- Mark Scheme /

Question Answer Marks AO Element Notes Guidance

1 What is meant by ‘stakeholder 2 Do not award examples

group’? as this does not answer
the question.
Clear understanding [2]: any group
or person with a (direct) interest in Do not award
the performance / activities of a affects/influences the
business decisions
Some understanding [1]: someone
affected by a business [1] or
anybody inside or outside the
business who cares about its
operations [1]

2 What is meant by ‘private 2 Do not award ‘privately

sector’? owned’ as does not
explain term OR ‘owned
Clear understanding [2]: e.g. when
by the people’ as it is too
business activities are owned by
vague.
individuals OR groups of
individuals Note: for two marks,
must have idea of
Some knowledge [1]: not
ownership and by whom.
government controlled or run by
individuals/owned by shareholders
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

3 Identify two ways to measure the 2

size of a business.
Knowledge [2 × 1]: award 1 mark
per measure.
Points might include: • Value of
sales OR value of output OR
revenue • Market share • Number
of employees • Value of capital
employed OR value of balance
sheet Do not accept profit or
answers that refer to number of
sales/ output, outlets
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

4 Identify and explain two benefits 6 Application marks may

to Alex of having a business be awarded for
partner. appropriate use of the
following: unlimited
Knowledge [2 × 1] – identification
liability (as key feature
of relevant benefit [max 2].
of partnership), use of
Application [2 × 1] – award 1 mark data in the table, bicycles
if relevant reference made to this (or relevant examples
business. such as bike parts, tyres,
saddles, gears, tools),
Analysis [2 × 1] – award 1 mark for Raul does repairs, Alex
each relevant explanation. does accounts, not given
Relevant points might include: bank loan, own savings,
want to expand, friends,
• Injection of more capital [k] to small profit.
fund expansion [app] so don’t have
to borrow as much/reduce the cost Accept benefits to Alex
of interest [an] • Share work or partnership.
load/decision making [k] so Raul
does the repairs [app] so Alex is
able to focus on his job [an] •
New/more ideas [k] so can help
business increase sales [an] •
Greater range of
expertise/skills/specialisation [k] so
can offer a better service [an] •
Share risk/losses [k] as have
unlimited liability [app] would have
someone to share financial burden
[an].
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

5 Identify two examples of business 2 For 2 marks must be two

activity in the primary sector. distinct categories.
Knowledge [2 × 1] – award 1 mark
per example.
Points might include:
mining, fishing, forestry, oil
extraction, logging, farming

6 Identify two limitations of using 2

‘number of employees’ as a
method of measuring business
size.
Knowledge: [2 × 1] – award 1 mark
per limitation.
Points could include:
• Not account for capital intensive
business/could be labour intensive
• Could have many part – time
employees • Gives no indication of
value/market share/revenue
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

7 What is meant by the ‘private 2

sector’?
Clear Understanding [2] – when a
business activities are owned by
individuals/groups of individuals.

Some Understanding [1] – e.g.

run/controlled by individuals OR
not controlled by Government OR
profit motive.
For two marks, must have idea of
ownership and by whom.
Do not accept ‘privately owned’ as
does not explain term OR ‘owned
by the people’ as it is too vague.

8 What is meant by ‘business 2 Do not award answers

plan’? that explain why it is
used e.g. support loan
Clear understanding [2] e.g. a
applications
document containing the business
aims/objectives and important
details about the operations, finance
and owners of a business
OR states aim and/or objectives
and shows how business aims to
achieve them
Some understanding [1] states one
element of plan e.g. shows
marketing strategy OR production
costs
 - Mark Scheme /

Question Answer Marks AO Element Notes Guidance

[Total: 20]