
such as job security.
Two from:
Do not award answers
• Physiological/physical such as psychological or
• Safety/security basic needs as too
vague.
• Social/(love and) belonging
• Esteem
• Self-actualisation

6 Identify two leadership styles. 2 Only award the first two

responses.
Award 1 mark per leadership style
(max 2). Do not award:
Points might include: Descriptions of styles.
• Autocratic
• Democratic
• Laissez-faire
Other appropriate responses should
also be credited.
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

7 Outline one advantage and one 4 To use words from the

disadvantage to Gloria of using stem as application,the
telephone calls as a method of reference must be
communication with her appropriate (i.e. make
employees. sense) in relation to the
point being made.
Award 1 mark for identification of
each relevant The following words are
advantage/disadvantage(max 2). likely to be appropriate
on this question:
Award 1 mark for each relevant
reference to this business (max • (House) cleaning
2).
• 4 employees
Points might include:
• Sole trader
Advantages:
• Can help share her
• Instant/quick to contact [k] her workload
4 employees [app]
Other appropriate
• Opportunity to get immediate examples can be
feedback [k] about cleaning credited.
jobs [app]
• Can talk to employees who are
anywhere/elsewhere [k]
• Can leave a message/voice
note [k]
Disadvantages:
• Technical problems e.g. no
internet/signal [k] so will not
help reduce her workload
[app]
• No hard copy/nothing to refer
to [k]
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

• Receiver may not answer the

phone/might be busy when
call [k]
• Not face to face/no body
language [k]
• May only be able to speak to
one person at a time [k]
• Cannot show data/chart over
a phone [k]
• Cost [k]
Other appropriate responses should
also be credited.
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

8 Identify two reasons why a 2 Only award the first two

business might offer training to responses given.
its employees.
Award 1 mark per reason (max
2).
Points might include:
• To introduce a new
process/new equipment
• Improve
efficiency/productivity
• Increase output
• Reduce mistakes/fewer
errors/better quality goods or
services
• Improve employee skills
• Increase knowledge
• Improve motivation
• Help reduce labour turnover
• Decrease the chance of
accidents
• Familiarise new employees
with business/other
employees
Other appropriate responses should
also be credited.
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

9 Define ‘span of control’. 2

Award 2 marks for a full definition.
Award 1 mark for a partial
definition.
Number of subordinates reporting
to each supervisor / manager [2]
OR
Number of subordinates /
employees working (directly) under
a manager [2]
Partial definition e.g. whom you are
responsible for [1] OR who reports
to one manager [1]
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

10 Identify two methods of written 2 Only award the first two

communication. responses given.
Award 1 mark for each relevant
method (max 2 marks).
Points might include:
• Letter
• Notice/notice board
• Text
• Memo
• Email
• Newsletter
• Website
• Social
media/Facebook/WhatsApp
• Billboards/posters
• Leaflets/flyer
• (Local/national)
newspapers
• (Specialist/general)
magazines
Other appropriate answers should
also be credited.
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

11 Do you think job enrichment is a 6

better way for a business to
motivate its employees than profit
sharing? Justify your answer.
Award up to 2 marks for
identification of relevant points.
Award up to 2 marks for relevant
development of points.
Award 2 marks for justified
decision as to whether job
enrichment is a better way for a
business to motivate its employees
than profit sharing.
Points might include:
Job enrichment:
• Business able to make most /
full use of employees skills [k]
which can help increase labour
flexibility [an]
• Training may be needed [k]
which can increase expenses
[an]
• Workers gain more job
satisfaction/ feel
recognised/valued [k]
• Not all workers are able / want
to do more complex work [k]
leading to mistakes/ waste [an]
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

• Not easy to add extra tasks to

some jobs [k]
• Time consuming to redesign
tasks [k]
• May create conflict between
employees (as may not be
possible to offer opportunities
to all) [k]
Profit sharing:
• Money is a major motivator
for many employees [k]
• Can help build team spirit /
sense of belonging / common
goal [k]
• Not everyone is motivated by
money [k] If business makes
low/ no profit, then there is
little/ nothing to share [k]
which could decrease
motivation [an]
Other appropriate responses should
also be credited
Justification might include:
Job enrichment can help the
business make the most use of
employees skills [k] increasing
productivity [an]. A business
making no profit, has nothing to
share [k] which could decrease
rather than increase motivation [an].
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

I think job enrichment is better as

making the job more interesting is
more likely to motivate employees
every day. [eval]. Profit-sharing is
at the end of the year, and therefore
is likely to have less impact on
daily effort. [eval]
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

12 Explain two stages of the 6 This is a general question

recruitment and selection process so there are no marks for
that businesses use. Which stage application.
do you think is more important?
The focus of the answer
Justify your answer.
should focus on the
Award up to 2 marks for business and not
identification of relevant points. employees.
Award up to 2 marks for relevant
development of points.
Award 2 marks for a justified
decision as to which stage of the
recruitment and selection process
is more important.
Points might include:
• Job analysis [k] helps work
out whether need to recruit
someone / tasks and duties can
be given to someone else
[an]
• Job description [k] provides a
clear idea of what job involves
[an] so can help avoid
applications from people who
cannot do the job [an]
• Person / job specification [k]
identifies qualifications / skills
/ experience needed [an]
• Advertising the vacancy [k]
which raises awareness of the
job [an] increasing the number
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

of potential applicants [an]

• Shortlisting / screening [k]
allows business to reduce the
number of candidates who will
be interviewed [an]
• Interview [k] allows you to
find out more about the
candidate (in terms of abilities
/ skills) [an] but this may be
time consuming [an]
Other appropriate responses should
also be credited.
Justification might include:
A job description [k] is helpful as
it sets out the roles and
responsibilities of job [an]. Another
stage is advertising the vacancy [k]
which helps make people aware
about the jobs [an]. I think the job
description is more important
because without knowing what you
want the person to do, the business
is unlikely to know if it has found
a suitable candidate [eval]. This
means that the money spent on
advertising may not be cost
effective. [eval]
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

13 Identify one benefit and one 2 Only award the first

limitation for a business of response given for
developing new products. benefit/limitation.
Award 1 mark per benefit/limitation
(max 1 for each).
Points might include:
Benefits:
• Increase sales / revenue /
customers
• Spread risk / diversification
• Enter new markets
• Help expand into existing
markets / increase market
share
• Improve competitive
advantage / Unique selling
point (USP)
• Improve brand image / better
reputation
• Maintain customer loyalty
Limitations:
• Cost of market research
• Cost of research and
development (R&D)
• Cost of producing / testing
trial products
• Cost of new machinery
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

• May need to recruit / cost of

additional employees /
specialists
• Cost of launching / promoting
/ advertising new product in
market
Other appropriate responses should
be credited.

14 Identify two reasons why some 2 Only award the first two
markets can become more answers given.
competitive.
Do not award:
Award 1 mark per reason (max 2).
Factors affecting
demand/spending
Points might include: patterns e.g. changes in
population, spending on
• Globalisation/free trade
advertising, lower
Internet/ecommerce/social
prices/actions of
media/developments in
competitors
technology
• Improvements in
transport/infrastructure
• New legal controls/provide
grants/removal of
tariffs/quotas
• Increase in competitors
Other appropriate responses should
also be credited.
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

15 Identify two factors that might 2 Only award the first two
affect the accuracy of market answers given.
research.
Award 1 mark per factor (max 2).

Points might include:

• Sample size
• Sample chosen/who is asked

• Interviewer experience
/interviewer bias
• Wording of the questions
• Who carried out research
• Age of information /when data
gathered/information might be
out of date
• Peoples actions do not always
match what they say
• Anonymity
• Bots or use of AI
Other appropriate responses should
also be credited.
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

16 Define ‘mass market’. 2 Do not award:

Award 2 marks for a full definition. Alternative words for
Award 1 mark for a partial mass e.g. big/large
definition. market.
Where there is a very large number Lots of sellers, lots of
of sales of a product [2] competitors, lots of
products as this simply
OR describes a market.
Selling the same product to the
whole market [2]
OR
A large market containing lots of
customers buying similar products
[2]
Partial definition e.g. lots of
customers / lots of sales / lots of
buyers [1]
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

17 Do you think it is always better 6 This is a general question

for a start-up business to use so there are no marks for
primary market research, rather application.
than secondary market research,
Some points could be
when making decisions? Justify
awarded for different
your answer.
options, but do not award
Award up to 2 marks for the same point twice.
identification of relevant points.
For evaluation to be
Award up to 2 marks for relevant awarded justification will
development of points. usually follow on from
relevant analysis of
Award 2 marks for justified
points.
decision as to whether it is always
better for a start-up business to use Note: Do not accept
primary market research rather than mirror arguments such as
secondary market research when primary research is up to
making decisions. date and secondary
research maybe
Points might include:
outdated.
Primary market research:
• Relevant / up to date data
gathered [k] so should help
you find out what you want to
know [an]
• High cost / time to collect
information [k] which a new
business might not be able to
afford [an]
• Only available to own
business [k]
• May find it difficult to find
people that represent target
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

market / population [k]

Secondary market research:
• May not be relevant / outdated
[k] which can lead to wrong
decisions [an]
• Readily available [k]
• Cheap [k]
• Can collect wide range of
information [k]
Justification might include:
Primary research collects business
specific data [k] helping to find out
what you want to know [an].
Secondary research is cheaper than
primary to collect [k] which could
help reduce costs [an]. As this is a
start-up business finance may be
limited therefore secondary
research may be better for them.
[eval]. However the information
must be from a reliable source.
[eval]

[Total: 50]