Cambridge IGCSE™: Business Studies 0450/13

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Cambridge IGCSE™

BUSINESS STUDIES 0450/13


Paper 1 Short Answer/Data Response May/June 2023
MARK SCHEME
Maximum Mark: 80

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 May/June 2023 series for most
Cambridge IGCSE, Cambridge International A and AS Level and Cambridge Pre-U components, and some
Cambridge O Level components.

This document consists of 24 printed pages.

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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.

GENERIC MARKING PRINCIPLE 2:

Marks awarded are always whole marks (not half marks, or other fractions).

GENERIC MARKING PRINCIPLE 3:

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.

GENERIC MARKING PRINCIPLE 4:

Rules must be applied consistently, e.g. in situations where candidates have not followed instructions or in the application of generic level
descriptors.

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GENERIC MARKING PRINCIPLE 5:

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).

GENERIC MARKING PRINCIPLE 6:

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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0450/7115/0986 Business Studies - Paper 1 Annotations

Annotation Description Use

Tick Tick Indicates a point which is relevant and rewardable.

X Cross Indicates a point which is inaccurate/irrelevant and not rewardable.

BOD Benefit of doubt Used when the benefit of the doubt is given in order to reward a response.

TV Too vague Used when parts of the answer are considered to be too vague.

REP Repetition Indicates where content has been repeated.

NAQ Not answered Used when the answer or parts of the answer are not answering the question asked.
question

K Knowledge Indicates knowledge and understanding of the concepts and issues relating to the question.

APP Application Indicates appropriate reference to the information in the stem.

AN Analysis Indicates where the answer has demonstrated analysis.

EVAL Evaluation Indicates where the answer has demonstrated evaluation (part (e) questions only).

OFR Own figure rule If a mistake is made in a calculation, and the incorrect figure that results from the mistake is used for
subsequent calculations.

SEEN Noted but no Indicates that content has been recognised but not rewarded.
credit given

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Question Answer Marks Notes

1(a) Define ‘mass market’. 2 Do not award:


Alternative words for mass e.g. big/large
Award 2 marks for a full definition. Award 1 mark for a partial definition. market.
Lots of sellers, lots of competitors, lots of
Where there is a very large number of sales of a product [2] products as this simply describes a market.
OR
Selling the same product to the whole market [2]
OR
A large market containing lots of customers buying similar products [2]

Partial definition e.g. lots of customers / lots of sales / lots of buyers [1]

1(b) Calculate X and Y. 2 $ sign is not required.

Award 1 mark for each correct calculation.

X: $60 000 or 60
Y: $80 000 or 80 or (80)

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Question Answer Marks Notes

1(c) Outline two reasons why managing cash flow might be important 4 To use words from the stem as application, the
for TDG. reference must be appropriate (i.e. make
sense) in relation to the point being made.
Award 1 mark for identification of each relevant reason (max 2).
The following words are likely to be appropriate
Award 1 mark for each relevant reference to this business (max 2). for this question:
 Bicycles/bikes
Points might include:  Retailer
 To be able to pay wages [k] to its 3 employees [app]  ($10 000) closing balance / cashflow
 Pay suppliers/trade payables [k] for the bikes [app] problem in September
 Pay expenses/heating/rent/advertising [k] to avoid cash flow problem  Customer loyalty
in September [app]  Mass market
 Repay (short-term) debts [k] of the retailer [app]  3 employees
 Predict/plan/prevent cash flow problems [k] such as the $80 000  $80 000 (cash outflow in September) –
shortfall [app] OFR
 Ensure business survival/continue [k]  $40 000(cash inflow in September)
 Cash available for emergency [k]
Other appropriate examples can be credited.
Other appropriate responses should also be credited.
Do not award:
 Invest/expand
 References to profit
 Know how to improve on own [tv]
 Support request for loan/finance

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Question Answer Marks Notes

1(d) Explain two ways TDG could overcome its short-term cash-flow 6 To use words from the stem as application, the
problem in September. reference must be appropriate (i.e. make
sense) in relation to the point being made.
Award 1 mark for identification of each relevant way (max 2).
The following words are likely to be appropriate
Award 1 mark for each relevant reference to this business (max 2). for this question:
 Bicycles / bikes
Award 1 mark for each relevant explanation (max 2).  Retailer
 –$10 000 (closing balance)
Points might include:  Customer loyalty
 Delay payments to suppliers [k] for its bicycles [app] keeping cash in  Mass market
the business for longer [an]  3 employees
 Ask/offer discounts so customers to pay quicker / insist on cash  $80 000 (cash outflow – OFR will apply)
sales [k] so business receives cash sooner [an] but may not help  $40 000
maintain customer loyalty [app]
 Overdraft [k] allows the business to have a negative cash balance Other appropriate examples can be credited.
[an] to cover the – $10 000 [app]
 Bank loan [k] to increase cash inflow [an] above $40 000 [app]  Analysis must show impact on cash flow.
 Delay/not purchase / buy cheaper equipment [k] which prevents cash
outflows [an] Do not award:
 Sell (non-current) assets [k] generates cash inflows [an]  Long-term solutions such as 'introduce
more capital / sell shares', retained profit
Other appropriate examples in context can be credited.  Decrease price / advertise on own
 References to raw materials / production

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Question Answer Marks Notes

1(e) Explain two methods a retailer could use to maintain customer 6 This is a general question so there are no
loyalty. Which would be the best method to use? Justify your marks for application.
answer.
For evaluation to be awarded justification will
Award up to 2 marks for identification of relevant points. usually follow on from relevant analysis of
points.
Award up to 2 marks for relevant development of points.
Analysis can be awarded for:
Award up to 2 marks for justified decision as to which is the best method  Explaining how method works
for a retailer to use to maintain customer loyalty.  Negatives of each method

Points might include: Do not award:


 Offer loyalty cards / offer points for every purchase / discount for  Develop / make new products as retailer.
regular/loyal customers [k] so incentive / reward to return [an]  Explanation of customer loyalty for AN.
 Train staff / offer good service/friendly conversations with customer e.g. 'so will keep coming back'. Needs to
[k] which would make them feel welcome [an] say why makes customers keep coming
 Communicate with customers or examples such as through back.
newsletters / social media [k] so they remember your business [an]  Ways to increase sales in general e.g.
 Ask for feedback / carry out market research [k] so know what is advertise / lower prices.
being sold matches customer needs [an]  Customer loyalty as [an] as in question.
 Introduce new / sell high-quality products [k]
 Resolve complaints quickly [k]
 Offer extra services or examples e.g. offer delivery / credit facilities
[k]

Other appropriate responses should also be credited.

Justification might include:

One method is a loyalty card [k] so there is an incentive to return [an]. It


could offer good service [k] so customers feel more welcome [an]. A good
service is better because this may not include any costs which a loyalty
card would [eval] which could help increase profit margin as well as
customer loyalty. [eval]

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Question Answer Marks Notes

2(a) Define ‘quality control’. 2 At end of production is +1 only.

Award 2 marks for a full definition. Award 1 mark for a partial definition. Do not award:
Reasons why quality control is carried out.
Checking of goods at the end of the production process (whether it is the Vague comments such as ensuring quality is
production of the product or a service) [2] good / whether product good enough, meeting
OR customers expectation/standards.
Checking the standard of goods through inspection [2]

Partial definition e.g.


 Checking the work [1]
 Making sure goods are up to standard [1]

2(b) Identify two ways a pressure group might try to influence business 2 Only award the first two responses given.
decisions.
Do not award:
Award 1 mark per way (max 2). Change laws
Spread awareness on own – need how.
Points might include:
 Create negative publicity / publish information about business / write
to newspaper
 Organise customer boycotts
 Organise demonstrations / protests / rally opposition
 Lobby/petition / send letters to government
 Demand interview with company
 Take legal action

Other appropriate responses should also be credited.

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Question Answer Marks Notes

2(c) State four benefits to a business of increasing efficiency. 4 Only award the first two responses given.

Award 1 mark for each relevant benefit (max 4). Do not award:
Lower labour turnover/less absenteeism
Points might include: More revenue/sales/profit.
 Reduce average/unit costs
 Fewer mistakes/errors
 Less waste
 Fewer materials needed
 Increase output
 Quicker/faster production
 Reduced inputs needed for the same level of output

Other appropriate responses should also be credited.

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Question Answer Marks Notes

2(d) Explain one external cost and one external benefit that may be 6 To use words from the stem as application, the
created by KCL’s business. reference must be appropriate (i.e. make
sense) in relation to the point being made.
Award 1 mark for identification of each relevant external cost/benefit
(max 2). The following words are likely to be appropriate
for this question:
Award 1 mark for each relevant reference to this business (max 2).  Paper/newspapers/books
 Wood (or other appropriate examples of
Award 1 mark for each relevant explanation (max 2). raw materials)
 Factory
Points might include:  Increase efficiency
 (Raw materials from) local suppliers
External cost:  Pressure groups
 Pollution/smoke/fumes created [k] from making paper [app] could  High level of inventory
damage health of people in the community [an]
 Congestion [k] caused by deliveries to the factory [app] so longer to Other appropriate examples in context can still
move about / slow down deliveries to other businesses [an] be credited.
 Use up natural resources [k] to obtain the wood [app] meaning fewer
resources available for other uses/future generations [an] Some points can be [k] or [an] but only award
 Destruction/spoil landscape [k] reducing tourism [an] once.

External benefit: Do not award:


 Provide jobs [k] as it uses local suppliers [app] so low(er) rates of Costs/benefit to business
unemployment [an] Uses of paper e.g. books/newspapers
 Help economic growth [k] which can result in additional taxes [an]
 Improved infrastructure/better road links [k] improving access for
local community/businesses [an]
 New production techniques may be introduced [k]

Other appropriate responses should also be credited.

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Question Answer Marks Notes

2(e) Explain two factors a manufacturing business should consider 6 This is a general question so there are no
when deciding how much inventory to hold. Which factor is likely to marks for application.
be the most important? Justify your answer.
For evaluation to be awarded justification will
Award up to 2 marks for identification of relevant points. usually follow on from relevant analysis of
points.
Award up to 2 marks for relevant development of points.
Some points can be [k] or [an] but only award
Award up to 2 marks for justified decision as to which is the most once.
important factor for a manufacturing business to consider when deciding
how much inventory to hold. Watch for repetition e.g. high demand, low
demand so high/low inventory.
Points might include:
 Whether product is perishable or not / shelf life [k] to reduce the
amount of wastage [an]
 Level of demand / sales [k] as if high demand needs to hold high
inventory [an]
 Seasons / celebrations/festivals/predictability of demand [k]
 Storage space available [k] could increase storage costs [an]
 Cost of holding inventory [k] as high levels could increase cash
outflows [an]
 Method of production / level of output [k] as flow production may
require high levels of inventory [an]
 Amount of finance available (to buy inventory) [k] as this could cause
cash flow problems / cannot afford to hold large amount [an]
 Delivery / lead time / where products come from / reliability of
supplier [k] so production can continue / meet orders on time [an]

Other appropriate responses should also be credited.

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Question Answer Marks Notes

2(e) Justification might include:

The amount of space available [k] as a larger warehouse may increase


storage costs [an]. Another factor is delivery time [k] as may need higher
levels of inventory to ensure production can continue [an]. Overall
delivery time is more important because if production stops, any costs
saved on storage may be lost as the business still have to pay its workers
[eval] and the lack of available products could lead to fewer sales. [eval]

Question Answer Marks Notes

3(a) Define ‘span of control’. 2

Award 2 marks for a full definition. Award 1 mark for a partial definition.

Number of subordinates reporting to each supervisor / manager [2]


OR
Number of subordinates / employees working (directly) under a manager
[2]

Partial definition e.g. whom you are responsible for [1] OR who reports to
one manager [1]

3(b) Identify two leadership styles. 2 Only award the first two responses.

Award 1 mark per leadership style (max 2). Do not award:


Descriptions of styles.
Points might include:
 Autocratic
 Democratic
 Laissez-faire

Other appropriate responses should also be credited.

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Question Answer Marks Notes

3(c) Outline two benefits to PCY of encouraging its managers to use 4 To use words from the stem as application, the
delegation. reference must be appropriate (i.e. make
sense) in relation to the point being made.
Award 1 mark for each relevant benefit (max 2).
The following words are likely to be appropriate
Award 1 mark for each relevant reference to this business (max 2). for this question:
 (4) offices
Points might include:  500 (employees)
 Reduce managers’ workload / managers have time to focus on other  Insurance (services)
(important) tasks [k] such as how the business is  Business customers / farms / factories
organised/managed [app]  Leadership style
 Quality of managers’ work improves / managers likely to make fewer  Being ethical
mistakes [k] in the 4 offices [app]  Communication barriers
 Increase employee motivation [k] of its 500 employees [app]  Span of control
 Builds trust / better working relationship between managers and  Planning to change how business is
employees [k] which could influence its leadership style [app] managed / organised
 Way to develop employee skills / increase employee flexibility /
employees may have better knowledge of issue [k] at the insurance Other appropriate examples can be credited.
business [app] To access [k] – must indicate who the point
refers to e.g. reduce workload of manager.
Other appropriate responses should also be credited. Communication barriers is [app] only.

Do not award:
Benefits to employees e.g. feel trusted.

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Question Answer Marks Notes

3(d) Explain two possible reasons why being ethical is important to PCY. 6 To use words from the stem as application, the
reference must be appropriate (i.e. make
Award 1 mark for identification of each relevant reason (max 2). sense) in relation to the point being made.

Award 1 mark for each relevant reference to this business (max 2). The following words are likely to be appropriate
for this question:
Award 1 mark for each relevant explanation (max 2).  4 offices
 500 employees
Points might include:  Insurance (services)
 Increased/retain sales / demand / customers [k] from farms /  Business customers / farms / factories
factories [app] leading to higher revenue [an]  Leadership style
 Build / better reputation / brand image [k] leading to better customer  Communication barriers
loyalty / sales / competitive advantage [an] for its insurance [app]  Span of control
 Help attract / motivate / retain employees [k] improving efficiency /  Delegation
better quality of service / less labour turnover [an] from its 500
employees [an] Other appropriate examples can be credited.
 Investors may be more likely / willing to invest [k] increasing the
amount of capital / funds [an] Some points can be [k] or [an] but only once
e.g. customer loyalty
Other appropriate responses should also be credited.
Do not award:
Comply with laws/less risk of legal as being
ethical is different to legal.
Examples of being unethical
Ways to be ethical.

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Question Answer Marks Notes

3(e) Do you think lack of feedback is the main barrier to effective 6 This is a general question so there are no
communication in a business? Justify your answer. marks for application.
For evaluation to be awarded justification will
Award up to 2 marks for identification of relevant points. usually follow on from relevant analysis of
Award up to 2 marks for relevant development of points. points.
Award up to 2 marks for justified decision as to whether the lack of
feedback is the main barrier to effective communication in a business. Knowledge can be awarded for:
Problems caused by lack of feedback e.g.
Points might include: mistakes, lower efficiency
Identify other communication barriers.
Lack of feedback:
 Do not know whether message has been understood [k] which could Analysis is for:
lead to errors / wrong actions taken [an] Development / impact of barrier on the
 Do not know whether recipient has received [k] which can lead to business.
delays [an]
Points can be written as either advantages /
Other barriers could include: disadvantages of different barrier but only
 Technical problems e.g. no signal/equipment breakdown [k] so award once e.g. not understood.
message cannot be sent / received [an]
 Too much information sent in message [k] which can lead to Some points can be [k] or [an] but only award
mistakes / slow down decision-making [an] once e.g. Understood, mistakes
 Jargon used / language [k] so receiver cannot understand [an] Lower quality is [an] only.
 Noise / distractions [k] so not able to hear the message [an]
 (Wrong) communication method used [k] so people are unable to Do not award:
access / read message [an] Reasons why communicate.
General issues of poor communication e.g. not
 Message has to pass through too many levels / employees [k] so
know what to do / what doing.
message gets distorted / lost [an]
Focus on why feedback is important or
 Send wrong message / send message to the wrong person [k] so the
problems of giving feedback e.g. demotivated.
actual message is never sent / received [an]
 Problems with receiver or examples e.g. receiver may not listen [k]

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Question Answer Marks Notes

3(e) Other appropriate responses should also be credited.

Justification might include:

Without feedback it is difficult to know whether the message has been


understood [k] which could lead to the wrong actions being taken [an].
There may be no internet signal [k] so the message cannot be sent [an].
Overall, the lack of feedback is the most important barrier because they
are more likely to know whether a technical problem has happened,
whereas with a lack of feedback they may not know until an error is made
[eval] damaging the business's reputation. [eval]

Question Answer Marks Notes

4(a) Identify two ways a government might support business start-ups. 2 Only award the first two responses given.

Award 1 mark per way (max 2). Do not award:


Vague answers such as cover costs, provide
Points might include: cash / money / invest / sponsor / incentives
 Offer financial support or examples such as grants / (low-cost) loans
 Provide training
 Provide information / advice / support/mentors
 Provide low-cost / rent-free property / location
 Offer lower tax rates / tax breaks / tax relief
 Encourage universities to make research facilities available
 Organise business fairs.

Other appropriate responses should also be credited.

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Question Answer Marks Notes

4(b) Identify two ways a market can be segmented. 2 Only award the first two responses given.

Award 1 mark per way (max 2). Can award:


 Demographic if age / gender / socio-
Points might include: economic group / social status/ethnic
 Age group not awarded
 Gender  Psychographic if lifestyle, personality or
 Socio-economic group / social status / class attitudes not awarded.
 Location / region / geographic
 Interests / lifestyle
 Family characteristics
 Education
 Occupation
 Use of product
 Ethnic group

Other appropriate responses should also be credited.

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Question Answer Marks Notes

4(c) Outline two characteristics Meena will need to become a successful 4 To use words from the stem as application, the
entrepreneur. reference must be appropriate (i.e. make
sense) in relation to the point being made.
Award 1 mark for each relevant characteristic (max 2).
Award 1 mark for each relevant reference to this business (max 2). The following words are likely to be appropriate
for this question:
Points might include:  Handmade
 Risk-taking [k] as leaving her job [app]  Jewellery
 Self-motivated / determination / resilience / perseverance [k] for her  Leaving her job /teacher
start-up [app]  Start-up/new business
 Hard-working [k] especially if she decides to be a sole trader [app]  Brother
 Creative [k] as products will be handmade [app]  Sole trader
 Effective communicator [k] as may need to discuss matter with  Partner
partner [app]  Government support
 Self-confident [k]  Market research
 Optimistic/positive [k]  Market segment
 Independent [k]
 Innovator [k] Other appropriate examples can be credited.

Other appropriate responses should also be credited.

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Question Answer Marks Notes

4(d) Explain one advantage and one disadvantage to Meena of operating 6 To use words from the stem as application, the
as a sole trader rather than being in a partnership. reference must be appropriate (i.e. make
sense) in relation to the point being made.
Award 1 mark for identification of each relevant advantage/disadvantage
(max 2). The following words are likely to be appropriate
Award 1 mark for each relevant reference to this business (max 2). for this question:
Award 1 mark for each relevant explanation (max 2).  Handmade
 Jewellery
Points might include:  Leaving her job /teacher
 Entrepreneur
Advantages:  Government support
 Keep all the profit [k] from the new business [app] so she has an  Market research
incentive to work harder / so she can decide how to invest it [an]  Market segment
 Can make all/quick decision-making [k] even if it's her brother [app]  Brother
so may be more responsive to changes in demand [an]  Business start-up / new business
 Complete control / own boss [k] less chance for disagreement / no
need to consult anyone before making decisions [an] Other appropriate examples can be credited.
 Has freedom to choose own holidays/work hours [k] to gain a better
work/life balance [an]  Conflict/disagreements is [an] only.
Disadvantages: Do not award:
 No one to share workload/responsibility/control with [k] so less time  Features of unincorporated businesses
to specialise on certain activities [an] such as making jewellery [app] such as unlimited liability, no continuity.
 Access to less finance / partner may provide extra finance [k] so as
need to borrow more/less money [an] or may need more government
support [app]
 Fewer ideas/ less knowledge/experience [k] so less able to compete
[an]
 No one to share any risks / potential loss / costs with [k]

Other appropriate responses should also be credited.

© UCLES 2023 Page 22 of 24


0450/13 Cambridge IGCSE – Mark Scheme May/June 2023
PUBLISHED
Question Answer Marks Notes

4(e) Do you think accessing government sources, such as statistics, is 6 This is a general question so there are no
the best method of market research for a start-up business to use? marks for application.
Justify your answer.
For evaluation to be awarded justification will
Award up to 2 marks for identification of relevant points. Award up to 2 usually follow on from relevant analysis of
marks for relevant development of points. points.
Award up to 2 marks for justified decision as to whether accessing
government sources, such as statistics, is the best method of market Some points can be written as either
research for a start-up business to use. advantage/disadvantage of different methods
but only award once.
Points might include:  For other methods, must identify it, and
Government sources: not simply describe it.
 Free/cheap to collect [k] which can help keep fixed cost low [an]  Out of date ONLY valid for govt. sources.
 Readily available [k] so can make decisions more quickly [an]
 Provides data on a range of topics/shows trends across whole Do not award:
country/market [k] so can make more informed decisions [an]  General comparisons between primary
 May be out-of-date [k] so information may not be relevant to what the and secondary market research e.g. up-to-
business needs to know now [an] date
 Data may not be relevant /not specific to the business [k] leading to  Reasons for carrying out market research
wrong decisions [an] e.g. find out demand/customer needs and
wants.
Other methods might include:  Vague references to more/less accurate.
 Reports from market research agencies [k] but will have to pay for
information [an]
 Questionnaires/surveys [k] as large amounts of information can be
collected [an]
 Focus groups [k] as can provide highly detailed responses [an]
 Interviews [k] but time consuming to carry out [an]
 Online survey [k]
 Observation [k]

Other appropriate responses should also be credited.

© UCLES 2023 Page 23 of 24


0450/13 Cambridge IGCSE – Mark Scheme May/June 2023
PUBLISHED
Question Answer Marks Notes

4(e) Justification might include:

Government statistics are cheap to collect [k] which can help keep fixed
cost low [an]. Another option is questionnaires [k] which would allow the
business to collect large amounts of information [an]. However,
government statistics are better because a new business may not be
able to afford the cost of having the questionnaire designed properly
[eval] so it may be better to use government statistics are likely to be
accurate enough so can still prove helpful [eval].

© UCLES 2023 Page 24 of 24

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