MONTHLY TEST - OCTOBER 2022

GRADE 9 (EDEXCEL)

BUSINESS STUDIES

MARK SCHEME
 MARKING SCHEEME
GRADE 9- EDEXCEL
MONTHLY TEST- OCTOBER 2022

MCQ Answers

Questions Answers Mark

1 (a)(i) A 1 mark
2(a) (ii) D 1 mark
3.(a) (iii) D 1 mark
4. (a) (iv) C 1 mark
5.(a) (v) D 1 mark
6.(a) (vi) B 1 mark
7. (a) (vii) A 1 mark
8. (a) (viii) A 1 mark
9.(a) (ix) C 1 mark
10. (a) (x) D 1 mark

2a. Question Number Define the term Public Mark

Limited company

AO1- 1 mark (1)

Award one mark for the

correct definition of the
public limited company.

• A limited
company whose
shares are freely
sold and traded.
 2b. Question Number Define the term Social Mark
enterprise.

AO1- 1 mark (1)

Award one mark for the

correct definition of
Social enterprise.

• Business that
aims to improve
human or
environmental
well- being.

2c. Question Number State one external Mark

factor that could cause
a change in demand
for Rockport’s products
AO2- 1 mark (1)

Award one mark for the

a valid external factor
in the context of the
business.

• A change in
demand patterns
could lead to
people buying
more clothing.

Accept any other

appropriate response.
2d. Question Number. Explain one advantage Mark
for a sole trader
business converting
into a partnership
business
AO1- 3 mark (3)

Award 1 mark for

identification of a
benefit to a sole trader
business converting
into a partnership, plus
2 further marks
explaining the benefit.

• The business can

gain more
investment from
each partner (1)
increasing the
capital available
for a partnership
(1) which will
help to expand
the business. (1)

NB- Answers that list

three benefits of being
a partnership with no
explanation will get a
maximum of 1 mark.

Accept any other

appropriate response.
2e. Question Number. Explain one benefit Mark
from being a social
enterprise.
AO1- 3 mark (3)

Award 1 mark for

identification of a
benefit of being a social
enterprise,plus 2
further marks
explaining the benefit.

• Enhance brand
awareness and
reputation (1)
Social enterprises
will gain praise
for their social
goals through
different
stakeholders
groups(1) which
will help the
business to
expand the
business. (1)

NB- Answers that list

three benefits of being
a social enterprise with
no explanation will get
a maximum of 1 mark.

Accept any other

appropriate response.
2f. Question Number. Explain one reason Mark
why business
objectives change as
business evolve
AO1- 3 mark (3)

Award 1 mark for

identification of a the
reason why business
objectives change as
the business evolve ,
plus 2 further mark
explaining the benefit.

• Technological
changes(1) When
new technological
developments
occur businesses
have to change
their objectives
(1) in order to
remain
competitive in the
market. (1)

NB- Answers that list

reasons why business
objectives change as
business evolve, with
no explanation will get
a maximum of 1 mark.

Accept any other

appropriate response.
2g. Question Number. Outline one reason Mark
why Rock Port is best
described as being in
the tertiary sector.

AO2- 2 mark (2)

Award 1 mark for

identification of the
reason why Rock Port is
best described as being
in the tertiary sector.
plus 1 further mark for
linking it to the context
of the question.

Rockport sells
shoes(1). This means
that it provides a
service to customers.

NB- Do not accept any

reason that would not
be appropriate for the
context of Rockport.

Accept any other

appropriate response.
2h. Question Number. Mark
Analyse the effect of a
decrease in interest
rates on Rockport
AO2- 3 marks A03- 3 (6)
marks

AO2

• Lower interest
rates could lead
to an increase in
the demand for
Rockport’s shoe
items targeted to
men and
children.

• The cost of
borrowing comes
down so the shoe
shop could pay
less on any loan
they obtain.

A03

• Rockport may
have to introduce
additional
collection of
items, in order to
cater for the
increase in
demand, this will
increase in costs
but as sales
increase this can
cover up the cost.

• Since the interest

cost is low the, it
will have a
positive impact
 on the
profitability of the
business.

Accept any other

appropriate response.

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)
3a. Outline one possible Mark
financial objective,
other than revenue,
that Rock port might
have
AO2- 2 mark (2)

Award 1 mark for

identifying a
possible financial
objective Rockport
might have, plus 1
further mark for
outlining it in the
context of the
business.

• Alex is looking
to increase the
profits (1). He
could do this
by adding
more variety
of shoes in his
shop.

NB- Do not accept

any financial
objective that would
not be appropriate
for the context of
Rockport

Accept any other

appropriate
response.
3b. Question Number. Mark
Analyse the likely factors
that Alex might have
considered before
starting up as a sole
trader business.
(6)
AO2- 3 marks A03- 3
marks

AO2

• Control- Alex will

have the full control
in decision making
related to what
type of shoe
designs,
accessories that he
is planning to sell in
his shop.

• Availability of
finance- When
Alex started his
retailer shoe shop
initially he might
not have had a
large amount of
finance to start a
large business
 A03

• Having full control

will enable Alex to
quickly respond
market changes
and increase the
customer
satisfaction levels.

• Since obtaining a
finance is also
difficult for a new
business as banks
are reluctant to
provide, Alex might
have started the
business as a sole
trader business.

Accept any other

appropriate response.

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)
5-6 • Detailed application of knowledge and
Level 3 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)

3c. Question Number. Mark

Evaluate whether Rock
Port should consider (12)
becoming a private
limited company. You
should use the
information provided as
well as your own
knowledge of business.
A01- 3 marks A02-
3 marks

AO3- 3 marks A04-

3 marks

A01

• A private
limited company
is a suitable type
of ownership for
small and
medium-sized
businesses.

• In a private
limited company,
the shareholders
can only lose the
money they
invest.

A02

• As a one-man
business
becoming a
private limited
company means
Alex could raise
more funds from
family and friends
and expand to
different parts of
the cities.

• Rockport will
have a separate
legal identity
meaning the
shoe business
could carry on if
 anything happens
to Alex.

A03

• If Rockport
opts for a private
limited company
then Alex can
control who the
other owners will
be allowing him
to choose people
who have an
interest in
investing in shoe
retailing
business.

• Having Ltd
status means
that Alex’s
personal
possessions are
protected as are
those of his
shareholders. The
benefit of this is
that the risk for
shareholders is
reduced.

A04

• However, Alex
may not get a lot
of interest so
cannot raise large
amounts of
money and this
can slow down
his expansion
plans. He may
find it easier to
 opt for another
source of finance
such as a bank
loan rather than
change the legal
ownership of the
business, so he
does not lose any
control of the
business.

• However,
becoming a Ltd
will involve an
increase in
paperwork and
some information
will have to be
shared publicly
and this could be
of some interest
to Alex’s
competitors.

Accept any other

appropriate response.
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)