IGCSE Business Studies

Guide to answering 8 and 12 mark Questions

In this guide you will find all of the information that you will need in order to get full marks on 8
and 12 mark questions!

The Basics
 You will find x 4 - 8 mark and 12 mark questions in Paper 2
 You should allow approximately 1 minute per mark.

Showing Knowledge-
 Make sure that you identify at least 2 points
 Make sure that your points are relevant to the business in
the case study
 Use key terminology correctly and consistently throughout your answer

Showing Application –
 Make sure that you refer to the information in the case study
 Underline key bits of information in the case study
 Examples to think about:
- What type of production is used?
- Who its competitors are?
- Management structure of the business and staffing
- Which methods of payment are used and are they suitable for the business
- Plus any additional information you have been given
- Using the name of the business is not enough
- Someone reading your answer should be able to tell something about the business

Showing Analysis –
 This is all about the strength of your explanations and arguments
 Explain the key points that you have identified
 Make sure you use connectives…. Therefore….., this will lead to……,as a result…. etc.
 Show balance ….. use the word however
 Make sure your arguments are linked to the specific situation of the business in the case
study and their objectives

Showing Evaluation –
 This is all about making a judgment/conclusion
 You MUST make sure that the conclusion matches with what the question asks for
 You must fully justify your choice and link to the specific situation of the business in the
case study.

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  Use the phrases ‘overall….’, ‘in conclusion……’, ‘because….’, ’as long as….’
The case study
 Spend approximately 10 mins reading the case study below
 Annotate this using:
o P - Product
o IN - Industry
o C - Customer
o C - Competitors

Diaz Dentist Clinic (DDC)

Rosa and Eduardo are well qualified dentists. They set up DDC 10 years ago in country X. Rosa and
Eduardo invested $50 000 each from their own savings when they formed the business partnership.
Since then the business has expanded and it is now one of the largest dentist clinics in the country. It
employs 8 dentists, 10 assistants, 3 receptionists and a general manager for the clinic. However, in
future they will only require 2 receptionists as they are purchasing a new computer system for the
administration of the clinic. This computer system could be paid for by DDC taking out a bank loan.

DDC is in the private sector and only has patients (customers) who pay for their treatment. It has a good
reputation for high quality treatment and patients pay high prices. Patients are given up to three months
to pay for their treatment. There are also some dentist clinics in country X which are operated by the
Government and provide free treatment for poor families.

DDC’s premises are now too small. Each treatment room is very small and the dentists complain that
there is not enough space to work properly. Rosa and Eduardo are planning to move the clinic to larger
premises.

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 Appendix 1

Main City News 1 May 2016

The Government is increasing the number of dentist clinics which will offer free treatment for poor
families. Only people on low wages will be able to use these clinics. The Government hopes this will
reduce the number of days people are not at work because of problems with their teeth.

The increase in the number of dentist clinics paid for by the Government is increasing the job vacancies
for dentists and assistants. The Government is also improving hospital care for poor families. The
Government says all of these changes are helping to reduce unemployment.

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 What to expect in 8 mark questions:
X 2 knowledge
X 2/4 application
X 2/4 analysis

8 mark question
1 (a) Identify and explain one advantage and one disadvantage to Rosa and Eduardo of forming a
business partnership.

Advantage: ................................................................................................................................

...................................................................................................................................................

Explanation: ..............................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

Disadvantage: ...........................................................................................................................

...................................................................................................................................................

Explanation: ..............................................................................................................................

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...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...............................................................................................................................................[8]

An 8 mark answer should….. Tick if your answer includes the

relevant points
Contain at least 2 relevant knowledge points
Contain at least 2-4 references to information in the case study
Contain 2-4 examples of explanations or analysis
Show analysis by using connectives
Show balance (possibly by using the word however)
Use key business terminology throughout
Mark scheme - 8 mark question
1 (a) Identify and explain one advantage and one disadvantage to Rosa and Eduardo of forming a
business partnership. [8]

Knowledge [2 × 1] award one mark for each relevant advantage/disadvantage

Analysis [2 × 1] award one mark for a relevant explanation of each advantage/disadvantage

Application [2 × 2] award two application marks for each advantage/disadvantage

Award one mark for each relevant advantage/disadvantage (maximum of two), such as:

• Increased capital • Additional partners to work in the business/help with

decisions/holidays/responsibility shared • Additional specialisms/skills of partners • More ideas.

• Unlimited liability • No continuity • Responsible for actions of other partners • Disagreements may
cause problems/arguments • Slower decision making • Profit will have to be shared.

Award a maximum of three additional marks for each explanation – 2 of which must be applied to this
context – of the advantage/disadvantage.

Indicative response:

Increased capital to put into the business [k] because Rosa and Eduardo will each invest $50 000 each
[ap]. This will reduce the need to borrow money, saving interest payments, [an] when the business
expands and moves to larger premises [ap].

Possible application marks: qualified dentists; business set-up 10 years ago in country X; $50 000 each
partner; largest dentist clinics in the country; 1 general manager for the clinic; bank loan to pay for new
computer system; reputation for high quality treatments; private patients; 3 months to pay for

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treatment; move to larger premises; offer teeth whitening; job vacancies for dentists and assistants;
information from Appendix 1 and 2.

There may be other examples in context which have not been included here.

12 mark questions
What to expect in 12 mark questions
x 3 knowledge
x 3 application
x 3 analysis
x 3 evaluation

(b) Consider an objective of each of the following three stakeholder groups of DDC. Do you think there
will be conflict between the objectives of each of these stakeholder groups? Justify your answer.

Objective of owners: .................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

Objective of patients (customers): ............................................................................................

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...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

Objective of employees: ............................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

Will there be conflict between their objectives? ........................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

.............................................................................................................................................[12]

A 12 mark answer should….. Tick if your answer includes

the relevant points
Contain at least 3 relevant knowledge points
Contain at least 3 references to information in the case study
Contain 3-6 examples of explanations or analysis
Show analysis by using connectives
Show balance (possibly by using the word however)
Use key business terminology throughout
At least 3 examples of evaluation

Mark scheme - 12 mark question

(b) Consider an objective of each of the following three stakeholder groups of DDC. Do you think there
will be conflict between the objectives of each of these stakeholder groups? Justify your answer. [12]

Relevant points might include:

• Owner – invested own savings; make profit; expand to gain economies of scale; provide a high quality
service

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• Patients – good treatment; affordable prices • Employees – high wages; secure job; good working
conditions.

Knowledge/Analysis/Evaluation – award up to ten marks using the levels-based mark scheme below.

Level 1 One mark for each L1 statement (max of three marks) e.g. Employees want their jobs to be
secure.

Level 2 One L2 explanation can gain four marks and a further mark can be awarded for each additional
L2 explanation (max six marks) e.g. Employees will want their jobs to be secure so they will keep
receiving a wage for working in the dentist clinic. If the business is successful then they are likely to keep
their jobs but if not then they will be made redundant and will receive no wage at all. (Four marks for L2
answer + one application mark for answering in the context of the dental clinic.)

Level 3 For L3 to be awarded there needs to be at least two L2 marks awarded and then a conclusion
which justifies whether conflict between the different stakeholder groups is likely to occur.

Award up to two additional marks for relevant application.

Possible application marks: qualified dentists; business set-up 10 years ago in country X; $50 000 each
partner; largest dentist clinics in the country; pay high prices; employs 8 dentists, 10 assistants, 3
receptionists, 1 general manager for the clinic; new computer system requires fewer receptionists;
reputation for high quality treatments; private patients; 3 months to pay for treatment; move to larger
premises; offer teeth whitening; increasing number of Government-owned dentist clinics; job vacancies
for dentists and assistants; information from Appendix 1 and 2.

There may be other examples in context which have not been included here.