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6-8-Marks Practice Questions1
6-8-Marks Practice Questions1
INSTRUCTIONS TO CANDIDATES
• Write your name, centre number and candidate number in the boxes above. Please write clearly and in capital letters.
• Use black ink. HB pencil may be used for graphs and diagrams only.
• Answer all the questions, unless your teacher tells you otherwise.
• Read each question carefully. Make sure you know what you have to do before starting your answer.
• Where space is provided below the question, please write your answer there.
• You may use additional paper, or a specific Answer sheet if one is provided, but you must clearly show your candidate
number, centre number and question number(s).
Analyse two benefits of starting your business as a partnership rather than as a sole trader.
Benefit 1
Benefit 2
[6]
Your mobile phone cases have been very successful and you are now planning to introduce a new range of
computer tablet cases.
The laws surrounding product safety standards of mobile phone and computer tablet cases are set to change
over the coming year.
Analyse two ways development of the new computer tablet cases may be affected by changes to laws such as
product safety standards.
[6]
Your mobile phone cases have been very successful and you are now planning to introduce a new range of
computer tablet cases.
To support the launch of your range of computer tablet cases you are considering either running a social media
campaign or advertising on local radio.
Recommend which method you think should be used. Justify your answer. [8]
Benefit 1:
Benefit 2:
[6]
You want Proctor’s Supplies to be more competitive with other local stores. You are considering either delivering
leaflets or placing a local newspaper advert to achieve this.
Recommend which method you think should be used. Justify your answer.
[8]
Several large businesses have agreed to produce and supply grocery products for you to sell in Proctor’s
Supplies.
Experts predict that the economy may go into recession over the coming six months.
Analyse two ways in which the proposed economic recession might impact on product development for your
suppliers.
Impact 1:
Impact 2:
[6]
Benefit 1
Benefit 2
Benefit 1
Benefit 2
[6]
You need to select a pricing strategy for all of the ice creams on your menu and are thinking about adopting
either price skimming or price penetration.
[8]
Your market research suggests that you will sell 150 medium-sized ice creams on an average day in May.
Fixed Costs £300 per day
Selling price £3.40 per ice cream
Variable costs £0.80 per ice cream
[3]
(ii) the profit made during a week in May, if you open seven days per week.
Recommend which of these two sales promotion techniques should be used. Justify your answer.
[8]
Even though you know that there are some potential disadvantages, you will start your business as a sole trader.
Analyse two disadvantages of starting your business as a sole trader. [6]
Disadvantage 1
Disadvantage 2
Analyse two benefits of differentiating your photography services from competitors. [6]
Benefit 1
Benefit 2
1 Analyse two benefits of starting your (6) Award one mark for each identified benefit,
business as a partnership than as a sole up to a maximum of two marks.
trader. AND
Award one further mark for each
Indicative Content explanation of a benefit, up to a maximum
of two marks.
Benefits may include: AND
Award one further mark for each analysis
You can share the workload/ideas of a benefit (by showing the impact on the
Capital can be invested from both business or you), up to a maximum of two
partners/external sources of finance marks.
more likely to lend
You will not be responsible for all of the Ensure that the two benefits are different
firm’s debts
Responsibilities can be shared Do not accept an impact of “make life
according to each person’s easier” (TV)
skills/specialism
Business can function if one partner is Only accept references to the benefits from
way, e.g. sickness and holiday limited liability if the answer is clearly about
a limited liability partnership (LLP)
Example responses
Responsibilities in the business can be Examiner’s Comments
shared amongst the partners (1). For
example, I may be responsible for This 6 mark question, coming first in
marketing and the other for finance (1). Section B, did not overawe candidates and
This is likely to reduce my stress levels (1). was answered quite well, with most gaining
4 or more marks. There was some
Capital can be contributed from each confusion about limited liability, which does
partner (1) which means that there is not apply to a normal partnership, and
potentially more capital (1) which may occasionally answers were too formulaic
allow the business to grow more quickly by referring to “up to 20 partners” when this
(1). was just about you and Raj.
Afl
‘Analyse’ requires the candidate to show
an impact on, or reaction by, the business
(or you and Raj in this case). For example,
there will be more capital to set up the
business as Raj will contribute as a
partner. Therefore, the business may be
able to grow more quickly.
Total 6
2 Analyse two ways development of the new (6) Award one mark for each impact on
computer tablet cases may be affected by product development, up to a maximum of
changes to laws such as product safety two marks.
standards. AND
Award one further mark for each
Indicative Content explanation of an impact on product
development, up to a maximum of two
The impact of changes to laws may affect marks.
the development of the new computer AND
tablet cases: Award one further mark for each analysis
of an impact on product development, up
Cost of producing the cases may to a maximum of two marks.
increase/decrease necessitating a
change to the price charged Make sure that any answer is at least
New production techniques need to be implicitly linked to a change in the law
introduced which is realistic
New production technology/equipment
needs to be purchased Make sure the answer is referring to the
Different raw materials may need to be impact on product development (as
sourced opposed to price or channels of
New skills required by production staff distribution)
necessitating staff training/recruitment
New case designs may need to be Ensure that the two impacts are different
introduced thereby increasing the
workload of specific functions, e.g. Examiner’s Comments
marketing, research and development
Unlike the other 6 mark question (Question
Example responses 17), a lot of candidates struggled with this
The changes in product safety standards question and many did not attempt to
may mean that the materials used to answer it.
produce the cases may need to change
(1). This will result in a possible change of Many answers focused on quality issues
supplier (1) and possible or, if they did recognise a legal factor, it
increase/decrease in the cost of producing was not clear how this had changed. There
the cases (1). was generally very little understanding of
how the law could affect the development
Copyright/patent rules may change which of a product or the legal change was linked
may make it harder to ‘copy’ certain styles to another area of business such as HR or
of tablet case (1). This may require extra Marketing.
work such as design and marketing (1)
which will increase business costs (1).
ARA
Afl
There are only two legal issues (copyright
and patent and product safety standards)
listed in Section 3.4 of the specification.
They need linking to the impact on product
development.
Total 6
Total 8
4 Indicative Content (6) Award one mark for each identified benefit,
up to a maximum of two marks.
Benefits may include: AND
• Trade under an established brand Award one further mark for each
name which customers will explanation of a benefit, up to a maximum
immediately recognise of two marks.
• Receive operational advice from the AND
franchisor, e.g. business and Award one further mark for each analysis
marketing support of a benefit, up to a maximum of two
• May have opportunity to ‘network’ marks.
and share ideas with other
franchisees
• Franchisor may offer training on how
to set-up/run the business
• Benefit from any national brand
advertising and promotional
campaigns that the franchisor may
pay for
• Business concept is proven to be
successful
Example response
Total 6
Total 8
Example response
An economic recession may result in
customers’ incomes reducing and therefore
demand for basic grocery products may
increase at the expense of premium
brands (1). The types of products that
suppliers develop during a recession will
differ in line with changing customer
demand (1), e.g. if they were to develop a
new range of frozen pizza they might
develop a lower-cost product range rather
than a more luxurious selection which may
be more popular in a boom (1).
Total 6
Example response
Primary research can be designed by the
business to answer its specific needs (1).
This means that it is more relevant and
provide better quality data for me to make
decisions (1). It means that any decisions
that I make are more likely to be successful
and reduce risks (1).
Total 6
Example response
Total 6
Example response
Price skimming will involve me charging a
higher price compared with similar
products offered by competitors (L1). It will
signal that my ice creams are a luxury
product which are superior to those offered
by competitors (L2). However, there is a
risk that customers may not want my ice
creams enough to pay the additional price
Total 8
Revenue per week = £510 × 7 days = Award one mark for correct conversion to
£3,570 (1) (OFR) revenue per week
Daily total costs = £420 (OFR) Award one mark for total costs for the
week
Total costs for the week = £420 × 7 =
£2,940 (1) (OFR) Award one mark for correct profit for the
week
Profit for the week = £3,570 - £2,940 =
£630 (1) (OFR)
Total 8
Exemplar 6
Exemplar 7
Total 8
12 Analyse two disadvantages of starting your 6 Award one mark for each disadvantage, up
business as a sole trader. to a maximum of two marks.
AND
Indicative Content Award one further mark for each
explanation of a disadvantage, up to a
Disadvantages may include: maximum of two marks.
AND
Responsible for all decisions made Award one further mark for each analysis
Cannot share workload of a disadvantage (by showing the impact
Unlimited liability on the business/you), up to a maximum of
May have to work long hours two marks.
Harder to take time off/holidays
Cannot benefit from the Ensure that the two disadvantages are
skills/experience of another owner different
Limited capital raising opportunities
The third mark in each case may be
Example responses awarded independently from the second
mark for explanation
A sole trader is responsible for all
decisions made (1). This means that they Accept answers which assume that you
cannot consult or benefit from the skills of are the only person working in the
anyone else (1). Therefore, running the business
business as a sole trader may be quite
stressful for me (1). Examiner’s Comments
Unlimited liability (1). This is very risky for This was better answered than the other
you (1) as you could lose your personal six-mark question, with most candidates
possessions (1). achieving at least 3 marks and over 30%
scoring 5 or 6 marks. Unlimited liability and
ARA the issues of running a business on your
own were the most popular answers, as
shown in Exemplar 4. This shows good
structure to get the 3 marks for each
disadvantage. First, name the
disadvantage (‘unlimited liability’), second,
explain what this means (‘you personally
have to repay the debts’) and finally, what
is the impact on you or the business (‘loss
of possessions and even your house’).
Exemplar 4
Exemplar 5
Total 6
13 Analyse two benefits of differentiating your 6 Award one mark for each benefit, up to a
photography services from competitors. maximum of two marks.
AND
Indicative Content Award one further mark for each
explanation of a benefit, up to a maximum
Benefits may include: of two marks.
AND
Enable a higher price to be charged Award one further mark for each analysis
Encourage customers to choose the of a benefit (by showing the impact on the
business over rivals/competitors business/you), up to a maximum of two
Helps the business to develop brand marks.
image/brand loyalty/brand name/helps
customers to recognise the brand Ensure that the two benefits are different,
USP to make you appear different from although the impact on the business may
competition be the same
AfL
Exemplar 1
Exemplar 2
Total 6