Mark Scheme (Results)

Summer 2018

International GCSE Business Studies

(4BS0/01)
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Summer 2018
Publications Code 4BS0_01_1806_MS*
All the material in this publication is copyright
© Pearson Education Ltd 2018

4BSO1/01 1806
General Marking Guidance

 All candidates must receive the same treatment.

Examiners must mark the first candidate in exactly the same
way as they mark the last.
 Mark schemes should be applied positively. Candidates
must be rewarded for what they have shown they can do
rather than penalised for omissions.
 Examiners should mark according to the mark scheme
not according to their perception of where the grade
boundaries may lie.
 There is no ceiling on achievement. All marks on the
mark scheme should be used appropriately.
 All the marks on the mark scheme are designed to be
awarded. Examiners should always award full marks if
deserved, i.e. if the answer matches the mark scheme.
Examiners should also be prepared to award zero marks if the
candidate’s response is not worthy of credit according to the
mark scheme.
 Where some judgement is required, mark schemes will
provide the principles by which marks will be awarded and
exemplification may be limited.
 When examiners are in doubt regarding the application
of the mark scheme to a candidate’s response, the team leader
must be consulted.
 Crossed out work should be marked UNLESS the
candidate has replaced it with an alternative response.

4BSO1/01 1806
Question Answer Mark
Number
1 (a)(i) D

A Rent – is not correct because is a

fixed cost.

B Salaries – is not correct because it is

a fixed cost.
C Insurance – is not correct because it
is a fixed cost.
D Shipping Costs – is correct because
the cost is dependent on what is
shipped and this can vary.
(1)

Question Answer Mark

Number
1 (a)(ii) C

A Business plan – is not correct because

it is not used in recruitment
B Person description – is not correct
because there is no such term.
C Job description – is correct because
it is a document describing the
job.
D Job enrichment – is not correct as it
is not a document
(1)

4BSO1/01 1806
Question Answer Mark
Number
1 (a)(iii) B

A Sales revenue – is not correct

because this is income from sales

B Reinvested profit – is correct

because it is a long term source of
finance.
C Trade Credit – is not correct because
it is a short term source of finance
D Bank overdraft – is not correct
because it is short term source of
finance
(1)

Question Answer Mark

Number
1 (a)(iv) C

A Political – is not correct because

there is no legislation regarding politics
for workers.
B Ethical – is not correct because there
is no legislation regarding ethics for
workers.
C Age – is correct because there is
legislation saying you cannot
discriminate workers by age.
D Ability – is not correct because there
is no legislation regarding ability for
workers.
(1)

4BSO1/01 1806
Question Answer Mark
Number
1 (a)(v) D

A Productivity – is not correct because

it is a measure of the number of articles
produced by a worker in a given period
of time.
B Job Share – is not correct because it
is sharing a job with someone else.
C Span of control – is not correct
because it is the number of people a
person is responsible for.
D Delegation – is correct because you
are giving someone else the
responsibility to do something.
(1)

Question Answer Mark

Number
1 (b) Tertiary
(1)

Question Answer Mark

Number
1 (c) Valid points include:
AO1 = 3
(Definition)
 Refers to a process or industry that requires
a large amount of people/human labour
(AO1) to produce goods or services (AO1).
Uses more people/human labour than
capital/machines (AO1)

(3)

4BSO1/01 1806
Question Answer Mark
Number
1 (d)
AO1 = 5 ii) H

iii) D
iv) B
v) G

vi) C
(5)

Question Answer Mark

Number
1 (e) (i) Valid points include:

AO1 = 3  Notices
 Contract
 Memo
 Wage slip
 Report

(3)

Question Answer Mark

Number
1 (e) (ii) Valid points include:

AO2 = 3 (letter)
 Is more personal as it is sent to one or two
individuals. (A02)
 It is private as the person can decide when
and where to read the letter. (A02)
 A letter can be referred to at a later date for
reference purposes. (A02)
 A letter is always there as a reminder – of
instructions that may have to be followed.
(A02)

1x3
(3)

4BSO1/01 1806
Question Answer Mark
Number
2 (a) (i) Valid points include:

AO2 = 2  Objectives give a business a focus (AO2) so

Max knows what he is aiming for (AO2).
 Employees know what they are working
towards (AO2) so everyone works towards
the same goals/targets (AO2).
 Act as a measure of success (AO2), if they
achieve a 10% increase in sales, they will
know that it is a good year (AO2).
(2)

Question Answer Mark

Number
2 (a) (ii) Valid points include:

AO3 = 4  (wealth creation/growth) means that the

business is surviving and enjoying success
(AO3) and with this success can mean that
the business is more stable (AO3) likely to
continue to grow/expand (AO3).
 Employees feel more secure because the
business is successful (AO3) which means
that their job is secure and they will be paid
each week/month (AO3) which means they
will be more loyal to the business (AO3).
2x2
(4)

Question Answer Mark

Number
2 (b) (i) Valid points include:

AO2 = 2  Large stock means that customer orders

can be met on time.
 Customers are not disappointed as the
business will always have what they want.
 Gives the business a good reputation for
never being under sold on items.
 Customers will not go to competitors if they
have sufficient stock of items.
 Larger stocks may mean that MME has
better bargaining powers for price of goods.

1 mark for each point identified

(2)

4BSO1/01 1806
Question Answer Mark
Number
2 (b) (ii) Valid points include:

AO2 = 2  It is expensive keeping a large stock.

 Ties up money that could be used for
purchasing other goods.
 Stock may not be what customers want to
order.
 Takes up space in the business.
 Large quantities of stock could mean that
the records become obsolete and therefore
it is money wasted.

1 mark for each point identified

(2)

Question Answer
Number
2 (c) Valid points include:

AO4 = 4  (Size/growth) If the business is increasing in size or

the number of products it offers/or employees it has to
employ then it is growing (AO4). Also it could be the
number of sales or the value of the business, if they
are increasing then the business is growing (AO4).
 (Turnover) The business can judge its success by the
number of goods sold (AO4) the greater the number,
the more successful (AO4). If the turnover increases
year by year it may be more successful (AO4).
 (Survival) If the business is surviving then it means
that the business is successful (AO4) and it should be
making a profit (AO4) or they can compare their
business against another similar business (AO4).
 (Profit) if the business sees the profit increase it may
consider itself successful(AO4), and this could mean
more money available to invest in the business (AO4).

2x2

Question Answer
Number Mark
2 (d) (i) Valid points include:

AO1 = 2  Each item has a bar code (A01) which can

be scanned (A01)

1x2
(2)

4BSO1/01 1806
Question Answer
Number Mark
2 (d) (ii) Valid points include:

AO4 = 4  All data of sales are stored on the computer

which is helpful for the business as they
know exactly what is sold (AO4). Without
having to count the items and check what is
in stock the computer data can access this
information quickly (AO4). An itemised
receipt can be given to the customer so
they can check what has been bought but
also the business has a record of the sale
(AO4). At the end of a day or end of a
period of time the computer can produce
different reports in different formats as
required (AO4). Checking actual stock with
computer records is easier for MME (AO4).

1x4
(4)

Question Answer Mark

Number
3 (a) Valid points include:

AO2 = 2  (Advertisement) the adverts will reach a

AO3 = 4 wider audience (AO2) which means that
more people will be able to see the advert
(AO3). This means that they could be
potential customers (AO3) and more likely
to visit the shop (AO3). MME is not that big
(AO2) and the adverts could be expensive
which means that they may not be able to
target the right audience for the business
(AO3). There is no guarantee that the
adverts will work (AO3).

 (Leaflets) the leaflets can target the people

who live in the area (AO2) and they are
more likely to visit the shop or go online to
view the products (AO3). They could be
passing the shop and remember the leaflet
and are therefore encouraged to visit (AO3)
as it is not too far away (AO3). However
leaflets are not always read by people
(AO3) and they could be simply thrown
away or discarded (AO2).

(6)

4BSO1/01 1806
Question Answer Mark
Number
3 (b) (i) Methods include:

AO1 = 2  Donate to charity

 Provide music for special events
 Host events within the community
 Article in a newspaper
 Exhibitions
 Press conferences

1x2 (2)

Question Answer Mark

Number
3 (b) (ii) Valid points include:

AO2 = 4  If MME sponsor a football team it means

that their name is seen by a number of
people/potential customers (AO2) also
members of the public think that the
business is trying to help the community
(AO2).

 It creates a positive public image (AO2).

Which would help improve MME reputation
(AO2).

2x2 (4)

4BSO1/01 1806
Question Answer Mark
Number
3 (c) Valid points include:

AO2 = 2  (Advantages) Customers can purchase

AO3 = 3 their goods at any time of the day or night
AO4 = 3 (AO2), they do not have to travel to the
shop and spend money travelling (AO3).
They will have access to all records and
could purchase more records (AO4) as they
will have more time to view what is for
sale(AO4). Additional online offers can be
made to encourage sales (AO3).

 (Disadvantages) Customers will no longer

be able to see what they are buying before
purchasing (AO2). Often people will
impulse buy when they see something in a
shop, this will not happen (AO3). People
might have difficulty seeing/using the
website and see what is available to
purchase (AO4). There could be delays in
the goods being received (AO3). Goods
could be damaged on route and customers
would not be happy, meaning the business
gets a bad reputation ((AO4).

If only advantages/disadvantages limit to 4

marks. (8)

Question Answer
Number Mark
4 (a)
 Where total revenue equals total cost
AO1 = 2  The point at which there is no profit or loss
 Fixed cost/contribution
(2)

Question Answer Mark

Number
4 (b) (i) 2016 = 1.075 : 1
2017 = 0.50 : 1
AO2 = 2
Accept 1.075/1.08 and 0.50/0.5 (2)

4BSO1/01 1806
Question Answer Mark
Number
4 (b) (ii) Valid points include:

AO2 = 2  The ratio from 2016 to 2017 has gone down

AO3 = 5 by 0.575 (AO2) showing that the business
AO4 = 1 is not doing as well as previously and is
illiquid (AO2). The ideal ratio for the
business should be 1:1 meaning that MME
can pay their debts (AO3). At present they
are unable to do this and this is cause for
concern (AO3). However, this ratio is one
of the tougher measures of a business
(AO3). It does not mean that MME is in
trouble, because they still have current
assets that they can sell to help make the
business solvent (AO3). Fixed assets can be
sold to make the business more liquid are
not items that can easily be sold to making
the business more liquid (AO3). The
difference could mean that MME has
increased its current assets considerably
which would show in these figures by being
lower in 2017 (AO4).
(8)

Question Answer Mark

Number
4 (c) (i) Valid points include:

AO1 = 2  The price/value of one country’s currency

(1) when compared/against/in terms of
another country’s currency. (1)
(2)

4BSO1/01 1806
Question Answer Mark
Number
4 (c) (ii) Valid points include:

AO2 = 1  If the value of the pound increases this

AO3 = 1 means that it will be more expensive for
AO4 = 4 overseas customers to buy MME’s goods
(AO2). This means that they are less likely
to buy the products, preferring to buy them
from their own country (AO3) but they may
not be available in their country (A04).This
will reduce the amount of sales that MME
will be making (AO4) and therefore reduce
revenue and the consequences could be
that MME decide not to sell to customers
abroad (AO4). Alternatively they could
reduce their price to match (AO4) and this
would reduce the profit but still maintain
selling to customers abroad (AO4).

Max of 4 for one effect

(6)

Question Answer Mark

Number

4BSO1/01 1806
5 (a) Valid points include:

AO2 = 2  (closing the high street) Max can save

AO3 = 2 money by closing the high street, no high
rent to pay etc (AO2) they can open
whenever they want as they are not
restricted to certain times of the day, e.g.
work 24 hours if needed (AO2). With no
shop to maintain at certain hours they can
work when they want to (AO3). It allows for
employing staff who are more flexible
(AO3). The premises could be larger out of
town which means that they have more
stock to sell (AO3).

 (remain on the high street) If MME remains

on the high street then they can still gain
customers who are passing by the shop
(AO2) this will also allow them to have a
presence in the town centre (AO2). It gives
publicity to the shop if there are any special
events on in the town, as they can belong
to it, e.g. summer fayres etc (AO3). They
have somewhere for the customers to come
and browse through the products (AO3) and
also ask questions and get information from
the staff working in the shop (AO3).

(4)

Question Answer Mark

Number

4BSO1/01 1806
5 (b) Valid points include:

AO1 = 2  Increase in sales (AO1). The more sales

AO3 = 4 that have been generated from the website
means that it is successful (AO3). The
website targets a wider audience so more
people from across the world have access to
the website (AO3).
 Increase in awareness of business (AO1).
The website allows more people to see what
the business has to offer (AO3) they can
ask for specific DVD’s, CD’s or they can
make contact with people who enjoy the
same sort of music (AO3).
 The more ‘hits’ on the website (AO1)
indicate that people are looking at his
website and this could mean that they are
looking to purchase (AO3) or they are
looking to see what MME are selling (AO3).
 Feedback from customer (AO1)Customer
will tell max whether that are happy or
unhappy with the website (AO3)
Max can plan any Improvements based on
customer feedback (6)

Question Answer Mark

Number

4BSO1/01 1806
5 (c) Valid points include:

AO2 = 2  (overdraft) This is a very flexible method of

AO3 = 4 borrowing money (AO2). If Max requires more
AO4 = 4 money and as long as the bank agrees he can
borrow the money, then an overdraft is useful
(AO3). However the bank may not agree to the
overdraft or they can request the money back at
any time (AO2). Often overdrafts can be cheaper
than loans for borrowing money (AO4). The
interest rates can be more expensive if the
overdraft is for a long time (AO4). Borrowing from
family could be more difficult as they may not have
sufficient funds to borrow (AO3) which could put
the business into financial difficulty (AO4). If the
payments are not met on a regular basis this could
cause bad feelings within the family (AO4). If the
amount of money required is not too much then an
overdraft is the better choice as it allows the
money to be paid back when available (AO3) and
you do not lose the support of your family if you
are not able to pay back by a certain date (AO3).
Banks may also renegotiate an overdraft if needed
(AO4).

 (family) This is probably the cheapest way of

borrowing money (AO2) depending on the
relationship with the family the repayment terms
may be very flexible (AO3). The money is available
quite quickly and there are no meetings and
documentation required to gain the money (AO3).
However the amount of money borrowed could be
limited which is a disadvantage (AO2) which could
mean that you have to find other ways of obtaining
the additional money (AO3). Family may loan the
money without any costs involved or any details
with regard to why the money is needed (AO4).
However if the money is not paid back at the
correct time or the full amount it could lead to
family quarrels and disagreements or falling out
with family (AO4). This is perhaps where an
overdraft is the more financially secure alternative
as it is made with a third party (AO3), the terms
and details can be negotiated and re-negotiated if
needed (AO4).

5 marks maximum for why method selected

5 marks maximum for why other method is rejected
Any combination to a maximum of 10 mark
(10)

4BSO1/01 1806
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4BSO1/01 1806