Bus P2

Cambridge International AS & A Level
BUSINESS 9609/22
Paper 2 Business Concepts 2 February/March 2023
1 hour 30 minutes
You must answer on the enclosed answer booklet.

* 9 8 8 8 5 8 2 6 8 4 *
You will need: Answer booklet (enclosed)
INSTRUCTIONS
● Answer all questions.
● Follow the instructions on the front cover of the answer booklet. If you need additional answer paper,
ask the invigilator for a continuation booklet.
INFORMATION
● The total mark for this paper is 60.
● The number of marks for each question or part question is shown in brackets [ ].
This document has 4 pages. Any blank pages are indicated.
DC (RW) 315427/1
© UCLES 2023 [Turn over
2
1 Fruit Farm (FF)
FF is a private limited company that provides packaged fruit to the industrial market (B2B). The
farm grows a variety of different fruits including apples, bananas, and strawberries. The production
process is labour intensive. FF employs 80 fruit pickers and uses piece rates as the method of
payment (see Table 1.1).
Table 1.1 Data about FF’s fruit pickers’ payment 5
Payment
($)
Apples (per box) 2.00
Bananas (per box) 1.50
Strawberries (per tray) 3.00 10
Motivation among the fruit pickers is poor. The fruit pickers’ main concerns are:
• poor induction for new employees

• no encouragement of multi‑skilling
• an autocratic management style.
The employees would like to introduce time‑based payment at a rate of $4.50 per hour, to replace 15
the piece rate payment.
The food industry has recently been criticised for a lack of sustainability. In response, FF’s
directors plan to move from single‑use plastic packaging to using recycled materials. This would
require the purchase of new machinery to package the fruit. The machinery would make the
packaging production more capital intensive. FF’s directors are also considering growing fruits 20
that require fewer chemicals and less water. However, this will require changes to FF’s supply
chain management.
(a) (i) Identify one content theory of motivation. [1]
(ii) Explain the term supply chain management. [3]
(b) (i) An employee works for 8 hours and picks 5 boxes of apples, 2 boxes of bananas and
4 trays of strawberries.
Refer to Table 1.1 and other information. Calculate the difference between the employee’s
pay using piece rates and time‑based payment. [3]
(ii) Explain one advantage to FF of introducing time‑based payment. [3]
(c) Analyse two non‑financial motivators that FF could use to motivate its fruit pickers. [8]
(d) Evaluate the likely impact on FF’s stakeholders of improving the sustainability of operations.
[12]
© UCLES 2023 9609/22/F/M/23

3
2 Wedding Gifts (WG)
WG is owned by Tomas who is a sole trader. He used to own part of a large wedding business
which failed and went into administration.
Tomas started up WG two years ago using all his savings. WG is profitable but there are no
retained profits. It has a positive cash flow and no debts.
Tomas manufactures personalised gifts using the factors of production. WG’s target market is 5
people who are getting married. Each gift can be personalised with the names of the married couple
and their wedding date. These gifts (favours) are given to wedding guests by the married couple.
The gifts are made to each customer’s specifications using a 3D printer owned by Tomas. Table 2.1
shows the data for a recent order enquiry from Jo who is getting married soon.
Table 2.1 Jo’s order details 10
Design Small star with personalisation

Quantity 250
Variable costs (per star) $1.20
Allocated fixed costs $150
Tomas prepared a quote to send to Jo. He used cost‑based pricing to add a 50% mark‑up to the 15
cost of the order and sent the quote to Jo.
Tomas received an email reply from Jo (see Fig. 2.1).
Hey Tomas
Thanks for the quote. I am a social media influencer, and my wedding will be streamed on the
internet for lots of people to see. I have 0.2m followers on social media and I know that they will 20
love your products.
I think you should give me the order for free!
Thanks, Jo
Fig. 2.1 Email from Jo
The demand for Tomas’ products is high, especially during the peak (busiest) wedding season. He 25
would like to purchase an additional 3D printing machine so that he can meet demand throughout
the year. He has found the ideal machine which will cost $60 000. Tomas knows that there are
many factors which will influence his choice of sources of finance for the new machine.
(a) (i) Identify one factor of production. [1]
(ii) Explain the term sole trader. [3]
(b) (i) Refer to Table 2.1 and other information. Calculate the total price of Jo’s order. [3]
(ii) Explain one advantage for Tomas of using cost‑based pricing. [3]
(c) Analyse one advantage and one disadvantage for Tomas of giving Jo the order for free. [8]
(d) Evaluate the most important factor which may influence Tomas’ choice of sources of finance
for the new 3D printing machine. [12]
© UCLES 2023 9609/22/F/M/23
BUSINESS 9609/22
Paper 2 Business Concepts 2 February/March 2023
MARK SCHEME
Maximum Mark: 60
Published
This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the
examination. It shows the basis on which Examiners were instructed to award marks. It does not indicate the
details of the discussions that took place at an Examiners’ meeting before marking began, which would have
considered the acceptability of alternative answers.
Mark schemes should be read in conjunction with the question paper and the Principal Examiner Report for
Teachers.
Cambridge International will not enter into discussions about these mark schemes.
Cambridge International is publishing the mark schemes for the February/March 2023 series for most
Cambridge IGCSE™, Cambridge International A and AS Level components and some Cambridge O Level
components.
This document consists of 29 printed pages.

9609/22 Cambridge International AS & A Level – Mark Scheme February/March 2023
PUBLISHED
Generic Marking Principles
These general marking principles must be applied by all examiners when marking candidate answers. They should be applied alongside the
specific content of the mark scheme or generic level descriptors for a question. Each question paper and mark scheme will also comply with these
marking principles.
GENERIC MARKING PRINCIPLE 1:
Marks must be awarded in line with:
• the specific content of the mark scheme or the generic level descriptors for the question
• the specific skills defined in the mark scheme or in the generic level descriptors for the question
• the standard of response required by a candidate as exemplified by the standardisation scripts.
Marks awarded are always whole marks (not half marks, or other fractions).
Marks must be awarded positively:
• marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond the
scope of the syllabus and mark scheme, referring to your Team Leader as appropriate
• marks are awarded when candidates clearly demonstrate what they know and can do
• marks are not deducted for errors
• marks are not deducted for omissions
• answers should only be judged on the quality of spelling, punctuation and grammar when these features are specifically assessed by the
question as indicated by the mark scheme. The meaning, however, should be unambiguous.
Rules must be applied consistently, e.g. in situations where candidates have not followed instructions or in the application of generic level
descriptors.
© UCLES 2023 Page 2 of 29

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Marks should be awarded using the full range of marks defined in the mark scheme for the question (however; the use of the full mark range may
be limited according to the quality of the candidate responses seen).
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should not be awarded with grade thresholds or
grade descriptors in mind.

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Social Science-Specific Marking Principles
(for point-based marking)
1 Components using point-based marking:

• Point marking is often used to reward knowledge, understanding and application of skills. We give credit where the candidate’s answer
shows relevant knowledge, understanding and application of skills in answering the question. We do not give credit where the answer
shows confusion.
From this it follows that we:
a DO credit answers which are worded differently from the mark scheme if they clearly convey the same meaning (unless the mark
scheme requires a specific term)
b DO credit alternative answers/examples which are not written in the mark scheme if they are correct
c DO credit answers where candidates give more than one correct answer in one prompt/numbered/scaffolded space where extended
writing is required rather than list-type answers. For example, questions that require n reasons (e.g. State two reasons …).
d DO NOT credit answers simply for using a ‘key term’ unless that is all that is required. (Check for evidence it is understood and not used
wrongly.)
e DO NOT credit answers which are obviously self-contradicting or trying to cover all possibilities
f DO NOT give further credit for what is effectively repetition of a correct point already credited unless the language itself is being tested.
This applies equally to ‘mirror statements’ (i.e. polluted/not polluted).
g DO NOT require spellings to be correct, unless this is part of the test. However spellings of syllabus terms must allow for clear and
unambiguous separation from other syllabus terms with which they may be confused (e.g. Corrasion/Corrosion)
2 Presentation of mark scheme:

• Slashes (/) or the word ‘or’ separate alternative ways of making the same point.
• Semi colons (;) bullet points (•) or figures in brackets (1) separate different points.
• Content in the answer column in brackets is for examiner information/context to clarify the marking but is not required to earn the mark
(except Accounting syllabuses where they indicate negative numbers).

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3 Calculation questions:
• The mark scheme will show the steps in the most likely correct method(s), the mark for each step, the correct answer(s) and the mark
for each answer
• If working/explanation is considered essential for full credit, this will be indicated in the question paper and in the mark scheme. In all
other instances, the correct answer to a calculation should be given full credit, even if no supporting working is shown.
• Where the candidate uses a valid method which is not covered by the mark scheme, award equivalent marks for reaching equivalent
stages.
• Where an answer makes use of a candidate’s own incorrect figure from previous working, the ‘own figure rule’ applies: full marks will be
given if a correct and complete method is used. Further guidance will be included in the mark scheme where necessary and any
exceptions to this general principle will be noted.
4 Annotation:
• For point marking, ticks can be used to indicate correct answers and crosses can be used to indicate wrong answers. There is no direct
relationship between ticks and marks. Ticks have no defined meaning for levels of response marking.
• For levels of response marking, the level awarded should be annotated on the script.
• Other annotations will be used by examiners as agreed during standardisation, and the meaning will be understood by all examiners
who marked that paper.

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Guidance on using levels-based marking
Marking of work should be positive, rewarding achievement where possible, but clearly differentiating across the whole range of marks, where
appropriate.
The examiner should look at the work and then make a judgement about which level statement is the best fit. In practice, work does not always
match one level statement precisely so a judgement may need to be made between two or more level statements.
Once a best-fit level statement has been identified, use the following guidance to decide on a specific mark:
• If the candidate’s work convincingly meets the level statement, award the highest mark.
• If the candidate’s work adequately meets the level statement, award the most appropriate mark in the middle of the range.
• If the candidate’s work just meets the level statement, award the lowest mark.
• L1, L2 etc. must be clearly annotated on the response at the point where the level is achieved.
Assessment objectives
AO1 Knowledge and understanding

Demonstrate knowledge and understanding of business concepts, terms and theories.
AO2 Application
Apply knowledge and understanding of business concepts, terms and theories to problems and issues in a variety of familiar and unfamiliar
business situations and contexts.
AO3 Analysis
Analyse business problems, issues and situations by:
• using appropriate methods and techniques to make sense of qualitative and quantitative business information
• searching for causes, impact and consequences
• distinguishing between factual evidence and opinion or value judgement
• drawing valid inferences and making valid generalisations.
AO4 Evaluation
Evaluate evidence in order to make reasoned judgements, present substantiated conclusions and, where appropriate, make recommendations for
action and implementation.

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PREPARATION FOR MARKING
1 Make sure that you have completed the relevant training and have access to the RM Assessor Guide.
2 Make sure that you have read and understand the question paper, which you can download from https://support.rm.com/ca
3 Log in to RM Assessor then mark and submit the required number of practice and standardisation scripts. You will need to mark the
standardisation scripts to the required accuracy in order to be approved for marking live scripts. You may be asked to re-mark them, or to mark
a second sample, if you do not meet the required accuracy on your first attempt.
MARKING PROCESS
1 Mark strictly to the FINAL mark scheme, applying the criteria consistently and the general marking principles outlined on the previous page.
2 If you are in doubt about applying the mark scheme, consult your Team Leader.
3 Mark at a steady rate through the marking period. Do not rush, and do not leave too much until the end. If you anticipate a problem in meeting
the deadline, contact your Team Leader immediately and the Examiners’ Helpdesk.
4 Examiners will prepare a brief report on the performance of candidates to send to their Team Leader via email by the end of the marking
period. The Examiner should note strengths seen in answers and common errors or weaknesses. Constructive comments on the question
paper, mark scheme or procedures are also appreciated.
MARKING SPECIFICS
Crossed out work
1 All a candidate’s answers, crossed out or not, optional or not, must be marked.
2 The only response not to be marked is one that has been crossed out and replaced by another response for that exact same question.
3 Consequently, if a candidate has crossed out their response to an optional question and gone on to answer a different optional question then
both attempts must be marked. The higher mark will be awarded by the system according to the rubric.
0 (zero) marks or NR (no response)

1 Award NR if there is nothing at all written in answer to that question (often the case for optional questions).
2 Award NR if there is a comment which is not an attempt at the question (e.g. ‘can’t do it’ or ‘don’t know’ etc.)
3 Award NR if there is a symbol which is not an attempt at the question, such as a dash or question mark.
4 Award 0 (zero) if there is any attempt at the question which does not score marks. This includes copying the question onto an Answer
Booklet.
Annotation
1 Every question must have at least one annotation e.g. <NAQ> if it is an NR and <X> or <seen> if 0 marks are awarded.
2 Every page of a script must have at least one annotation e.g. <BP> for a blank page.

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Question Answer Marks
1(a)(i) Identify one content theory of motivation. 1
Indicative content.
Responses may include:

• Taylor / scientific management
• Mayo / human needs / Hawthorne effect
• Maslow / hierarchy of needs
• Herzberg / 2 factors
• McClelland / 3 needs
Accept all valid responses.

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1(a)(ii) Explain the term supply chain management. 3
AO1 Knowledge and understanding AO2 Application

1 mark 2 marks
2 marks
Developed application of one relevant point to a business
context.
1 mark 1 mark
Knowledge of one relevant point is used to answer the Limited application of one relevant point to a business
question. context.
0 marks 0 marks
No creditable response. No creditable response.
Indicative content

The coordination (allow management) of the flow/movement of goods and services / raw materials.
AO2 Application
Limited application applies knowledge of supply chain management from one aspect of the supply chain (i.e. suppliers
to a business, within a business or from the business to customers).
Developed application + applies knowledge of supply chain management in two or more aspects of a business.
Exemplars for application:

• Between suppliers and the business – and the business to customers .
• Between different parts of the business – and to the customer.
• Raw materials within the business – and distribution channels.
• Involves the complete chain of inventory from suppliers – or to customers.
• Involves inventories, such as raw materials – and finished goods.

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1(b)(i) An employee works for 8 hours and picks 5 boxes of apples, 2 boxes of bananas and 4 trays of strawberries. 3
Refer to Table 1.1 and other information. Calculate the difference between the employee’s pay using piece rate
and time-based payment.
Indicative content.
Piece rate:
Apples – 5 boxes  $2 = $10
Bananas – 2 boxes  $1.50 = $3
Strawberries – 4 trays  $3 = $12
Total pay = $25 (1)
Time based:
8 hours  $4.50 = $36 (1)
Difference:
$36 – $25 = $11 (1 OFR applies)
Answer = ($)11 (3)

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1(b)(ii) Explain one advantage to FF of introducing time-based payment. 3

1 mark 2 marks
2 marks
context.
1 mark 1 mark
question. context.
0 marks 0 marks

Advantages of time-based payment method may include:
• improves flexibility
• improves quality
• easier to forecast cash flow / costs
• produce more output
• motivates employees.
AO2 Application
Limited application , applies knowledge to FF once.
Developed application + applies knowledge to FF twice.
• Higher payment to fruit pickers
• Answer to Q1(b)(i) (OFR)
• FF already has poor motivation among its fruit pickers
• Fruit pickers on piece rate may choose poor quality e.g., unripe/over-ripe fruit to fill boxes/trays
• Different fruit may be more financially beneficial to fruit pickers on piece rate
• $4.50 is only one flat payment.

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1(c) Analyse two non-financial motivators that FF could use to motivate its fruit pickers. 8
Level AO1 Knowledge and AO2 Application AO3 Analysis

understanding 2 marks 4 marks
2 marks
2 3–4 marks
Developed analysis
• Developed analysis that identifies connections
between causes, impacts and/or consequences
of two points.
of one point.
1 1–2 marks 1–2 marks 1–2 marks

• Knowledge of two • Application of two Limited analysis
relevant points is used relevant points to a • Limited analysis that identifies connections
to answer the business context. between causes, impacts and/or consequences
question. • Application of one of two points.
• Knowledge of one relevant point to a • Limited analysis that identifies connections
relevant point is used business context. between causes, impacts and/or consequences
to answer the of one point.
question.
0 0 marks 0 marks 0 marks

No creditable response. No creditable response. No creditable response.
Annotate the first non-financial motivator ( ) in the left margin.

Annotate the second non-financial motivator ( ) in the right margin.

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1(c) Responses may include:

Knowledge of non-financial motivators (max 2 s), including:
• Induction training
• On the job / off the job training
• opportunities for promotion
• development
• status
• job re-design
• team working
• empowerment
• participation / different leadership / management style
• job enrichment.
Do not allow any financial motivators, including: time based, salary, piece rates, commission, bonuses, profit sharing,
performance-related pay, fringe benefits, paid holiday, gifts etc.
AO2 Application
Max one for application in the first non-financial motivator and max one for application in the second non-financial
motivator.
Application of knowledge of a non-financial motivator to FF (max 2 s), including
• Fruit picking is labour intensive work .
• 80 fruit pickers currently employed who are paid using piece rate, but would like time based
• Change to time-based would increase FF’s costs significantly, 44% increase (based on OFR Q1(b)(i)).
• Poor induction.
• No encouragement of multi-skilling.
• Autocratic management style.

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1(c) AO3 Analysis

Limited analysis – candidate shows one link in the chain of analysis.
Developed analysis candidate shows two or more links in the chain of analysis or a two-sided analysis.
Analysis may include:

• (Training) can improve the induction of employees and lead to greater efficiency – greater sales, profit .
• (Development) could be used to encourage employees to move between different jobs which increases employee
flexibility – increased efficiency / sales / profit.
• (Job re-design) may reduce the costs for FF – increased profitability.
A two-sided analysis may also provide development:

• (Team working) may allow different employees to work together which may improve efficiency – however may
increase costs / cause distraction among employees .
• (Empowerment) may improve the quality of decisions made – however FF’s fruit pickers may not make good decisions
that benefit the business.
• (Participation) may lead to improved efficiency – however could slow down decision-making process.
• (Job enrichment) may make the employees want to and produce more – however there may not be any opportunities
for enrichment.

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1(d) Evaluate the likely impact on FF’s stakeholders of improving the sustainability of operations. 12
Level AO1 Knowledge and AO2 Application AO3 Analysis AO4 Evaluation
understanding 2 marks 2 marks 6 marks
2 marks
3 5–6 marks
Developed evaluation in context
• A developed
judgement/conclusion is made
in the business context.
• Developed evaluative
comments which balance
some key arguments in the
business context.
2 2 marks 2 marks 2 marks 3–4 marks

Developed knowledge Developed Developed analysis Developed evaluation
of relevant key term(s) application of that identifies • A developed
and/or factor(s) is used relevant point(s) to connections between judgement/conclusion is made.
to answer the question. the business causes, impacts and/or • Developed evaluative
context. consequences. comments which balance
some key arguments.
1 1 mark 1 mark 1 mark 1–2 marks

Limited knowledge Limited application Limited analysis Limited evaluation
of relevant key term(s) of relevant point(s) that identifies • A judgement/conclusion is
and/or factor(s) is used to the business connections between made with limited supporting
to answer the question. context. causes, impacts and/or comment/evidence.
consequences. • An attempt is made to balance
the arguments.
0 0 marks 0 marks 0 marks 0 marks

No creditable response. No creditable No creditable response. No creditable response.
response.

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1(d) Responses may include:

Limited knowledge will be demonstrated through knowledge of sustainability or knowledge of a stakeholder.
Developed knowledge + will be demonstrated from the knowledge of sustainability and knowledge of a stakeholder.
For example:
Knowledge of sustainability (max 1 ), including:

• the importance of sustainability, or a green business, is when a business has minimal negative impact or a positive
effect on the global or local environment, community, society, or economy.
• The impact of sustainability in terms of cost, publicity, new markets etc.
Knowledge of business stakeholders (max 1 ), including:

• individuals or groups with an interest in the activities of a business
• internal stakeholders e.g. owners/shareholders, employees, managers / external stakeholders e.g. customers, local
community, suppliers
• the roles, rights and responsibilities of stakeholders.
AO2 Application
Limited application applies knowledge of FF once.
Developed application + applies knowledge of FF twice.
• FF provides products to the industrial market (not consumer market) .

• Move from single use plastic in packaging to recycled materials .
• Current system is labour intensive – new machinery would be capital intensive.
• Less chemicals used in growing.
• New Supply Chain Management required.
• Relevant stakeholders of FF; fruit pickers, shareholders (FF is a private limited company), industrial customers (likely
to be grocery shops, supermarkets, restaurants etc.), suppliers (seeds, packaging), directors, environmentalists, local
community (farm – large agricultural area), final customers (of fruit purchased in shops).
AO3 Analysis
Developed analysis – candidate shows two or more links in the chain of analysis.

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1(d) Impacts may include:

• Increase in costs e.g. purchase of machinery, cost of recycled materials
– (Shareholders) reduced profit in the short run , however, may increase profitability in the long run .
– (Directors) opportunity cost of new capital / increased decisions to be made – reduced employees to supervise.
– (Customers) increased price – may attract a new market of final customers (who favour sustainable products).
• More environmentally sustainable:
– (Customers) may choose to stock more of FF’s products – to attract environmentally conscious final customers.
– (Environmental groups) may be happier with FF – may become customers of FF’s customers.
– (Fruit pickers) may prefer to work for an environmentally sustainable business – may increase motivation.
– (Suppliers) may not be able to provide new materials so may lose sales – decreased profit.
– (Suppliers) FF may use new suppliers who gain FF as a customer – increased revenue.
• New supply chain management:
– (Suppliers) may have to change what is sold to FF – increasing suppliers’ costs.
– (Environmental groups) may be happier with FF – and get more satisfaction from FF’s products.
– (Local community) may be happier from less chemicals being used – increase value of homes / more pleasant
living conditions.
– (Shareholders) may increase costs – however, may also increases sales to new customers.
• Change to capital intensive packaging process:
– (Shareholders) increased production costs – however, may increase profitability with new target market.
– (Employees) may no longer be required and may face redundancy – reduced income.
AO4 Evaluation
Limited evaluation - unsupported judgement and/or a weak attempt at evaluative comment
Developed evaluation – supported judgement and/or reasonable evaluative comment
Developed evaluation in context - supported judgement in context and/or reasonable evaluative comment in context.
• A judgement about the likely impacts of measures to improve the sustainability of operations on the stakeholders of
FF.
• A judgement over which stakeholder(s) may be most impacted by the measures to improve sustainability.
• A judgement over the measures which are most likely to impact the stakeholders.
• Elements that the judgement could depend upon, including, the number of workers in the packaging section, the cost
of the machinery to produce the recycled packaging, the availability of new suppliers, the level of impact on FF’s
costs/profitability, the objectives of different stakeholder groups, the objectives of FF.
• Weighing up of the impacts on stakeholders of the proposed measures to improve the sustainability of FF.
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2(a)(i) Identify one factor of production. 1
Indicative content
The four factors of production:
• land
• labour
• capital
• enterprise/entrepreneurship.
Do not accept examples of the factors of production.

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2(a)(ii) Explain the term sole trader. 3

1 mark 2 marks
2 marks
context.
1 mark 1 mark
question. context.
0 marks 0 marks

• One individual or one person (must be a clear idea of a single person) owning a business .
AO2 Application
Limited application , applies knowledge of a sole trader through one aspect of the ownership.
Developed application + applies knowledge of a sole trader through two or more aspects of the ownership.
One mark for each of the following (up to a maximum of two marks):
• unlimited liability
• shared legal identity with business
• no continuity
• no requirement to produce or make available accounts
• unincorporated / no shares / no shareholders
• likely to be a small business
• the owner keeps all the profits or bears the losses

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2(a)(ii) • has all the risk

• the owner has full control / makes all decisions themselves
• example of a sole trader.
2(b)(i) Refer to Table 2.1 and any other information. Calculate the total price of Jo’s order. 3
Indicative content
1 mark for formula or correct calculation of total costs ($450)

1 mark for calculation of mark-up (+50% OFR)
1 mark for calculation of price (adding TC to mark up OFR)
• Formula: price = total costs (TVC + FC) + mark-up (1)

• Calculation of total cost (1)
– 250  $1.20 = $300 + $150 = $450 (1)
• Calculation of price (1 OFR)
– $450  1.5 = $675
Answer = ($)675 (3)

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2(b)(ii) Explain one advantage for Tomas of using cost-based pricing. 3

1 mark 2 marks
2 marks
context.
1 mark 1 mark
question. context.
0 marks 0 marks

Knowledge of an advantage of using cost-based pricing , including:
• easy to calculate
• flexibility/ can change price for different customers /products
• all costs are covered
• always provides a profit (margin per unit) / does not make a loss
AO2 Application
Limited application , applies knowledge to Tomas/WG once.
Developed application + applies knowledge to Tomas/WG twice.
Application of knowledge to FF may include:
• answer to Q2(b)(i) (OFR)
• Will give Tomas a 33.33% profit margin
• Tomas’ variable costs ($1.20)

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2(b)(ii) • Tomas’ allocated fixed costs ($150)

• 3D printer accessories, such as computer, graphite, carbon fibre etc.
• level of mark-up (50%)
• Will provide Tomas with a $375 contribution to FC
• Will provide Tomas with a $225 profit on Jo’s order

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2(c) Analyse one advantage and one disadvantage for Tomas of giving Jo the order for free. 8

2 marks
2 3–4 marks
Developed analysis
• Developed analysis that identifies
connections between causes, impacts
and/or consequences of two points.
and/or consequences of one point.

• Knowledge of two • Application of two relevant Limited analysis
relevant points is used points to a business • Limited analysis that identifies connections
to answer the context. between causes, impacts and/or
question. • Application of one relevant consequences of two points.
• Knowledge of one point to a business • Limited analysis that identifies connections
relevant point is used context. between causes, impacts and/or
to answer the consequences of one point.
question.

Annotate the advantage ( ) in the left margin.
Annotate the disadvantage ( ) in the right margin.

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2(c) AO1 Knowledge and understanding
Knowledge of an advantage (max one ) might include:

• open up new markets
• promote the business
• Increased publicity
• increased (future) sales.
Knowledge of a disadvantage (max one ) might include:

• lost revenue
• missed opportunity
• Not cover costs
• reduced profitability.
AO2 Application
Limited application, applies knowledge to Tomas/WG once.
Max one for application in the advantage and max one for application in the disadvantage
• Price with mark-up should be $675 (OFR from Q2(b)(i)) .
• Total variable costs for the order of $300 .
• Allocated fixed costs on this order of $150.
• Total (full) cost will be $450.
• Jo would like the products for free
• Jo is a social media influencer 0.2m followers wedding streamed on internet
• WG is at 90% capacity which may mean that he can produce Jo’s order

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2(c) AO3 Analysis

Advantages, including:
• (Open up new markets) may open WG up to a new market of people who might use WG in the future – increased
sales, profit .
• (Promote the business) marketing benefits may allow Tomas to increase sales and make the purchase of the new
machine more likely – although may be busy, the promotion may lead to future orders which will be needed to afford
the machine.
• (Increased future sales) promotion through this is likely to be lower cost than above the line methods of promotion to a
similar number of people – increased profitability.
Disadvantages, including:
• (Lost revenue) order would make a loss – which may affect Tomas’ income or lead to WG making a loss for the
year .
• (Missed opportunity) Since Jo has suggested promotion for WG, the price she paid may be advertised – leading to
Tomas being unable to charge full-price to future orders.
• (Reduced profitability) taking the order will affect Tomas’ profitability and may jeopardise his ability to gain external
finance – may not be able to purchase the new machine.

PUBLISHED
2(d) Evaluate the most important factor that may influence Tomas’ choice of sources of finance for the new 3D printing 12
machine.
understanding 2 marks 2 marks 6 marks
2 marks
3 5–6 marks
• A developed
business context.
and/or factor(s) is used relevant point(s) to connections between judgement/conclusion is made.
to answer the question. the business causes, impacts • Developed evaluative
context. and/or consequences. comments which balance
some key arguments.
Limited knowledge Limited Limited analysis Limited evaluation
of relevant key term(s) application that identifies • A judgement/conclusion is
and/or factor(s) is used of relevant point(s) connections between made with limited supporting
to answer the question. to the business causes, impacts comment/evidence.
context. and/or consequences. • An attempt is made to balance
the arguments.
No creditable response. No creditable No creditable No creditable response.
response. response.

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2(d) Responses may include:

Limited knowledge will be demonstrated through knowledge of a factor or knowledge of source(s) of finance.
Developed knowledge + will be demonstrated through knowledge of a factor and knowledge of source(s) of finance.
Factors influencing sources of finance, including:

• cost
• flexibility
• need to retain control/ownership
• the use to which it is put / type of business
• level of existing debt
• Availability of funds/finance – may not have any retained profit / may be a country with no banking infrastructure.
• Size of the business – a large business may have more collateral.
• Reputation (credit rating) – of the business/owner
Knowledge of sources of finance

• Internal and external sources of finance
• Identification of any source of finance (owners’ investment, retained earnings, sale of unwanted assets, sale and
• leaseback of non-current assets, working capital, share capital, debentures, new partners, venture capital, bank
overdrafts, leasing, hire purchase, bank loans, mortgages, debt factoring, trade credit, micro-finance, crowd funding
and government grants)
AO2 Application
Limited application applies knowledge to Tomas/WG once.
• $60 000 for new machine

• WG/Tomas is a sole trader
• Previous business went into administration
• WG is profitable
• 33.33% profit margin

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2(d) • 50% mark up

• but not enough retained earnings to fund whole $60 000
• No current debts
• Positive cash flow
• Niche market
• 3D printer, owned by Tomas
AO3 Analysis
• (Cost) small businesses are likely to need an external source of finance – however there will be a cost (interest,
payments etc.) which might make WG unprofitable .
• (Flexibility) may allow a wider choice of source – however without repeat business there is little stability of income.
• (Need to retain control) by taking a partner or selling shares the owner is likely to lose full control – however may not
be able to attract an investor.
• (The use to which it is put) gains a fixed asset with value – may make a securable source of finance more likely to be
given (at a lower cost).
• (Level of existing debt) will increase debt to be paid back – could makes some sources unobtainable or more
expensive.
• (Type of business) new businesses are likely to have high repayments – reducing the profitability.
• (Ownership) selling part of the business may bring in enough capital – however the percentage required by the
investor might be very high.
AO4 Evaluation
Limited evaluation – unsupported judgement and/or a weak attempt at evaluative comment
Developed evaluation in context - supported judgement in context and/or reasonable evaluative comment in context
• A judgement over the most important/influential factor when Tomas is choosing the sources of finance for the new 3D
printing machine.

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2(d) • Elements that the judgement could depend upon, including: level of current and forecast demand, will there be enough
demand to cover the cost of repayments, potential partners/investors, will Tomas be able to work with these
personalities, Tomas’ willingness to give up control of WG, the extent to which external sources of finance are open to
Tomas with his background, the willingness of the supplier to offer terms of credit, etc.
• Weighing up of the factors and their relative influence on Tomas’ decision of sources of finance.

BUSINESS 9609/21
Paper 2 Business Concepts 2 October/November 2023
1 hour 30 minutes

* 7 2 8 1 1 8 8 6 0 1 *
INSTRUCTIONS
INFORMATION
DC (RW) 316881/1
2
1 Plasshape (PS)
PS manufactures plastic packaging for industrial markets (B2B). Its customers include food
manufacturers and cosmetics firms. PS has 500 employees in each of two countries with
a similar factory in each country. Employee payment methods and non‑financial motivators
vary in each factory.
In country Z, PS uses time‑based payment methods, offers employee development and 5

uses many non‑financial motivators. In country V, PS uses piece rate payment methods,
but there are fewer opportunities for employee development and non‑financial motivators
are not used. Some employees are demanding equal pay and opportunities for employee
development in both PS factories.
Technology is changing rapidly in the packaging industry. PS’s research and development 10
(R&D) team has developed an environmentally friendly type of food packaging. However,
this costs more to make and it will need investment in new machinery. This unique new
packaging product is expected to increase added value.
Table 1.1 shows a summary of PS’s financial data if it does not launch the new packaging
product. 15
Table 1.1 PS’s financial data if it does not launch the new packaging product
$m
Revenue 40
Direct costs 26
Indirect costs 6 20
If PS launches the new packaging product, Isha, the Finance Manager, forecasts the
following changes:
• revenue increases by 30%
• direct costs increase by $6m
• indirect costs increase by $1m. 25
(a) (i) Identify one non‑financial motivator. [1]
(ii) Explain the term piece rate (line 6). [3]
(b) (i) Refer to Table 1.1 and other information. Calculate the change in forecast profit if the
new product is launched. [3]
(ii) Explain one way PS could use cost information to improve business performance. [3]
(c) Analyse two elements of the marketing mix that PS should consider when launching the new
packaging. [8]
(d) Evaluate whether PS should use the same payment method and employee development in
both factories. [12]
© UCLES 2023 9609/21/O/N/23

3
2 Direct News (DN)
Shila and Lucy own and manage DN, an online publishing business. DN produces a daily
online local newspaper called QNews. Readers pay a subscription to access QNews. DN’s
mission statement is: ‘to be a daily community newspaper for local people, about local
people’.
DN recently tested a monthly online magazine aimed at the 18–30 age group called 5
QLine. DN’s plan is to stop publishing QNews and produce only QLine. Secondary market
research suggests QLine will be popular with national businesses wanting to promote their
products.
Shila is aware that revenue from online newspapers is decreasing. However, she has found
national market research data about online monthly magazines (see Table 2.1). 10
Table 2.1 National revenue for online monthly magazines
Revenue source 2020 ($m) 2021 ($m) 2022 ($m)

Subscription 25 60 90
Advertising revenue 25 30 60
Shila thinks that before the business decides to produce QLine, more market research data 15
will be needed. Shila and Lucy will have to decide on new objectives for DN.
To ensure a quality product that meets customer expectations, Lucy thinks it is important to
have careful management of the supply chain, from content creation to customer delivery.
(a) (i) Identify one function of a manager. [1]
(ii) Explain the term secondary market research (lines 6–7). [3]
(b) (i) Refer to Table 2.1. Calculate the percentage increase in total revenue of online monthly
magazines from 2020 to 2022. [3]
(ii) Explain one additional piece of market research data DN would find useful before making
the decision to produce QLine. [3]
(c) Analyse two reasons why Shila and Lucy will have to change DN’s objectives. [8]
(d) Evaluate the importance to DN of effective supply chain management. [12]
© UCLES 2023 9609/21/O/N/23

BUSINESS 9609/21
Paper 2 Data Response October/November 2023
MARK SCHEME
Maximum Mark: 60
Published
Teachers.
Cambridge International is publishing the mark schemes for the October/November 2023 series for most
Cambridge IGCSE, Cambridge International A and AS Level components, and some Cambridge O Level
components.

9609/21 Cambridge International AS & A Level – Mark Scheme October/November 2023
PUBLISHED
marking principles.
• marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond
the scope of the syllabus and mark scheme, referring to your Team Leader as appropriate
descriptors.

PUBLISHED


shows confusion.
wrongly.)

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for each answer
stages.
4 Annotation:

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appropriate.
• Eval, E or EE etc. must be clearly annotated on the response at the point where the level is achieved.

AO2 Application
AO3 Analysis
AO4 Evaluation

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Annotations
To award Proposed Comment

annotation
Correct For objective points that are right or wrong.
Incorrect For objective points that are wrong.
Unclear When there is a misunderstanding in a response.
Too Vague When the candidate has attempted something, but the
mark/skill has not been awarded.
Highlight Highlighter To highlight a point or section of an answer that justifies the

mark / annotation.
Benefit of doubt When the candidate has attempted something, and the
mark / skill has been awarded.
On page comment On page Rarely used in live marking.

comment Very useful for practice scripts.
To communicate with the supervisor.
Not using text When the context has not been used.
Seen To show a page / section has been seen / read.
Not answering question When the response is not focussed on answering the question.

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annotation
Repetition The repetition of a previous point in a response

Or
Candidate is copying the case study / data.
Own figure rule The own figure rule applies – acts as a mark / tick.
Knowledge (AO1) L1 When AO1 has been awarded.

Number of Ks should match the mark awarded.
Knowledge (AO1) L2
Application (AO2) L1 When AO2 has been awarded.

Number of APPs should match the mark awarded.
Application (AO2) L2
Analysis (AO3) L1 When AO3 at Level 1 has been awarded.
Evaluation (AO4) L1 When AO4 at Level 1 has been awarded.

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1(a)(i) Identify one non-financial motivator. 1
Indicative content:
Identification of an element may include:

• Job rotation / enlargement / enrichment
• Job redesign
• Training and development
• Promotion, status and empowerment
• Teamworking
• Quality circles

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1(a)(ii) Explain the term piece rate. 3
AO1 Knowledge and understanding – 1 mark AO2 Application – 2 marks
2 marks
Developed application of one relevant point to a business context.
1 mark 1 mark
Knowledge of one relevant point is used to answer Limited application of one relevant point to a business context.
the question.
0 marks 0 marks
Indicative content
AO1 Knowledge and understanding.
Knowledge of piece rate may include:
• Payment for each item produced
• Ensures employees paid for the amount of work they do
• Payment by results
No further marks can be gained without knowledge and understanding.
AO2 Application
Limited application
• applies knowledge of piece rate to a product OR business.
OR
• Example or some other way of showing good understanding of piece rate.
Developed application +
• applies knowledge of piece rate to a product AND a business.
AND
• Example or some other way of showing good understanding of piece rate.
Application can be made to PS or any other scenario / context / business / product.


PUBLISHED
1(a)(ii)
Exemplar and annotations Mark Rationale
Based on how many units produced used when 3 An answer which starts with the knowledge and then
output can be measured and it can then be a applies it to a type of output and develops the point in
financial motivator. . a business context.
Paid per unit produced for example if the employee 3 Again, knowledge first, followed by application to a
receives $5 per unit, produces 20 units in a day, they business scenario, with a developed example.
will be paid $100 for the day. .
Paid per item manufactured , in country V 2 Clear knowledge. Application to an example of a

employees paid according to the amount of plastic business from the case study.
packaging produced .
Pay depends on their units of output . 1 Not a perfect definition, but enough to award the
knowledge mark. No attempt to apply.
Paying and rewarding for hours they complete 0 This is a time-based payment.
Payment for the numbers sold 0 This is commission not piece-rate.

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1(b)(i) Refer to Table 1.1 and other information. Calculate the change in forecast profit if the new product is launched. 3
Profit with new product – profit without new product OR [(TR-TC new) – (TR-TC old)] (1)
Profit before new product = 40 – (26 + 6) = $8m
Profit after new product introduced:
Revenue = 40 + 30% = 52 (1)
Direct costs + indirect costs = 32 + 6 + 1 = 39 (1)
52 – 39 = $13 m (1)
Change in profit = 13 – 8 (2)
= $5 m (accept 5) (3)
Note: may calculate the percentage change which is 62.5% (3) (5 / 8  100).
Marks Answer Rationale
3 Correct answer Working, m and $ sign do not matter but if

5 or 62.5% answer a percentage must have %
Must be three to denote the three marks.
2 Both of the following: To award two marks, there must be

• Correct / implied formula [Profit with new product- • Two and a
profit without new product] OR
AND
• One , one and one
• Correct calculation of either new revenue (52)
• Correct calculation of new costs (39)
• Correct calculation of original profit (8)
• new profit (13)
OR
An incorrect answer with one mistake allowing OFR for
final stage.

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1(b)(i)
1 One of the following: To award one mark, there must be:

• Correct / implied formula [Profit with new product- One and two
profit without new product]
OR
• Correct calculation of either new revenue (52)
• Correct calculation of new costs (39)
• Correct calculation of new profit (13)
• Correct calculation of original profit (8)
0 No creditable content. To award zero marks, there must be

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1(b)(ii) Explain one way PS could use cost information to improve business performance. 3
2 marks
context.
1 mark 1 mark
question. context.
0 marks 0 marks
Indicative content – Responses may include:

AO1 Knowledge and understanding:
Knowledge of a use of cost information to improve business performance :
• Help make the investment decision / to obtain loans e.g from a bank.
• Identify unnecessary expense.
• Forecast profit.
• To set prices.
• To improve cash flow.
• other factors involved e.g. cost of investment, future market conditions, whether the product will be successful
AO2 Application
Limited application , applies knowledge to PS once.
Developed application + applies knowledge to PS twice OR applies once to PS AND develops answer to explain how
it can help improve business performance.
• The profit has increased from $8m to $13m.
• Environmentally friendly.
• Added value.
• Expenses do not increase very much so can spread over higher number of units.

PUBLISHED
1(b)(ii)
To consider where costs can be reduced , as 3 A use explained in the specific context of PS by using the
PS move to becoming more capital intensive information in the case study and develops answer to
which will require capital investment . explain why it is useful.
To determine the impact on profits , if PS launch 3 A financial use in this one and there is context from the
the new packaging, profits forecast to increase data in Table 1.1., also how the use given is linked to the
by $5 m (62.5% or OFR) issue.
To determine if PS can launch the new packaging 3 Although the appears first, it cannot be awarded until
as costs will impact the decision but the the has been found. However, there is obvious , so
forecast revenue increase is greater than the cost you can go back and award the .
increase .
To compare labour costs because PS use 2 Relevant use . The context linked to this is reasonable
different payment methods . , but is not developed.
To help improve cashflow as cost information 1 Knowledge of a use. The rest of the answer is not applying
includes fixed and variable costs it to the context so (Not Answering Question).
To consider where costs can be reduced , to 1 Both are knowledge of a use but there is only 1 mark for
help improve cashflow knowledge .

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1(c) Analyse two elements of the marketing mix that PS should consider when launching the new packaging. 8

2 marks
2 3–4 marks
Developed analysis
and / or consequences of two points.
and / or consequences of one point.

• Knowledge of two relevant • Application of two relevant Limited analysis
points is used to answer the points to a business • Limited analysis that identifies
question. context. connections between causes, impacts
• Knowledge of one relevant • Application of one relevant and / or consequences of two points.
point is used to answer the point to a business context. • Limited analysis that identifies
question. connections between causes, impacts

Indicative content
Knowledge of elements of the marketing mix (max 2 s), may include:
• Product
• Price
• Promotion
• Place (distribution channels)

PUBLISHED
1(c) No further marks can be gained without knowledge and understanding.
AO2 Application
Max one application for the first element and a second , application for the second element
• Product environmentally friendly
• Higher cost of production
• Used for packaging food
• Premium product
AO3 Analysis
Developed analysis – candidate shows two or more links in the chain.
• Product is environmentally friendly – could use in marketing and may allow a premium price
• Costlier to produce – likely to be higher priced than competitors
• Quality is an issue particularly as product is used with food
• May have an impact on sales of existing products and therefore their Marketing
Exemplars and annotations
AO1 Knowledge AO2 Application AO3 Analysis
One element of the marketing mix When launching the Price directly affects the demand from
that PS should consider is price . environmentally friendly packaging businesses that buy the environmentally
Annotations for the first impact friendly packaging therefore they could
should be placed in the left-hand use penetration pricing and set the prices
margin. low when they launch .
Another element of the marketing For example, when a business They can give discounts or some of their
mix could be promotion. buys their new environmentally other products for free, this will lead to a
Annotations for the second friendly packaging above a certain higher willingness to buy their new product
impact should be placed in the amount and they will be noticed in the market and
right-hand margin. increase their sales

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1(d) Evaluate whether PS should use the same payment method and employee development in both factories. 12
Level AO1 Knowledge and AO2 Application – AO3 Analysis – AO4 Evaluation – 6 marks
understanding – 2 marks 2 marks 2 marks
3 5–6 marks
Developed evaluation in
context
• A developed
judgement / conclusion is
made in the business
context.
business context.
Developed knowledge of Developed Developed analysis Developed evaluation
relevant key term(s) application of that identifies • A developed
and / or factor(s) is used to relevant point(s) to connections between judgement / conclusion is
answer the question. the business causes, impacts made.
context. and / or consequences. • Developed evaluative
some key arguments.
of relevant key term(s) of relevant point(s) that identifies • A judgement / conclusion is
and / or factor(s) is used to to the business connections between made with limited supporting
answer the question. context. causes, impacts comment / evidence.
and / or consequences. • An attempt is made to
balance the arguments.
response.

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1(d) Indicative content

AO1 Knowledge and understanding - knowledge of one of the key terms (max 2 s), including:
• Payment methods
• Development opportunities
• Depends on finances
• Financial / non-financial motivators
AO2 Application
Limited application applies knowledge of payment method / employee development of PS once.
Developed application + applies knowledge of payment method / employee development of PS twice.
• Currently pay and opportunities different in countries
• Payments different, time based v piece rates
• Fewer opportunities in some countries
• Use of non-financial motivators vary
• Employees demanding equal treatment
AO3 Analysis
Analysis marks can be awarded without context.
• Could be expensive.
• Management of change can be difficult.
• Could lead to discontent with those workers who have an advantage.
• Might be difficult to get arrangements that suit laws in several countries.
• May not recognise local conditions.
• May give firm good reputation as fair employer.
• Could enable employees to move from country to country easily.
• Would act as a motivator in some countries.
• Whether or not trades unions are involved and the extent to which they cooperate.

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1(d) AO4 Evaluation

Limited evaluation – unsupported judgement and / or a weak attempt at evaluative comment
Developed evaluation – supported judgement and / or reasonable evaluative comment
Developed evaluation in context – supported judgement in context and / or reasonable evaluative comment in context.
• A justified recommendation
• Identifying that the decision will ultimately depend on a number of unknowns (e.g. extent of differences between the
regulations, financial state of firm, strength of views of workforce).
• Discussion of costs v benefits
Exemplars for awarding evaluation
L1 (limited L2 (developed supporting L3 (developed supporting evidence with

supporting evidence) evidence) context)
PS should use the PS should use the same payment PS should use the same payment method and
same payment method method and employee development in employee development in both factories and should
and employee both factories and should use time- use time-based pay, non-financial motivators and
development in both based pay, non-financial motivators and employee development in country Z as this will
factories employee development increase motivation and satisfy the employees
demanding equal pay and opportunities.
PS shouldn’t use the PS shouldn’t use the same payment PS shouldn’t use the same payment method in both
same payment method method in both countries because in countries because in one country employees might
in both countries one country employees might be more be more motivated by non-financial motivators, such
motivated by non-financial motivators. as in country Z, whereas in country V employees
might like to know they can get higher pay by
working faster.

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2(a)(i) Identify one function of a manager. 1
Indicative content
Identification of a function may include:
• Planning
• Organising
• Directing
• Controlling
• Fayol – Commanding, motivating, co-ordinating and measuring performance / appraisal

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2(a)(ii) Explain the term secondary market research. 3
2 marks
1 mark 1 mark
the question.
0 marks 0 marks
Indicative content
AO1 Knowledge and understanding of secondary may include:
• Uses data that already exists
• Collected by someone else
• Can be from another organisation
No further marks can be gained without knowledge and understanding
AO2 Application to market research

Limited application applies knowledge of secondary market research including:
• Cheaper than primary research / outdated / not tailored to business
OR
• Example or some other way of showing good understanding of secondary market research.
Developed application + applies knowledge of secondary market research including
• Cheaper than primary research / outdated / not tailored to business

AND
• Example or some other way of showing good understanding of secondary market research.
Application can be made to DN or any other scenario / context / business / product.

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2(a)(ii) Accept all valid responses.
Exemplars and annotations Marks Rationale
Information that already exists for other purposes 3 An answer which starts with the knowledge of
such as in a newspaper or magazine It saves on secondary, then applies it to market research and
research costs . develops the point in a business context.
Second-hand research such as magazines, online 3 Again, knowledge of secondary, followed by

reports etc. They are not tailored to a specific developed application to market research
business but can establish market trends .
Market research conducted by others , can be out 2 Clear knowledge of secondary. Limited application to
of date and incorrect . market research.
Using research someone else has published . It is 1 Both points show knowledge and understanding of
second-hand research. secondary but there is no application to market
research. Only 1 knowledge mark.
Secondary market research is testing your product 0 This is a primary research method.
with the public
Research from online sources 0 No knowledge / understanding of secondary, without

no other marks can be awarded.

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2(b)(i) Refer to Table 2.1. Calculate the percentage increase in total revenue of online monthly magazines from 2020 to 3
2022.
Indicative content – Responses may include:

Revenue 2020 = 50 Revenue 2022 = 150
Change = 150 − 50 = 100 (1)
Formula: Can be implied
Change / original  100 (1)
(150 – 50) / 50  100 (1)
= 100 / 50  100 = 200% (3)

3 Correct answer Working and % sign do not matter
200% Must be three to denote the three
marks.
2 Both of the following: To award two marks, there must be
• Correct / implied formula • Two and a
AND OR
Correct calculation of the change in total revenue (100)
OR
An incorrect answer with one mistake allowing OFR for final
stage. For example, (150 – 50) / 150  100 = 100 / 150  100
= 66.67% (accept any figure between 66.6 and 67) – 2 marks,
(wrong denominator)
1 One of the following: To award one mark, there must be:
• Correct / implied formula One and two
OR
• Correct calculation of the change in total revenue (100)
0 No creditable content. To award zero marks, there must be

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2(b)(ii) Explain one additional piece of market research data DN would find useful before making the decision to produce 3
QLine.
2 marks
Developed application of one relevant point to a
business context.
1 mark 1 mark
Knowledge of one relevant point is used to answer the question. Limited application of one relevant point to a business
context.
0 marks 0 marks
Indicative content
Knowledge of additional market research may include:
• Customer data
• Customer feedback
• What are forecast trends
• What subscription level are customers prepared to pay
• Information about competitors
• Potential size of the market
AO2 Application
Limited application , applies knowledge to DN once.
Developed application + applies knowledge to DN twice or develops one point
• What potential readers want in a magazine
• Aimed at 18-30 market, so characteristics / requirements of this market
• Other online magazines available, do they charge a subscription fee?
• Plans to stop publishing QNews.

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2(b)(ii) Accept all valid responses.
Exemplars and annotations Mark Rationale
DN can use primary research to ask people about 3 Knowledge of an additional piece of market research in the
their reading habits and interests because DN specific context of DN by using the information in the case
plans to stop publishing QNews it needs to study and develops answer to explain why it is useful.
have accurate information about market trends.
.
Another piece of useful market research would be 3 Although the appears first, it cannot be awarded until the
approximately how many 18-30 year olds has been found. However, there is obvious , so you
have news subscriptions this will allow them to can go back and award the .
anticipate the approximate amount of news
subscriptions they may get from people in the
targeted demographic .
One additional market research data is what 2 Relevant additional data . The context linked to this is
topics their targeted group is interested in this reasonable (subscriptions) , but is not developed.
would allow DN to have a high revenue from
subscriptions .
Find out common interests and trends and 1 Knowledge of additional data, the rest of the answer is not
identifying their target market using the context so (Not Using the Text).
One additional piece of market research DN 0 This is market segmentation not market research so
would find useful is to sell their products in a (not Answering the Question) even though there is context
niche market so they should segment their without knowledge and understanding no other marks
market to 18-30 age group. can be awarded.

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2(c) Analyse two reasons why Shila and Lucy will have to change DN’s objectives. 8
Level AO1 Knowledge and AO2 Application – 2 marks AO3 Analysis

understanding – 2 marks 4 marks
2 3–4 marks
Developed analysis
and / or consequences of two points.

• Knowledge of two • Application of two relevant Limited analysis
relevant points is used to points to a business • Limited analysis that identifies connections
answer the question. context. between causes, impacts and / or
• Knowledge of one • Application of one relevant consequences of two points.
relevant point is used to point to a business • Limited analysis that identifies connections
answer the question. context. between causes, impacts and / or
consequences of one point.

Indicative content
AO1 Knowledge and understanding – Knowledge of two reasons (max 2 s), may include:
• Market conditions
• Importance of objectives
• Relationship between mission statement, aims, objectives and strategy
• SMART objectives
• How change influences objectives
• Relationship of objectives to budget planning

PUBLISHED
2(c) No further marks can be gained without knowledge and understanding.
AO2 Application – Application of knowledge of a reason for DN to change its objectives (max 2 s), including:
Max one for application for the first reason and another for application for the second reason
• Employees concerned about the change.
• Mission statement change
• National revenue data
• Not all employees have the right skills
• Change from daily news reporting to magazine aimed at a young age group
• Impact on local community
AO3 Analysis
Developed analysis – candidate shows two or more links in the chain of analysis or a two-sided analysis.
• Change essential for competition and survival – otherwise firms may make losses / go out of business.
• Communicates the direction of the firm to employees – important as a change impacts employees working practices.
• Will need to change objectives if want growth – as market conditions change.
• Costs of change v benefits
One reason why Shila and Lucy will have to to provide a community This may mean a more national
change DN’s objectives is because of the newspaper for local people readership as opposed to a niche
change from its original mission . focus DN may become more
Annotations for the first impact should be commercially focused to attract
placed in the left-hand margin. advertisers. .
Another reason to change objectives is to Who will subscribe to a monthly It is important that DN makes sure
retain loyal customers product. that customer expectations are met
Annotations for the second impact should and the product maintains quality
be placed in the right-hand margin. to ensure they still gain profits

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2(d) Evaluate the importance to DN of effective supply chain management. 12
Level AO1 Knowledge and AO2 Application – AO3 Analysis – AO4 Evaluation –
understanding – 2 marks 2 marks 2 marks 6 marks
3 5–6 marks
Developed evaluation in
context
• A developed
judgement / conclusion is
made in the business
context.
business context.
Developed knowledge of Developed Developed analysis Developed evaluation
relevant key term(s) and / or application of that identifies • A developed
factor(s) is used to answer relevant point(s) to connections between judgement / conclusion is
the question. the business causes, impacts made.
context. and / or consequences. • Developed evaluative
some key arguments.
Limited knowledge Limited Limited analysis Limited evaluation
of relevant key term(s) application that identifies • A judgement / conclusion is
and / or factor(s) is used to of relevant point(s) connections between made with limited supporting
answer the question. to the business causes, impacts comment / evidence.
context. and / or consequences. • An attempt is made to
balance the arguments.
response.

PUBLISHED

Knowledge of supply chain (max 2 s), may include:
AO1 Knowledge and understanding:
• Supply Chain Management understanding

• The process of creating content
• Managing content
• Delivering content to the consumer
• Customer expectations
• Employee skills
• Suitable content
• Quality issues
• Cost control
AO2 Application
Limited application applies knowledge of effective supply chain management to DN once.
Developed application + applies knowledge of effective supply chain management DN twice.
• content accessible on any device at any time / the magazine content should be available on all devices,
• Through all internet service providers and easily available to subscribers.
• Content suitable for target market (18-30)
• Not easily available to non-subscribers
• Need to keep costs low
• Allow DN to compete in the new market
• Difference between local and national market

PUBLISHED
2(d) AO3 Analysis

• Do current employees have the right skills – to provide appropriate content?

• Can the business survive inefficient management of the supply chain – as costs need to be carefully controlled
throughout the chain?
• Large variation of formats required – will involve many suppliers of different platforms / devices.
• Multiple service providers add additional complexity – which can be challenging to manage.
• Need to provide a quality product – which requires careful monitoring throughout the supply chain.
• Content should be easy to find – how to ensure that this applies to all platforms / devices.
• Employees important part of the supply chain – they have concerns / careful workforce planning required.
AO4 Evaluation
Limited evaluation – unsupported judgement and / or a weak attempt at evaluative comment
Developed evaluation – supported judgement and / or reasonable evaluative comment.
Developed evaluation in context – supported judgement in context and / or reasonable evaluative comment in context.
• A justified recommendation
• Assessment of the decision
• Identification of factors critical in the supply chain
• How to ensure quality – what to compare to / what is quality content
• Is there enough information to implement
• Will revenue outweigh costs
• Require complex negotiations with multiple platforms – do they have the expertise?
• Discussion of further information required.
• Other factors more important e.g., marketing

PUBLISHED
2(d) Exemplars for awarding evaluation
L1 (limited L2 (developed supporting L3 (developed supporting evidence with

supporting evidence) evidence) context)
Effective supply chain Effective supply chain management Effective supply chain management is important to DN
management is is important to DN as it needs to as it needs to deliver content that meets customer
important to DN deliver content that meets customer expectations. The main premise of their product is to
expectations. deliver factual, entertaining and informative news.
Supply chain Supply chain management is not as Supply chain management is not as important as
management is not as important as marketing because marketing because without awareness and advertising
important as marketing. without awareness and advertising there will be a lack of demand. Since Qline will be a
there will be a lack of demand. new online monthly magazine DN will need social
media accounts to promote this product.

BUSINESS 9609/22
1 hour 30 minutes

* 3 0 8 4 6 0 5 4 0 7 *
INSTRUCTIONS
INFORMATION
DC (RW) 316884/2
2
1 Gold Theme Park (GT)
Gold Park was a mine where gold was extracted until 2012. Although there was still some
gold in the mine, the direct costs of extracting it became too high.
The area around Gold Park has become a tourist destination. There has recently been
development of hotels and other accommodation. A new marina complex has also been
built which attracts boat owners to use the local lakes and rivers. 5
Kayo is an entrepreneur who purchased the mine in 2015. She converted the mine into GT,
a theme park where customers can learn about gold mining and have fun. GT now includes
a museum, guided underground tours of the mine and a roller coaster ride around the park.
There is also a restaurant and gift shop.
Kayo employs some of the people who previously worked in the gold mine to work as tour 10
guides in the theme park. She also employs some younger workers, who require training,
as customer service representatives. Kayo believes that developing intrapreneurship is
important to the ongoing success of GT.
Table 1.1 shows some data about GT over the past three years.
Table 1.1 Data about GT 15
2020 2021 2022

Revenue ($m) 3.4 3.2 2.8
Number of employees 54 55 47
Profit ($m) 0.9 0.3 0.2
Number of visitors (m) 0.8 0.8 0.65 20
GT’s Marketing Director has conducted some primary market research to find out why
visitor numbers have fallen. The findings indicate that many potential customers think
the park is not fun and the price of entry is too high. Kayo has now asked the Marketing
Director to conduct some secondary market research to help improve GT.
(a) (i) Identify one type of training. [1]
(ii) Explain the term direct costs (line 2). [3]
(b) (i) Refer to Table 1.1. Calculate the change in GT’s total costs between 2020 and 2022. [3]
(ii) Explain one way to measure the size of GT. [3]
(c) Analyse two possible sources of secondary market research that the Marketing Director
could use to help improve GT. [8]
(d) Evaluate the importance to the ongoing success of GT of developing intrapreneurship. [12]
© UCLES 2023 9609/22/O/N/23

3
2 Bear Bears (BB)
BB is a business partnership owned by Sade and Chika. BB produces personalised teddy

bears (toys) for children.
The toys are made using mass customisation targeted at specific market segments. Each
toy has the same shape and size but it is customised with names and words provided by
the customer. These are hand‑stitched onto the toy and the employees are paid using 5
piece rate. Customers receive their products within a week of ordering.
Each toy is sold for $50 and has a unit contribution of $6. Last month BB sold 4000 units
with a margin of safety of 120 units.
BB currently holds a large amount of inventory in a temperature‑controlled warehouse (see

Table 2.1). 10
Table 2.1 BB’s current inventory
Type of inventory Items

Raw materials 100 kg cotton fabric
300 kg synthetic fibre (filling)
Work in progress 300 non‑customised toys 15
Finished products None
Sade thinks that BB should adopt a just in time (JIT) approach to inventory management.
However, Chika is concerned about the possible impact on BB.
The stitching department is managed by Chika. She has recently received a complaint
from David who is the only male employee in the stitching department (see Fig. 2.1). 20
I feel that I am being discriminated against because I am a man. There are no washroom
facilities for me on the ground floor but there are for the women. I have to go up two
floors for a washroom which takes me a lot of time.
I am given all the tasks which require heavy lifting. I am often asked to fix problems with
other people’s stitching machines, and this slows my production. 25
I earn less money than anyone else in the stitching department.
Fig. 2.1 Complaint from David in the stitching department
After some further investigation, Chika believes there needs to be increased equality in the
stitching department.
(a) (i) Identify one method of market segmentation. [1]
(ii) Explain the term mass customisation (line 3). [3]
(b) (i) Calculate BB’s fixed costs last month. [3]
(ii) Explain one limitation for BB of using break‑even analysis. [3]
(c) Analyse two possible impacts on BB of adopting a just in time (JIT) approach to inventory
management. [8]
(d) Evaluate the most likely impact on BB of increased equality in its stitching department. [12]
© UCLES 2023 9609/22/O/N/23
BUSINESS 9609/22
MARK SCHEME
Maximum Mark: 60
Published
Teachers.
components.

PUBLISHED
marking principles.
descriptors.

PUBLISHED

PUBLISHED

shows confusion.
wrongly.)


PUBLISHED
for each answer
stages.
4 Annotation:

PUBLISHED
appropriate.
• L1, L2 etc. must be clearly annotated on the response at the point where the level is achieved.

AO2 Application
AO3 Analysis
AO4 Evaluation

PUBLISHED
Annotations
Proposed
To award Comment
annotation
For objective points that are right or wrong.

Correct
For objective points that are wrong.

Incorrect
When there is a misunderstanding in a response.

Unclear
When the candidate has attempted something, but

Too Vague
the mark/skill has not been awarded.
Highlighter To highlight a point or section of an answer that

justifies the mark/annotation.
Highlight Or
Underline
Benefit of When the candidate has attempted something, and

doubt the mark/skill has been awarded.
On page On page Rarely used in live marking.

comment comment
Not using When the context has not been used.

text
To show a page/section has been seen/read.

Seen
Not When the response is not focussed on answering

answering the question.
question

PUBLISHED
Proposed
To award Comment
annotation
The repetition of a previous point in a response

Repetition Or
Candidate is copying the case study/data.
Own figure The own figure rule applies – acts as a mark/tick.

rule
Knowledge When AO1 has been awarded.

(AO1) L1 Number of Ks should match the mark awarded.
Knowledge
(AO1) L2
Application When AO2 has been awarded.

(AO2) L1 Number of APPs should match the mark awarded.
Application
(AO2) L2
Analysis When AO3 at Level 1 has been awarded.

(AO3) L1
Analysis When AO3 at Level 2 has been awarded.

(AO3) L2
Evaluation When AO4 at Level 1 has been awarded.

(AO4) L1

(AO4) L2

(AO4) L3

PUBLISHED
1(a)(i) Identify one type of training. 1
Indicative content.
Identification of a type of training:
• Induction
• On-the-job
• Off-the-job
Only accept these responses

PUBLISHED
1(a)(ii) Explain the term ‘direct costs’.

1 mark 2 marks
2 marks
context.
1 mark 1 mark
question. context.
0 marks 0 marks
Indicative content
Knowledge of direct cost(s) may include:
• Costs that are directly related to the production process.
• Costs that are directly attributed to operations/a cost centre.
AO2 Application
Limited application applies knowledge of direct to business costs, including:

• Amounts/things that are payable by a business / incurred by a business
OR
• Example or some other way of showing good understanding of a direct cost.
Developed application + applies knowledge of direct to business costs, including

• Amounts/things that are payable by a business / incurred by a business
AND
• Example or some other way of showing good understanding of a direct cost.

PUBLISHED
1(a)(ii)
Costs which are linked to the operations of a business 3 An answer which starts with the knowledge and then
. For example, a gold mine would need to pay applies it to costs with an example.
the miners who extract the gold .
Something a business pays to make a product or 3 APP cannot be awarded without K, but once the K has
service , such as raw materials . been awarded you can go back and reward the APP.
Any example (it does not need to come from the data)
can be used.
Paid by a business , to produce a service . The 3 One of the APPs can come from further explanation it
opposite of indirect costs which are not linked to does not have to be an example.
production .
Costs that are directly related to the production 2 No application of costs, so max 2 marks.
process such as wages .
Costs that can be attributed to a specific cost centre 2 Knowledge of the direct element with good
unlike indirect costs which cannot . An example understanding. The example is fine, but no
of a direct cost for GT are the wages of the tour understanding of costs.
guides.
Production costs . 1 Simple knowledge of the direct element.
Costs which are directly accountable to a cost object 1 Knowledge of the direct element – ignore anything
such as the marketing of GT. that is incorrect. No negative marking.
The things a business has to pay . For example, a 0 Although there is some attempt at application, these
business may need to pay wages and advertising . marks cannot be awarded without knowledge.
Direct costs are the same as variable costs . 0 Variable costs share some characteristics with direct
costs, but they are not the same.

PUBLISHED
1(b)(i) Refer to Table 1.1. Calculate the change in GT’s total costs between 2020 and 2022. 3
Indicative content.
• Formula: total costs = total revenue – profit (1)
• Calculation of cost in either 2020 or 2022 (1)
– Costs in 2020: $3.4m – $0.9m = $2.5m
– Costs in 2022: $2.8m – 0.2m = $2.6m
• Change in costs: $2.6m – $2.5m = $0.1m (1 OFR)
Answer = $0.1m (3)

Accept answer as a percentage 4% (with % sign) as full marks
Exemplar and annotations
Marks
3 marks Correct answer Working and $ do not matter.

$0.1m or 4% allow 0.1 If presented as a percentage, then %
sign must be included for full marks
allow OR clear and correct working shown.
(0.1 / 2.5)  100 = 4 (obviously meant Must be three to denote the
as a percentage) three marks.
2 marks Two of the following: To award two marks, there must be

• Correct formula • Two and a
• Correct calculation of TC for 2020 OR
(2.5)
• Correct calculation of TC for 2022
(2.6)
OR
An incorrect answer with one mistake
allowing OFR for final stage.

PUBLISHED
1(b)(i)
Marks
1 mark One of the following: To award one mark, there must be:
• Correct formula • One and two
(2.5)
(2.6)
0 marks No creditable content. To award zero marks, there must be

• One

PUBLISHED
1(b)(ii) Explain one way to measure the size of GT. 3

1 mark 2 marks
2 marks
context.
1 mark 1 mark
question. context.
0 marks 0 marks
Indicative content
• Knowledge of an appropriate way to measure the size of a business; revenue, number of outlets, number of
employees, market share, number of customers, market capitalisation capital employed, area/space etc.
Do not allow profit – which is a measure of success or performance, but not size.
AO2 Application
Limited application , applies knowledge to GT once.
Developed application + applies knowledge to GT twice OR through the calculation or comparison of data (eg a
percentage change).

PUBLISHED
1(b)(ii) • Use of data related to GT to show the size of the business (this data can be used more than once)
2020 2021 2022
Sales revenue ($m) 3.4 3.2 2.8
Number of 54 55 47
employees
Profit ($m) 0.9 0.3 0.2
Number of visitors 0.8 0.8 0.65

(m)
• GT includes a museum, tours, a roller coaster, restaurant, and gift shop
• Some employees previously worked in the gold mine
• Some employees are tour guides and customer service representatives
Number of employees , in 2020 GT had 54 3 Number of employees is a way to measure size and
employees but this decreased to 46 in 2022 . the use of two data points shows developed
application.
The size of GT can be measured by revenue . GT’s 3 Revenue is a way to measure size and the candidate
revenue decreased by 17.65% . has used two pieces of data (revenue for 2020 and
revenue for 2022) to come to a correct calculation.
It may be necessary to check calculations and allow
for correct rounding.
GT has got smaller since its visitors have 3 Visitors (customers) is a way to measure size and the
decreased to 0.65m . use of two data points for developed application.

PUBLISHED
1(b)(ii)
GT has gotten smaller, since their revenue has 3 Revenue is a way to measure size and the use of two
fallen to $2.8m and its visitors have also fallen to data points for developed application.
0.65m .
As a theme park, visitor numbers are an important 3 Visitors is a way to measure size. The context of a
way to measure size, which has fallen to 0.65m in theme park is limited application (go back and award
2022 . after the K has been awarded) with a use of the data
from Table 1.1 to develop this application.
Number of employees has decreased to 46 in 3 Only limited application through the use of one data
2022 . point. It is not enough to state that it has ‘decreased’ –
the figures must be used.
The number of people that GT employs , such as 2 Application does not need to come from the data in
the customer service operatives . Table 1.1.
The number of visitors is really important because 1 No specific context used in this answer.
the more visitors GT has, the more revenue it is likely
to generate and the bigger its profit. This all stems
from the visitors who are the customers of GT and
therefore the most important way to measure the size
of GT .
The size of GT can be measured by the number of 1 AO1 knowledge does not need to be in context, so
factories it has. The more factories the more it can can be awarded, even if the answer does not match
produce. the context.
A big business is likely to have more power in the 0 No valid way to measure the size of the business.
market and can dominate the competition .

PUBLISHED
1(c) Analyse two possible sources of secondary market research that the Marketing Director could use to help improve 8
GT.
AO1 Knowledge and

AO2 Application AO3 Analysis
Level understanding
2 marks 4 marks
2 marks
2 3–4 marks
Developed analysis
• Developed analysis that
identifies connections between
causes, impacts and/or
consequences of two points.

points is used to answer the points to a business context. • Limited analysis that identifies
question. • Application of one relevant connections between causes,
• Knowledge of one relevant point to a business context. impacts and/or consequences
point is used to answer the of two points.
question. • Limited analysis that identifies
connections between causes,
impacts and/or consequences
of one point.

Annotate the first source in the left-hand margin and the second source in the right-hand margin.

PUBLISHED
1(c) Indicative content:

Knowledge of sources of secondary market research (max 2 s), include;
• journal articles
• textbooks
• dictionaries and encyclopaedias
• books
• newspapers and magazines
• accounts and reports
• previous sales/internal data
• competitor data
• Data collected by other businesses
• Feedback found on media / other sources – do not accept ‘internet’ unless the source is clear or other named internet
source.
AO2 Application
Max one for application in the first source and max one for application in the second source, including;
• Link to leisure markets, such as days out and entertainment.
• Link to specific competitors, such as other days out, services, museums.
• Link to elements specific to GT, such as:
– converted mine / gold mine
– guided tours
– roller coaster rides
– entry prices of similar services
– need to reduce price
– need to make GT more fun.

PUBLISHED
1(c) AO3 Analysis

Analysis may be of the cost and/or benefit and/or risk of the source of market research to GT.
Costs may include:
• Monetary cost of research – may affect the profitability of GT.
• Time cost of research – opportunity cost of time spent on other activities.
Benefits may include:
• Understanding of the market to increase in visitor numbers – increased sales revenue.
• Relatively lower cost than more primary market research – increased profit.
Risk may include:
• Use of secondary research to find out more about the market and potential visitors – to increase sales revenue/profit.
Newspapers . To spot trends in what people like Which can help GT increase their
when visiting roller coasters in the sales revenue by selling more
theme park. tickets and make a greater profit .
Competitors websites To see what their prices are because So GT can set a better price for their
some customers think GT’s prices are tickets and increase customer
too high . satisfaction however the data
might be outdated .

PUBLISHED
1(d) Evaluate the importance to the ongoing success of GT of developing intrapreneurship. 12
Level AO1 Knowledge AO2 Application AO3 Analysis AO4 Evaluation

and understanding 2 marks 2 marks 6 marks
2 marks
3 5–6 marks
• A developed judgement/conclusion
is made in the business context.
• Developed evaluative comments
which balance some key arguments

Developed Developed Developed analysis Developed evaluation
knowledge of application of that identifies • A developed judgement/conclusion
relevant key term(s) relevant point(s) to connections is made.
and/or factor(s) is the business between causes, • Developed evaluative comments
used to answer the context. impacts and/or which balance some key arguments.
question. consequences.

of relevant key of relevant point(s) that identifies • A judgement/conclusion is made
term(s) and/or to the business connections with limited supporting
factor(s) is used to context. between causes, comment/evidence.
answer the question. impacts and/or • An attempt is made to balance the
consequences. arguments.

No creditable No creditable No creditable No creditable response.
response. response. response.

PUBLISHED

Knowledge of intrapreneurship (max 2 s), including:
• Intrapreneurship is where the workers come up with innovative ideas using enterprise to increase the profitability of the
business. The business may reward the intrapreneur for their ideas.
• Allows employees to act like entrepreneurs / introduce enterprise within the business (employed).
• The qualities of intrapreneurship, including; passion, talent, curiosity, motivation, resourcefulness, networking,
confidence, knowledge and experience.
• the role of intrapreneurship, including: problem solving, idea generation, identify opportunities, overcome threats,
empowerment.
AO2 Application
Limited application applies knowledge of intrapreneurship to GT once.
Developed application + applies knowledge of intrapreneurship to GT twice.
• Link to leisure markets, such as days out and entertainment.
• Link to elements specific to GT’s intrapreneurship, such as:
– some employees used to work in the gold mine – good knowledge about the theme of GT
– some employees are younger workers on flexible contracts
– falling sales ($3.4m in 2020 to $2.8m in 2022 – 17.65% fall)
– fewer employees in 2022 than 2021 – loss of intrapreneurship skills
– falling profit ($0.9m in 2020 to $0.2m in 2022 – 77.78% fall) – link to ability to fund ideas
– fall in visitors due to; not fun, too high prices.
AO3 Analysis
Advantages of intrapreneurship to GT may include:
• Using GT’s own resources to find solutions to their falling visitor numbers may be cheaper than external management
consultants – lower GT’s cost and increase profit.
• GT workers may provide better / more effective solutions to GT’s problems – more likely to increase visitor numbers.
• Use of the mine’s previous employees for their intrapreneurial ideas may be more likely to improve the business –
increase visitor numbers.
• Asking for employee involvement may increase the motivation of the staff – increased productivity/sales revenue,

PUBLISHED
1(d) Disadvantages of intrapreneurship to GT may include:

• GT’s employees (especially the younger workers on flexible contracts) may not have the experience and/or knowledge
to help GT increase visitor numbers – opportunity cost of spending time on tasks other than their main function.
• GT’s employees may not provide adequate solutions which may not increase visitor numbers – GT may make a loss in
the future.
• GT needs a quick solution (because profit is likely to become loss in the near future) and intrapreneurship may not
provide this – visitor numbers may not increase leading to GT making a loss or not surviving.
• GT already has two possible solutions (lower price and increase fun of the park), so a focus on intrapreneurial ideas
may waste time – opportunity cost.
AO4 Evaluation
Developed evaluation in context – supported judgement in context and/or reasonable evaluative comment in context.
• A judgement about the likely role of intrapreneurship in the ongoing success of GT.
• What the judgement might depend upon; the timeframe that GT must find a solution to their falling visitor numbers, the
ability/skill of GT’s workers, the ability/skill of Kayo to utilise the intrapreneurial skills of GT’s employees, the validity of
GT’s previous primary market research, the findings of the secondary market research etc.
• Weighing up of the arguments for the role of intrapreneurship to the ongoing success of GT.

PUBLISHED
1(d) Exemplars for awarding evaluation
L1 (limited supporting L2 (developed supporting L3 (developed supporting

evidence) evidence) evidence with context)
Intrapreneurship is very important to Intrapreneurship is very important to Intrapreneurship is very important to

the success of GT. the success of GT because it gives the success of GT because it gives
the business new innovative ideas. the business new innovative ideas for
roller coasters.
Intrapreneurship is not as important Intrapreneurship is not as important Intrapreneurship is not as important

as finance. as finance because without enough as finance because without enough
money a theme park will not survive. money a theme park will not survive
against all of the other leisure
businesses in the market.
It depends on how good the It depends on how good the It depends on how good the
intrapreneurs are. intrapreneurs are. If they come up intrapreneurs are. If they come up
with innovative ideas, then it is with innovative ideas about how to
important. better use the gold mine, then it is
important.
In the short term it is, but in the long In the short term it is to bring in new In the short term it is to bring in new
term it is not. ideas for the theme park, but in the ideas for the theme park, but in the
long term having the right price may long term reducing the price that is too
be more important. high may be more important.

PUBLISHED
2(a)(i) Identify one method of market segmentation. 1
Indicative content
Methods of market segmentation:

• geographic
• demographic
• psychographic/behavioural
Only accept these responses

PUBLISHED
2(a)(ii) Explain the term ‘mass customisation’. 3

1 mark 2 marks
2 marks
context.
1 mark 1 mark
question. context.
0 marks 0 marks
Indicative content
Knowledge of mass customisation may include:
• A production process where some elements can be changed to meet customer needs.
AO2 Application
Limited application applies knowledge of customisation to mass production, including:
• A process to customise whilst producing large amounts of similar products/flow production.
OR
• Example or some other way of showing good understanding.
Developed application + applies knowledge of customisation to mass production, including:

• A process to customise whilst producing large amounts of similar products/flow production.
AND
• Example or some other way of showing good understanding.

PUBLISHED
2(a)(ii)
Products which are changed based on customer 3 An answer which starts with the knowledge and then
preferences , but still produced in large numbers applies it to the mass element with an example.
for example T-Shirts with different designs .
Mass customisation usually capital intensive 3 APP cannot be awarded without K, but once the K has
production by using IT systems to make slightly been awarded you can go back and reward the APP.
different products ,on a production line . Production line/assembly line/flow production is all fine
for APP.
Products can be changed slightly such as a car 2 Knowledge and an example.

with different features .
Products which can be adapted to meet the differing 1 Simple knowledge of the direct element.
needs of customers .
Large scale production with capital intensive 0 Although there is some attempt at application, these
operations . For example, a T-Shirt with different marks cannot be awarded without knowledge.
designs .

PUBLISHED
2(b)(i) Calculate BB’s fixed costs last month. 3
Indicative content
• Formula:
break even point  contribution = fixed costs (1)
OR
total costs – (total) variable costs (1)
• Break even point = 4000 – 120 = 3880 units (1)
• 3880  $6 = $23 280 (1 OFR applies)
Answer = $23 280 (3)
3 marks Correct answer Working and $ do not matter.

$23 280 Must be three to denote the three marks.
2 marks Both of the following: To award two marks, there must be

• Correct calculation of break even point OR
(3880).
OR
An incorrect answer with one mistake allowing
OFR for break even point.
OR
An answer of $24 000 (including working of $6 X
4000 units – or any other appropriate working)

PUBLISHED
2(b)(i)
• Correct calculation of break even point
(3880).

• One

PUBLISHED
2(b)(ii) Explain one limitation for BB of using break-even analysis. 3

1 mark 2 marks
2 marks
context.
1 mark 1 mark
question. context.
0 marks 0 marks
Indicative content

Knowledge of a limitation of using break-even analysis , including:
• Fixed costs may not be constant – may change in long run
• Assumption that output equals sales
• Assumption that unit variable costs remain constant at all output levels
• Assumption that price will remain constant at all output levels
• Only useful for individual (or limited number of) product lines
• Does not take into account external changes (social, legal, economic, political, technological) or qualitative data
• Only a forecast/estimate.

PUBLISHED
2(b)(ii) AO2 Application

Limited application , applies knowledge to BB once.
Developed application + applies knowledge to BB twice.
Application of a factor may include:
• Each bear is sold for $50 with a contribution of $6
• Margin of safety last month was 120 units
• Break-even point last month was 3880 (OFR based on Q2bi)
• Personalised products – unlikely to have the same variable costs (although piece rate payment may make this
possible)
• Proposed JIT may make former break-even analysis irrelevant
• Information from Table 2.1, such as the quantity and type of materials used.
Break-even analysis assumes that fixed costs do not 3 Knowledge of a limitation with two pieces of context
change . BBs fixed costs were $23 280 last applied.
month, however this is likely to change if they
introduce JIT .
BB is considering introducing greater equality , 3 The APP cannot be awarded until there is knowledge,
which may increase the costs and the price may need however you can go back and annotate it.
to increase from $50 which makes the break even
calculations irrelevant .
The variable costs of BB may not be constant 2 Knowledge and one piece of context.
which could mean that the margin of safety will fall
from 120 units .
Break even analysis assumes all output produced is 1 Knowledge and no application to the context.
sold .

PUBLISHED
2(b)(ii)
Break even analysis is a way of calculating the 0 Although there is some relevant context, there is no
quantity needed to stop making a loss and start knowledge of a limitation, so no marks can be
making a profit. This is useful to BB because they can awarded.
calculate how many teddy bears need to be sold to
cover all of the costs, including the $6 unit
contribution.

PUBLISHED
2(c) Analyse two possible impacts on BB of adopting a just in time (JIT) approach to inventory management. 8

2 marks
2 3–4 marks
Developed analysis
consequences of two points.

points is used to answer the points to a business context. • Limited analysis that identifies
question. • Application of one relevant connections between causes,
• Knowledge of one relevant point to a business context. impacts and/or consequences
point is used to answer the of two points.
question. • Limited analysis that identifies
connections between causes,
impacts and/or consequences
of one point.

Annotate the first impact in the left-hand margin and the second impact in the right-hand margin.

PUBLISHED
2(c) Indicative content

Impacts of just in time (JIT) (max 2 s), including:
• Less space needed
• Waste reduction
• Shorter lead times
• Prevents over-production
• Reduces capital tied up in inventory control
• May run out of inventory – may require good relationship with supplier
• May lead to delays
• Requires planning/forecasting
• May not be able to respond to changes in demand
• May lead to idle resources.
AO2 Application
Max one for application in the first impact and max one for application in the second impact, including;
• Personalised product (toys) using mass customisation.
• One week lead time to customers.
• BB has low margin of safety (120 units last month).
• Currently holds a large amount of inventory in raw materials (400kgs) and work in progress (300 un-customised toys).
• No finished products being held (probably due to customisation and lead time).
• Inventory held in a temperature-controlled warehouse.
AO3 Analysis
• Less space needed; reduction in storage costs – no need for warehouse which could reduce the fixed costs – improve
margin of safety – increased profitability. However, may increase need for deliveries and variable costs of production.
• Waste reduction; lower costs – higher profit margin.
• Reduces capital tied up in inventory control; may facilitate sale of warehouse which can free-up capital to be used
elsewhere in the business – facilitate expansion. However, the increased costs of more deliveries, supplier relations
may increase variable/direct costs significantly.

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2(c) Less capital tied up in stock which may improve BB’s working capital position. However, costs may increase.
• May run out of inventory; which may increase the lead time for customer order – increase customer dissatisfaction,
reduce sales, profits. May lead to BB making a loss since BB is close to break even.
• Requires planning/forecasting; to enable BB to run without a stock of raw materials and work in progress.
• May lead to idle resources; employees being idle – increased costs, reduced productivity.
Reduces the need for inventory to be In the temperature-controlled Which means that BB can sell the
stored . warehouse . warehouse and use the spare
capital to expand production .
Could lead to delays in fulfilling Which might make it difficult to get Which might lead to a reduction in
customer orders . customers their order within a week sales revenue for BB and reduce
. the profitability of the firm .

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2(d) Evaluate the most likely impact on BB of increased equality in its stitching department. 12
Level AO1 Knowledge AO2 Application AO3 Analysis AO4 Evaluation

and understanding 2 marks 2 marks 6 marks
2 marks
3 5–6 marks
• A developed judgement/conclusion
is made in the business context.
• Developed evaluative comments
which balance some key arguments

Developed Developed Developed analysis Developed evaluation
knowledge of application of that identifies • A developed judgement/conclusion
relevant key term(s) relevant point(s) to connections is made.
and/or factor(s) is the business between causes, • Developed evaluative comments
used to answer the context. impacts and/or which balance some key arguments.
question. consequences.

of relevant key of relevant point(s) that identifies • A judgement/conclusion is made
term(s) and/or to the business connections with limited supporting
factor(s) is used to context. between causes, comment/evidence.
answer the question. impacts and/or • An attempt is made to balance the
consequences. arguments.

No creditable No creditable No creditable No creditable response.
response. response. response.

PUBLISHED

Knowledge of equality (max 2 s), including:
• Equality in the workplace means equal job opportunities and fairness for employees and job applicants.
• Equality means that a business must not treat people unfairly because of protected characteristics. For example,
because of sex, age, race, religion, culture – allow any acceptable protected characteristic.
• Equality means having an inclusive and fair working environment.
AO2 Application
Limited application applies knowledge of equality to BB once.
Developed application + applies knowledge of equality to BB twice.
• Personalised products (toys) using mass customisation – stitching (where David works) department does the
customisation.
• Employees paid using piece rate.
• David is only man in stitching department – possible inequality in recruitment process.
• Stitching employees
• Lack of male washroom facilities on ground floor.
• David given tasks which require heavy lifting.
• David asked to fix problems with machines – limits his ability to earn (piece rate).
AO3 Analysis
Positive impacts, including:
• BB may gain a reputation as a better employer which may improve their recruitment – reduce business costs of
recruitment and/or lead to better employees.
• Owners may avoid being sued for discrimination in the workplace (unlimited liability) by an employee.
• May increase motivation of the current workers which could increase productivity – decrease sales, increase
profitability.
• May improve the quality of the work which could allow BB to increase prices – increased profitability.

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2(d) Negative impacts, including:

• Costs of increasing equality, including:
– cost of recruiting more men to the stitching department
– cost of building a men’s washroom on the ground floor
– costs of retraining other employees to fix machines
– costs of employing someone / training someone to do the heavy lifting and/or capital expense of equipment to do
this.
• If BB admit to inequality in the stitching department (by improving it) then they may be open to allegations of
discrimination – legal issues, poor reputation, customer reaction.
• Possibility that other departments/groups in BB will demand equality.
AO4 Evaluation
• A judgement over the most likely/important impacts of increased equality in the stitching department.
• What the judgement might depend upon, including; the legal rights/responsibilities of businesses in BB’s home country,
the legitimacy/accuracy of David’s claims about inequality in the stitching department, the level of equality in the other
departments of BB, other HRM/operational issues facing BB.
• Weighing up of the relevant impacts of increased equality in the stitching department.
Exemplars for awarding evaluation

L1 (limited supporting L2 (developed supporting L3 (developed supporting
A decrease to BB’s public image is A decrease to BB’s public image is A decrease to BB’s public image is
the most likely impact. the most likely impact because it the most likely impact because they
needs to maintain its revenue which is rely on customised customer orders to
essential to survive. maintain its revenue which is essential
to survive.

PUBLISHED
2(d) L2 (developed supporting

L1 (limited supporting L3 (developed supporting
Motivation will have the biggest Motivation will have the biggest Motivation will have the biggest
impact impact because the employees will impact because BB uses mass
have a big effect on the amount of customisation so the they will have a
products that can be produced, big effect on the amount of products
limiting the output. produced, limiting the output,
The most important impact will be The most important impact will be The most important impact will be
lower labour turnover. lower labour turnover because BB’s lower labour turnover because BB’s
business model relies on employing business model relies on employing
people, some of whom are not happy people in the factory, some of whom
at the moment. are not happy at the moment, like
David who is the only male in
department.
All of this may depend upon what the All of this may depend upon whether All of this may depend upon whether
owners want. the owners care about happiness of the owners care about happiness of
all their employees or just see them all their employees, including David
as a cost burden on BB. the only male in department, or just
see them as a cost burden on BB.
It will be different in the short term, In the short term, equality will have a In the short term, equality will have a
compared with the long term. negative impact due to the increased negative impact due to the increased
costs incurred by BB, but in the long costs incurred by BB of building a new
term it will have a beneficial impact bathroom, but in the long term it will
because labour turnover will have a beneficial impact because
decrease. labour turnover will decrease.
Some stakeholders will see it as a Employees may see it as a positive Employees may see it as a positive
positive impact. impact because they are getting equal impact because they are getting equal
rights, which might lead to better pay rights, which might lead to David
for some and make them feel more getting equal access to a bathroom
secure in their job. and not have to do all of the
traditionally ‘male’ job roles.

BUSINESS 9609/23
1 hour 30 minutes

* 3 8 8 4 4 1 8 6 4 3 *
INSTRUCTIONS
INFORMATION
DC (LK/FC) 316885/2
2
1 Jake’s Cakes (JC)
Jake started baking cakes while at university. He baked cakes for friends’ birthdays and
other celebrations. He posted pictures of his cakes on social media sites where they
received very positive feedback and were widely shared.
In 2021 Jake started JC, a small business, using his parents’ kitchen. JC bakes cakes
and sells them online. Jake created a website where customers design and order unique 5
cakes. Jake uses digital promotion as the main method of promoting his products. JC has
only used retained earnings to invest in marketing and new equipment.
In 2023, Jake made a cake for a celebrity who shared JC’s social media posts with their
social media followers. As a result of this an investor approached Jake. The investor offered
to provide a $25 000 capital investment to help Jake grow the business. However, Jake 10
does not want to take on an equal partner.
Jake is considering a different plan for growth. His parents have agreed to let him convert
their garage into his commercial kitchen. He has prepared a business plan and applied for
a bank loan of $15 000 to finance this growth. He has produced a cash flow forecast for the
first quarter of 2024. 15
Table 1.1: JC’s cash flow forecast 2024 ($ 000)
Jan Feb March

Cash inflow
Bank loan 15 0 0
Cash sales 2.5 2.6 5 20
Total inflow 17.5 2.6 5
Cash outflow
Fixed costs 20 1.5 1.5
Variable costs 0.5 0.6 0.8
Total outflow 20.5 2.1 2.3 25
Net cash flow (3) 0.5
Opening balance 2 (1)
Closing balance (1) (0.5)
(a) (i) Identify one element of a business plan. [1]
(ii) Explain the term variable costs. [3]
(b) (i) Refer to Table 1.1. Calculate the forecast closing balance in March 2024. [3]
(ii) Explain one of Jake’s human needs that may be satisfied by operating JC. [3]
(c) Analyse two benefits to JC of using digital promotion. [8]
(d) Evaluate whether a bank loan is the most appropriate source of finance for JC’s growth. [12]
© UCLES 2023 9609/23/O/N/23

3
2 Custom motorcycles (CM)
CM is a private limited company. It was set up by Joyce, who identified a gap in the market
for specialist motorcycle components. CM’s engineers make the components using job
production. The engineers are highly skilled, trained and motivated and very proud of their
high-quality products which are sold using price skimming.
CM was featured in a popular motorcycle magazine in autumn 2022, which has increased 5
CM’s reputation for quality unique products. This led to an increase in CM’s sales as shown
in Fig. 2.1.
7.5
6 6.25
5.5
5
1.05 1.5
0.5 0.6 1
Summer 2022 Autumn 2022 Winter 2022 Spring 2023 Summer 2023
Total market sales (000 units) CM sales (000 units)
Fig. 2.1: CM’s sales data 2022–2023
Lead times for CM’s products have increased from 4 weeks to 10 weeks. This has put
additional pressure onto CM’s engineers, who are salaried employees. They often have to 10
work evenings and weekends.
Harry, the Sales Manager, thinks demand is going to continue to increase. He wants CM to
employ more skilled engineers and continue to use job production. However, Joyce wants
CM to invest in new technology and change from using job production to batch production.
(a) (i) Identify one non-financial motivator. [1]
(ii) Explain the term demand. [3]
(b) (i) Refer to Fig. 2.1. Calculate the total market growth between summer 2022 and summer
2023. [3]
(ii) Explain one benefit to CM of using price skimming. [3]
(c) Analyse two impacts on CM of its employees having a poor work-life balance. [8]
(d) Evaluate whether CM should change its method of production. [12]
© UCLES 2023 9609/23/O/N/23

BUSINESS 9609/23
MARK SCHEME
Maximum Mark: 60
Published
Teachers.
components.

PUBLISHED
marking principles.
descriptors.

PUBLISHED

PUBLISHED

shows confusion.
wrongly.)


PUBLISHED
for each answer
stages.
4 Annotation:

PUBLISHED
appropriate.
• L1, L2, etc. must be clearly annotated on the response at the point where the level is achieved.

AO2 Application
AO3 Analysis
AO4 Evaluation

PUBLISHED
Annotations

annotation
Correct For objective points that are right or wrong.
Incorrect For objective points that are wrong.
Unclear When there is a misunderstanding in a response.
Too Vague When the candidate has attempted something, but the mark/skill has
not been awarded.
Highlight Highlighter To highlight a point or section of an answer that justifies the

Or mark/annotation.
Underline
Benefit of doubt When the candidate has attempted something, and the mark/skill
has been awarded.
On page comment On page Rarely used in live marking.

comment Very useful for practice scripts.
To communicate with the supervisor.
Not using text When the context has not been used.
Seen To show a page/section has been seen/read.
Not answering When the response is not focussed on answering the question.
question
Repetition The repetition of a previous point in a response

Or
Candidate is copying the case study/data.

PUBLISHED
annotation
Own figure rule The own figure rule applies – acts as a mark/tick.
Knowledge (AO1) L1 When AO1 has been awarded.

Number of Ks should match the mark awarded.
Knowledge (AO1) L2
Application (AO2) L1 When AO2 has been awarded.

Number of APPs should match the mark awarded.
Application (AO2) L2

PUBLISHED
1(a)(i) Identify one element of a business plan. 1
Identification of a business plan element may include: ( )
• executive summary
• business objectives
• description of the business opportunity
• marketing and sales strategy
• management team and personnel
• operations
• financial forecasts

PUBLISHED
1(a)(ii) Explain the term variable costs. 3

1 mark 2 marks
2 marks
1 mark 1 mark
the question.
0 marks 0 marks
Indicative content:

Knowledge of variable costs may include:
• Costs that vary with output
AO2 Application
Limited application applies knowledge of variable costs to one of the factors:
Developed application + applies knowledge of variable costs to two of the factors

• Any relevant example e.g. raw materials, packaging
• Increase or decrease with the production volume
• Increase or decrease with the sales volume
Application can be made to the source material or any other scenario/context/business/person

PUBLISHED
1(a)(ii)
Expenses that change with the level of output such as raw 3 There is developed application of raw
materials for example the flour used for cakes. materials (flour) as well as clear knowledge
of the concept at the start of the response.
Expenses that change with the level of output such as raw 2 Knowledge first, followed by application to
materials . an example
Expenses which vary with output . 1 Knowledge mark. No attempt to apply.
Expenses which do not stay the same 0 No link to output

PUBLISHED
1(b)(i) Refer to Table 1.1. Calculate the forecast closing balance in March 2024. 3
Indicative content:
Calculation Value 3 marks
Net cash flow Total cash in − Total cash out 2.7 1 mark
Opening balance Closing balance (Feb) (0.5) 1 mark
Closing balance Net cash flow + Opening balance 2.2 1 mark (or )3
OFR applies ONLY if calculation is explicit and correct data values used in calculation
Marks
3 marks Correct answer (3) Working is not required.
Must be three to denote the three marks.

2 marks EITHER To award two marks, there must be
• Correct formula AND • Two and a
• Correct identification of figures OR
OR • One , one and one

• An incorrect answer with one mistake allowing OFR for
final stage.
• Correct identification of figures in an incorrect formula
• One

PUBLISHED
1(b)(ii) Explain one of Jake’s human needs that may be satisfied by operating JC. 3

1 mark 2 marks
2 marks
1 mark 1 mark
the question.
0 marks 0 marks
Indicative content:
Knowledge of a factor that may satisy a human need
• Social connections
• Challenge
• Significance
• Certainty
• Maslow’s hierarchy of needs
AO2 Application
Limited application , applies knowledge of one factor that satisfies Jakes needs once.
Developed application + applies knowledge of one factor that satisfies Jakes needs twice.
• via followers on social media
• unique cakes
• creating customer designed unique cakes/orders
• sole business owner/sole trader/owns 100% of business
• of praise from local celebrity (sharing JC social media posts
• garage conversion plan
• he is an entrepreneur

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1(b)(ii)
Social connections via followers on social media 3 Knowledge plus two specific elements from
increases pride in bakery the case study
The challenge of creating customer designed unique 2 A challenge is a human need with specific
cakes/orders reference to the case material once
Esteem needs 1 One of Maslow’s Needs identified only
Hygiene factors 0 Incorrect theory

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1(c) Analyse two benefits to JC of using digital promotion. 8

understanding
2 marks 2 marks 4 marks
2 3–4 marks
Developed analysis
of two points.
of one point.

to answer the question. business context. between causes, impacts and/or consequences
• Knowledge of one • Application of one of two points.
relevant point is used to relevant point to a • Limited analysis that identifies connections
answer the question. business context. between causes, impacts and/or consequences
of one point.


PUBLISHED

• Digital promotion: the use of advertising, sales promotion, personal selling, direct mail, trade fairs, sponsorship and
public relations online
• Methods of digital promotion (without reference to JC) e.g. Twitter, hashtags, Facebook, YouTube
Knowledge of the benefits of using digital promotion (max 2 ), may include:

• wide customer reach
• inform consumers and persuade them to buy.
• promotional objectives:
− increased sales/awareness;
− demonstrating abilities/showcasing products
• creating or reinforcing a brand image
• correcting misleading reports
• cheaper than non-digital promotion

PUBLISHED
1(c) AO2 Application
Max one for application to each benefit of using digital promotion.
• Jakes uses social media as a source of digital promotion

• Use of website to enable customers to design and order cakes
• Celebrity share of JC social media posts
• Attracting potential investor with $25 000 capital offer
AO3 Analysis
Limited analysis candidate shows one link in the chain of analysis.

• (Costs) low cost and does not require the use of external agencies who may charge a fee – reduces overheads
• (Viral marketing) ease to attract the target audience – brand can grow quickly and reach new markets
• (Message and image) taken and uploaded regularly without the need to use marketing agencies–increases personal
interaction and brand loyalty
• (Allows for feedback and direct contact) improve customer loyalty – increases chance of return custom/sales
Wide customer reach online From cake pictures on social media Attracts target audience and increases
number of orders .
Reinforcing brand image Of customer designed cakes Which increase the number of social media
shares increases profit margins .

PUBLISHED
1(d) Evaluate whether a bank loan is the most appropriate source of finance for JC’s growth. 12
understanding
2 marks 2 marks 2 marks 6 marks
3 5–6 marks
• A developed
business context.

and/or factor(s) is used relevant point(s) to the connections between judgement/conclusion is made.
to answer the question. business context. causes, impacts and/or • Developed evaluative
consequences. comments which balance
some key arguments.

of relevant key term(s) of relevant point(s) to that identifies • A judgement/conclusion is
and/or factor(s) is used the business context. connections between made with limited supporting
to answer the question. causes, impacts and/or comment/evidence.
consequences. • An attempt is made to balance
the arguments.

No creditable response. No creditable response. No creditable response. No creditable response.

PUBLISHED

Knowledge of Bank loans (max 2 s)
• set amount
• fixed period of time
• fixed interest rate
• requires good credit/reputation
Knowledge of other internal and external sources of finance; (max 2 s)

• retained earnings
• owners investment
• mortgage
• hire purchase
• overdraft
• partner
AO2 Application
Limited application applies knowledge of appropriateness of sources of finance to DC once.
Developed application + applies knowledge of appropriateness of sources of finance twice.
• retention of 100% stake, not a 50% stake
• $25 000 investment offered requires a 50% sale of JC
• capital investment to rent business premises/a kitchen, employ staff and invest in promotion
• current gearing ratio of 0

PUBLISHED
1(d) AO3 Analysis

Bank loan as an appropriate source of finance

• retains full control – is able to make investment decisions in his own long term best interest
• keeps all future profits for own benefit – no risk of externals hindering future expansion
• liable for interest and loan repayments – may reduce cashflow which is already poor and will require an alternative
short term SoF such as an overdraft or owners investment
Investor as an appropriate source of finance

• loss of complete ownership – may have negative implications on Jake’s motivation levels
• ability to control finances would be reduced (as he would have to gain agreement from the investor on any financial
decisions) – investor may not want to invest capital on non-owned property
• able to invest to improve marketing/employ staff – no financial repayment risk – all future profits can be reinvested or
taken as dividends
Any alternative source of finance compared with the business loan/suitability for JC to be accepted
AO4 Evaluation
• does JC need the investment as he was able to keep up with demand, invest in his equipment and as the closing
balance is positive and growing each month?
• does Jake have the necessary ability to manage the risk of an external source of finance?
• the most important benefits and drawbacks of a bank loan as a source of finance
• weighing up the objectives and risks of choosing a bank loan
• a judgement on whether a business loan is most appropriate for JC based on the evidence

PUBLISHED
1(d) Accept all valid responses.
Bank Loans means a fixed amount of money from the bank but can have high interest rates which would lead to
increased costs/outflows and lower profits for the business which means he will not be able to improve his cash flow
issues as shown by the negative cash flow forecast.
Retained earnings can also be another type of source of finance JC can get from its profits. Which means there are no
cash outflows required such as when borrowing money. This is a method that JC already used for marketing and new
equipment This will allow JC to have a better cash flow but he may not have enough capital to invest into the garage
conversion straight away.
A bank loan is the most appropriate method as a source of finance as JC requires $15 000 so he can specifically ask for
this amount from the bank to be able to reach its aim for growth.
However, this also depends on whether JC is able to take a loan from the bank or not and if so whether the interest rate
is affordable because if it is not affordable then the cost will increase drastically which will further affect the poor cash
flow forecast negatively

PUBLISHED
2(a)(i) Identify one non-financial motivator. 1
Identification of a non-financial motivator may include: ( )

Any non-financial motivators
• job rotation/enlargement/enrichment
• job redesign
• training and development
• promotion, status and empowerment
• teamworking
• quality circles
2(a)(ii) Explain the term demand. 3

1 mark 2 marks
2 marks
1 mark 1 mark
the question.
0 marks 0 marks
Indicative content
Knowledge of demand may include:

• the number of consumers willing to pay at a given price
• the quantity of a product that consumers are willing/(and able) to buy at a given price (in a specific time period).

PUBLISHED
2(a)(ii) AO2 Application

Limited application applies knowledge of demand to one of the below
Developed application + applies knowledge of demand to two of the below
Can change as a result of a change in any of the following factors:

• consumer incomes
• prices of substitute goods and complementary goods
• population size and structure
• fashion and taste
• advertising and promotion
Can affect:
• pricing
• production
• Examples of demand
The quantity of products customers are willing and able to buy . 3 A clear definition with two elements from
That can affect pricing decisions , in response to the price of the indicative application
substitutes .
The quantity of products customers are willing and able to buy . 2 A clear definition with one element from
Which may change due to consumer incomes . the indicative application
The quantity of products customers are willing and able to buy . 1 A basic definition
The quantity of products customers want to buy. 0 Too vague. Some idea of an increase
however could relate to simply selling
higher quantities.

PUBLISHED
2(b)(i) Refer to Fig. 2.1. Calculate the total market growth between summer 2022 and summer 2023. 3
total sales in a time period present value – past value

Formula:  100 (1)  100 (1)
Total sales in a time period past value
7.5 ( 7.5 − 5 )  100
 100 (2) (2)
5 5
= 150 (%) (3) = 50% (3)
OFR applies
Percentage sign not required
3 marks Correct answer Working and tonnes do not matter.

150 OR 50 (%) Must be three to denote the three marks.
Correct rounding must be applied.
2 marks Both of the following: To award two marks, there must be

• Correct use of figures OR
OR
An incorrect answer with one mistake allowing OFR for • One , one and one
final stage. (eg not multiplying by 100)
OR
A correct answer from an inverted formula (–50% – OFR)
• Correct identification of figures

• One

PUBLISHED
2(b)(ii) Explain one benefit to CM of using price skimming. 3

1 mark 2 marks
2 marks
1 mark 1 mark
the question.
0 marks 0 marks
Indicative content
Knowledge of a benefit of using price skimming may include:
• High (selling) price
• High profit margin
• Maximises short run profits before competition enters the market
• Creates an exclusive image
• Covers high development costs

PUBLISHED
2(b)(ii) AO2 Application

Limited application , applies knowledge of a benefit of price skimming to CM once.
Developed application + applies knowledge of a benefit of price skimming to CM twice.
• private limited company

• specialist motorcycle components
• specialist engineers
• job production
• high quality products
• quality unique products
Higher selling prices as selling specialist motorcycle 3 One benefit which is related to the case
parts to customers who are happy to wait 10 weeks material twice .
Higher selling prices as selling specialist motorcycle 2 One benefit which is related to the case
parts material
Higher selling prices 1 High(er) selling price is a correct answer
Make more money/profit 0 This is generic and does not show understanding of
price skimming as can be achieved in many ways

PUBLISHED
2(c) Analyse two impacts on CM of its employees having a poor work-life balance. 8

understanding
2 marks 2 marks 4 marks
2 3–4 marks
Developed analysis
between causes, impacts and/or consequences of
two points.
between causes, impacts and/or consequences of
one point.

to answer the question. business context. between causes, impacts and/or consequences of
• Knowledge of one • Application of one two points.
relevant point is used to relevant point to a • Limited analysis that identifies connections
answer the question. business context. between causes, impacts and/or consequences of
one point.


PUBLISHED

• the minimisation of work-related stress, and the establishing of a stable and sustainable way to work while maintaining
health and general well-being.
• maintaining a harmonious relationship between your work and personal life.
• a situation in which employees are able to allocate the right amount of time and effort to work and to their personal life
outside work.
Knowledge of two impacts of poor work life balance (max 2 s), may include:
• tired employees
• lack of motivation
• increased staff turnover
• increased training costs
• longer lead/production times
• reputation of the business
AO2 Application
Max one for application to each impact of poor work life balance.
• private limited company

• specialist motorcycle components
• specialist engineers
• job production
• high quality products
• quality unique products
• highly skilled, trained and motivated and very proud of their high-quality products
• lead times increased from 4 to 10 weeks
• additional pressure onto CM’s engineers who are salaried employees
• often have to work evenings and weekends

PUBLISHED
2(c) AO3 Analysis

Analysis may include:

• a lack of motivation from pressurised workforce may reduce the current output – further increase the production times
• poor work-life balance may lead to mistakes – reduce the USP/reputation used to justify price skimming approach
• increased staff turnover – may lead to increased production times – may reduce demand/sales
Exemplar for one impact of poor work Tired employees As often work evenings This could reduce
balance and weekends . motivation and increase
Annotations for the first impact should the likelihood of
be placed in the left-hand margin. mistakes/low productivity
.
Exemplar of a second impact of poor work Increased staff Of the highly skilled, Could increase recruitment
balance turnover trained and motivated and training costs and
Annotations for the second impact engineers . reduce profitability .
should be placed in the right-hand
margin.

PUBLISHED
2(d) Evaluate whether CM should change its method of production. 12
understanding
2 marks 2 marks 2 marks 6 marks
3 5–6 marks
• A developed
business context.

Developed knowledge Developed application Developed analysis Developed evaluation
of relevant key term(s) of relevant point(s) to that identifies • A developed
and/or factor(s) is used the business context. connections between judgement/conclusion is made.
to answer the question. causes, impacts • Developed evaluative
and/or consequences. comments which balance
some key arguments.

of relevant key term(s) of relevant point(s) to that identifies • A judgement/conclusion is
and/or factor(s) is used the business context. connections between made with limited supporting
to answer the question. causes, impacts comment/evidence.
and/or consequences. • An attempt is made to balance
the arguments.

No creditable response. No creditable response. No creditable response. No creditable response.

PUBLISHED

Knowledge of methods of production (max 2 s), including:
• job/batch/flow/mass customisation
• factors of production
• the nature of economic activity
• the dynamic business environment
• business risk and uncertainty
• business growth
AO2 Application
Limited application applies knowledge of methods of production to CM once.
Developed application + applies knowledge of methods of production to CM twice.
• CM uses job production

• current reputation for CM of handmade, quality products
• highly skilled, trained and motivated mechanic/engineers (has to be explicit, not e.g. well trained workforce)
• employees proud of high quality motorcycle products/components
• Joyce wants batch and Harry wants more job production
• sales have increased by 1.5x in one year
• specialist products allow for price skimming
• lead times for have increased from 4 weeks to 10 weeks
• salaried employees often work evenings and weekends
• employ more skilled engineers
• invest in new technology for batch production

PUBLISHED
2(d) AO3 Analysis

Continue with job production

• retain reputation – keep using price skimming – increases profit per unit
• customers are happy with 10 week lead times – future demand guaranteed
• job production will not allow for economies of scales – profit may be below target
• increased pressure on engineers – may leave for a less stressful job – increases training/recruitment costs or lose
valuable skills
Invest in batch
• increase rates of production – reduce production times/increased sales
• reduce pressure on high skilled employees which may increase motivation
• allow for economies of scale – will reduce the cost per unit – increase profit margins
• may damage CM reputation/USP as no longer hand made products – may reduce demand
• machine made products may not be as popular – may reduce ability to use price skimming methods – would reduce
selling price and profit margin
AO4 Evaluation
Developed evaluation in context – supported judgement in context and/or reasonable evaluative comment in context
• the feasibility and risk of investing into each option

• the likely impact on profit/profit margin
• weighing up of objectives and risks
• the potential consequences of not investing into the future
• a judgement on whether or not CM should invest in any or all of the options
• an attempt to advise CM on investment decisions and the short and long term impacts on CM

PUBLISHED
2(d) Exemplar and annotations
Job production increases demand as products are made to specific customers’ needs which will allow CM to charge
premium prices and gain higher profits CM is already well-known specialist motorcycle parts
Batch production can also allow CM to produce a variety of motorcycles to meet more different customer choices
and increase sales revenue continuing the trend already seen by CM 50% increase in sales in one year.
CM should not change its production method as it is already using job production and it will allow JC to continue
providing specialist motorcycles to meet the gap in the market and benefit from the increase in sales and profits
However, this also depends on whether JC is able to maintain competitiveness with only specialist parts as batch may
give it a chance to expand it market and reduce the 10 week lead time.

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Cambridge International AS & A Level

You must answer on the enclosed answer booklet.

You will need: Answer booklet (enclosed)

This document has 4 pages. Any blank pages are indicated.

1 Fruit Farm (FF)

Table 1.1 Data about FF’s fruit pickers’ payment 5

• poor induction for new employees

(a) (i) Identify one content theory of motivation. [1]

(ii) Explain the term supply chain management. [3]

(ii) Explain one advantage to FF of introducing time‑based payment. [3]

© UCLES 2023 9609/22/F/M/23

2 Wedding Gifts (WG)

Table 2.1 Jo’s order details 10

Design Small star with personalisation

Tomas received an email reply from Jo (see Fig. 2.1).

Fig. 2.1 Email from Jo

(a) (i) Identify one factor of production. [1]

(ii) Explain the term sole trader. [3]

This document consists of 29 printed pages.

© UCLES 2023 [Turn over

GENERIC MARKING PRINCIPLE 1:

Marks must be awarded in line with:

GENERIC MARKING PRINCIPLE 2:

GENERIC MARKING PRINCIPLE 3:

Marks must be awarded positively:

GENERIC MARKING PRINCIPLE 4:

© UCLES 2023 Page 2 of 29

GENERIC MARKING PRINCIPLE 6:

© UCLES 2023 Page 3 of 29

1 Components using point-based marking:

From this it follows that we:

2 Presentation of mark scheme:

© UCLES 2023 Page 4 of 29

© UCLES 2023 Page 5 of 29

AO1 Knowledge and understanding

© UCLES 2023 Page 6 of 29

0 (zero) marks or NR (no response)

© UCLES 2023 Page 7 of 29

1(a)(i) Identify one content theory of motivation. 1

Responses may include:

Accept all valid responses.

© UCLES 2023 Page 8 of 29

1(a)(ii) Explain the term supply chain management. 3

AO1 Knowledge and understanding AO2 Application

AO1 Knowledge and understanding

Exemplars for application:

Accept all valid responses.

© UCLES 2023 Page 9 of 29

Answer = ($)11 (3)

© UCLES 2023 Page 10 of 29

1(b)(ii) Explain one advantage to FF of introducing time-based payment. 3

AO1 Knowledge and understanding AO2 Application

Responses may include:

AO1 Knowledge and understanding

© UCLES 2023 Page 11 of 29

Level AO1 Knowledge and AO2 Application AO3 Analysis

1 1–2 marks 1–2 marks 1–2 marks

0 0 marks 0 marks 0 marks

Annotate the first non-financial motivator ( ) in the left margin.

© UCLES 2023 Page 12 of 29

1(c) Responses may include:

© UCLES 2023 Page 13 of 29

1(c) AO3 Analysis

Analysis may include: