Mark Scheme (Results)

Summer 2023

International GCSE
Business (4BS1 01)
Paper 1: Investigating small businesses
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June 2023
Question Paper Log Number P72670RA
Publications Code 4BS1_01_2306_MS
All the material in this publication is copyright
© Pearson Education Ltd 2023
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.
Question Which one of the following functions is Mark
Number responsible for public relations?
Answer
1 (a) (i) AO1 - 1 mark

The only correct answer is C – Marketing

A – Human resources – this is not the correct

answer as it is responsible for employees
B – Finance – this is not the correct answer as it
is responsible for money
D – Production – this is not the correct answer
as it is responsible for making goods (1)

Question Which one of the following is the difference Mark

Number between cash inflow and cash outflow?
Answer
1 (a) (ii) AO1 - 1 mark

The only correct answer is B – Net cash flow

A – Opening balance – this is not correct as it is

the amount of cash a business expects to have
at the start of a month
C – Closing balance - this is not correct as it is
the amount of cash a business expects to have
at the end of a month
D – Cash flow forecast - this is not correct as it
is the account which predicts expected receipts
and expenses over a future time period (1)
Question Which one of the following is the sector that Mark
Number converts raw materials into products?
Answer
1 (a) (iii) AO1 - 1 mark

The only correct answer is D – Secondary

A – Public – this is not correct as it is business

organisations owned by government
B – Tertiary – this is not correct as it is the
provider of services
C – Primary – this is not correct as it is the
extraction of raw materials from the earth (1)

Question Which one of the following is an example of a Mark

Number good?
Answer
1 (a) (iv) AO1 - 1 mark

The only correct answer is A – Motor vehicle

B – Financial advice - this is not correct as it is

an example of a service
C – Car washing– this is not correct as it is an
example of a service
D – Gardening – this is not correct as it is an
example of a service (1)

Question Which one of the following would be a 3% Mark

Number increase in revenue for Irsi Chocolatier?
Answer
1 (a) (v) AO2 - 1 mark

The only correct answer is C – €320 973.75

A – €317 857.50 – this is not the correct answer

as it is an increase of 2%
B – €319 415.63 – this is not the correct answer
as it is an increase of 2.5%
D – €322 531.88 – this is not the correct answer
as it is an increase of 3.5% (1)
Question Which one of the following is the break-even point Mark
Number when a box of luxury chocolates is priced at
€15.10?
Answer
1 (a) (vi) AO2 - 1 mark

The only correct answer is B – 76

A – 75 – this is not the correct answer as it is

the correct answer minus one
C – 77 – this is not the correct answer as it is
the correct answer plus one
D – 78 – this is not the correct answer as it is
the correct answer plus two (1)

Question Define the term limited liability Mark

Number Answer
1 (b) AO1 - 1 mark
Award 1 mark for a correct definition of limited
liability.

• When the business owner is only

responsible for the original amount of
money invested in the business (1)
(1)

Question Define the term social enterprise Mark

Number Answer
1 (c) AO1 - 1 mark
Award 1 mark for a correct definition of social
enterprise.

• A business that aims to improve human or

environmental well-being (1)
(1)
Question State one way Irsi Chocolatier could use the Mark
Number Boston matrix.
Answer
1 (d) A02 - 1 mark
Award 1 mark for a way Irsi Chocolatier could
use the Boston matrix

• Irsi Chocolatier could use the dog

category to see the chocolates that are
not worth making anymore (1)

NB Do not accept a way that is not in the

context of Irsi Chocolatier.

Accept any other appropriate response.

(1)

Question Calculate, to two decimal Additional Mark

Number places, the cost of these guidance
chocolates after the
discount has been applied.
Answer
1 (e) Award 1 mark for
A02 - 2 marks correctly
substituting
75.50 x 0.06 = 4.53 (1) numbers into
formula.
75.50 – 4.53 = 70.97 (1)
Award full marks for
correct numerical (2)
answer without
working.
Question Explain one benefit for a business that uses test Mark
Number marketing.
Answer
1 (f) A01 - 3 marks

Award 1 mark for identification of a benefit for a

business that uses test marketing, plus 2 further
marks for explaining the benefit, for a maximum
of 3 marks.

• The risk of failure is reduced (1) as the

new product is only tested in one area
gaining feedback from customers (1)
leading to modifications being made
before the final launch (1)

NB Answers that list three benefits with no

explanation will get 1 mark only.

Accept any other appropriate response. (3)

Question Analyse the importance of branding for Irsi Mark
Number Chocolatier.
Indicative content
1 (g) AO2 = 3 marks AO3 = 3 marks

AO2
• As a business that started in 1989 it has
been able to develop and maintain a
strong image for its chocolates and sweets
• Branding against local competing
chocolate shops helps Irsi Chocolatier
stand out
AO3
• This is important as the brand helps create
recognition of the business allowing Irsi
Chocolatier to continue as a long-standing
business
• As the brand becomes stronger a higher
price for the products can be charged and
new products being introduced have a
higher success rate due to its current
branding (6)

Level Mark Descriptor

0 No Rewardable material.
Level 1 1-2 • Limited application of knowledge and
understanding of business concepts and
issues to the business context. (AO2)
• Attempts to deconstruct business
information and/or issues, finding
limited connections between points.
(AO3)
Level 2 3-4 • Sound application of knowledge and
understanding of business concepts and
issues to the business context although
there may be some inconsistencies.
(AO2)
• Deconstructs business information
and/or issues, finding interconnected
points with chains of reasoning,
although there may be some logical
inconsistencies. (AO3)
Level 3 5-6 • Detailed application of knowledge and
understanding of business concepts and
issues to the business context
throughout. (AO2)
• Deconstructs business information
and/or issues, finding detailed
interconnected points with logical chains
of reasoning. (AO3)
Question State one method Irsi Chocolatier could use to Mark
Number improve its competitive position.
Answer
2 (a) A02 - 1 mark

Award 1 mark for a valid method Irsi Chocolatier

could use to improve its competitive position in
the context of the business.

• The chocolate shop may now open on a

Monday (1)

NB Do not accept a method that is not in the

context of Irsi Chocolatier

Accept any other appropriate response. (1)

Question State one way Irsi Chocolatier might extend the Mark
Number life cycle of one of its products.
Answer
2 (b) A02 - 1 mark

Award 1 mark for a valid way Irsi Chocolatier

might extend the life cycle of a product in the
context of the business.

• Irsi Chocolatier can lower the price of its

chocolates (1)

NB Do not accept a way that is not in the

context of Irsi Chocolatier

Accept any other appropriate response. (1)

Question Explain one way a business could use Mark
Number e-newsletters.
Answer
2 (c) A01 - 3 marks

Award 1 mark for identification of a way a

business could use e-newsletters, plus 2 further
marks for explaining this way, for a maximum of
3 marks.

• E-newsletters can be personalised based

on a customer’s previous transactions (1)
it could include special discounts just for
them (1) leading to customers being
motivated to return (1)

NB Answers that list three ways with no

explanation will get 1 mark only.

Accept any other appropriate response. (3)

Question Explain one way a business could use market Mark
Number research information.
Answer
2 (d) A01 - 3 marks

Award 1 mark for identification of a way a

business could use market research information,
plus 2 further marks for explaining this way, for
a maximum of 3 marks.

• To find out what customers think of their

products (1) so they can act on any
relevant feedback given (1) and therefore
better meet the needs of customers (1)

NB Answers that list three ways with no

explanation will get 1 mark only.

Accept any other appropriate response.

(3)
Question Explain one benefit to a business that has a Mark
Number decentralised organisational structure.
Answer
2 (e) A01 - 3 marks

Award 1 mark for the identification of a benefit

to a business that has a decentralised
organisational structure, plus 2 further marks for
explaining that benefit, for a maximum of 3
marks.

• Employees may be better motivated (1)

as they can share their ideas with the
fellow employees (1) and can be part of
the decision making process (1)

NB Answers that list three benefits with no

explanation will get 1 mark only.

Accept any other appropriate response. (3)

Question Irsi Chocolatier is considering using: Mark
Number Option 1: batch production
Option 2: job production.

Justify which one of these two options Irsi

Chocolatier should choose.

Indicative content
2 (f) AO2 = 3 marks AO3 = 3 marks
AO4 = 3 marks

AO2
• Option 1 – batch production would allow
different flavours and shapes of chocolate
lollipops to be made
• Option 2 – Job production allows Irsi
Chocolatier to give customers the option
of personalised chocolate lollipops

AO3
• Option 1 – This method will allow Irsi
Chocolatier to make a certain number of
one type of lollipop and then switch to
another to give customers a range in
lollipops as it does with the chocolates
• Option 2 – This method would give a
consistent approach to its customers of
personalised products

AO4
• Option 1 – However, it could be more
costly depending on the demand for
different shapes and flavours
• Option 2 – However, lollipops are only
small items so customers may not want to
wait for them to be personalised and may
prefer to buy off the shelf to make the
transaction quicker (9)
Level Mark Descriptor
0 No Rewardable material.
Level 1 1-3 • Limited application of knowledge and
understanding of business concepts and
issues to the business context. (AO2)
• Attempts to deconstruct business
information and/or issues, finding
limited connections between points.
(AO3)
• Makes a judgement, providing a simple
justification based on limited evaluation
of business information and issues
relevant to the choice made. (AO4)
Level 2 4-6 • Sound application of knowledge and
understanding of business concepts and
issues to the business context although
there may be some inconsistencies.
(AO2)
• Deconstructs business information
and/or issues, finding interconnected
points with chains of reasoning,
although there may be some logical
inconsistencies. (AO3)
• Makes a judgement, providing a
justification based on sound evaluation
of business information and issues
relevant to the choice made. (AO4)
Level 3 7-9 • Detailed application of knowledge and
understanding of business concepts and
issues to the business context
throughout. (AO2)
• Deconstructs business information
and/or issues, finding detailed
interconnected points with logical chains
of reasoning. (AO3)
• Makes a judgement, providing a clear
justification based on a thorough
evaluation of business information and
issues relevant to the choice made.
(AO4)
Question Define the term fringe benefits. Mark
Number Answer
3 (a) A01 - 1 mark

Award 1 mark for a correct definition of fringe

benefits.

• Additional benefits over and above the

normal wage or salary (1) (1)

Question Outline one way Irsi Chocolatier could keep Mark

Number customer loyalty.
Answer
3 (b) A02 - 2 marks

Award 1 mark for identifying a way Irsi

Chocolatier could keep customer loyalty, plus 1
further mark for linking it to the context of the
business.

• Irsi Chocolatier could promote their

chocolates (1) by introducing a new range
of flavours (1)

NB Do not accept a way that is not in the

context of Irsi Chocolatier.

Accept any other appropriate response. (2)

Question Calculate, to two decimal Additional Mark

Number places, the current ratio. guidance
Answer
3 (c) A02 - 2 marks
Award 1 mark for
26 000/14 852 (1) correctly
= 1.75 (1) substituting
numbers into
formula.

Award full marks

for correct
numerical answer
without working. (2)
Question Analyse the limitations for Irsi Chocolatier of Mark
Number using break-even charts to decide whether it
should sell the new product.
Indicative content
3 (d) AO2 = 3 marks AO3 = 3 marks

AO2
• Break-even charts make the assumption
that all of the new chocolate lollipops will
be sold
• The chart shows the costs for the
chocolate lollipops as a straight line not
taking into account other costs that may
occur along the way

AO3
• This could lead to false data as it does not
take into account any wasted or damaged
stock not sold
• This could lead to overspending if Irsi
Chocolatier have not taken into account
other costs or if customers do not like the
new product (6)

Level Mark Descriptor

0 No Rewardable material.
Level 1 1-2 • Limited application of knowledge and
understanding of business concepts and
issues to the business context. (AO2)
• Attempts to deconstruct business
information and/or issues, finding
limited connections between points.
(AO3)
Level 2 3-4 • Sound application of knowledge and
understanding of business concepts and
issues to the business context although
there may be some inconsistencies.
(AO2)
• Deconstructs business information
and/or issues, finding interconnected
points with chains of reasoning,
although there may be some logical
inconsistencies. (AO3)
Level 3 5-6 • Detailed application of knowledge and
understanding of business concepts and
issues to the business context
throughout. (AO2)
• Deconstructs business information
and/or issues, finding detailed
interconnected points with logical chains
of reasoning. (AO3)
Question Irsi Chocolatier is considering two options: Mark
Number Option 1: train the new employee on-the-job
Option 2: train the new employee off-the-job.
Justify which one of these two options Irsi
Chocolatier should choose.
Indicative content
3 (e) AO2 = 3 marks AO3 = 3 marks
AO4 = 3 marks

AO2
• Option 1 – Offering on-the-job training
allows the new employee to see current
chocolate making techniques
• Option 2 – Offering off-the-job training
allows the new employee to learn new
techniques of producing chocolates from
lecturers at a college

AO3
• Option 1 – This may increase the levels
of production as the employee will be
producing whilst training allowing Irsi
Chocolatier to meet the increased
demand
• Option 2 – Therefore the new employee
could bring new ideas into the business
making it more efficient producing more
in less time

AO4

• Option 1 – However, as Irsi Chocolatier

only has 3 employees there may not be
someone who can dedicate the time to
train the new employee to the standard
required
• Option 2 – However, this can be costly
as the employee will have to attend an
external course rather than learn on the
job (9)

Level Mark Descriptor

 0 No Rewardable material.
Level 1 1-3 • Limited application of knowledge and
understanding of business concepts and
issues to the business context. (AO2)
• Attempts to deconstruct business
information and/or issues, finding
limited connections between points.
(AO3)
• Makes a judgement, providing a simple
justification based on limited evaluation
of business information and issues
relevant to the choice made. (AO4)
Level 2 4-6 • Sound application of knowledge and
understanding of business concepts and
issues to the business context although
there may be some inconsistencies.
(AO2)
• Deconstructs business information
and/or issues, finding interconnected
points with chains of reasoning,
although there may be some logical
inconsistencies. (AO3)
• Makes a judgement, providing a
justification based on sound evaluation
of business information and issues
relevant to the choice made. (AO4)
Level 3 7-9 • Detailed application of knowledge and
understanding of business concepts and
issues to the business context
throughout. (AO2)
• Deconstructs business information
and/or issues, finding detailed
interconnected points with logical chains
of reasoning. (AO3)
• Makes a judgement, providing a clear
justification based on a thorough
evaluation of business information and
issues relevant to the choice made.
(AO4)
Question Calculate, to two Additional guidance Mark
Number decimal places, the
operating profit margin.
Answer
4 (a) A02 - 2 marks
Award 1 mark for
80 282 – 12 692 correctly substituting
= 67 590 (1) numbers into formula.

67 590/330 606 x 100 Award full marks for

= 20.44 (1) correct numerical (2)
answer without working.

Question Analyse the importance of place to Irsi Mark

Number Chocolatier.
Indicative content
4 (b) AO2 – 3 marks AO3 – 3 marks

AO2
• They are located in a busy area with other
competitors nearby and want to make
sure customers are drawn to them over
the other chocolate shops in the area so
will not want to move the location of the
physical shop
• As a small business with only 3
employees, it may want to consider its
online place as well as its physical
chocolate shop to remain competitive

AO3
• With the business having started in 1989 it
is important to have the shop in the same
location so locals and tourists come back
year after year if they have enjoyed the
chocolates they have bought from the
shop
• With it offering a local delivery service and
the market changing Irsi Chocolatier may
put some importance on improving their
online presence to allow customers to buy
from the website as well as find
information about its products (6)
Level Mark Descriptor
0 No Rewardable material.
Level 1 1-2 • Limited application of knowledge and
understanding of business concepts and
issues to the business context. (AO2)
• Attempts to deconstruct business
information and/or issues, finding
limited connections between points.
(AO3)
Level 2 3-4 • Sound application of knowledge and
understanding of business concepts and
issues to the business context although
there may be some inconsistencies.
(AO2)
• Deconstructs business information
and/or issues, finding interconnected
points with chains of reasoning,
although there may be some logical
inconsistencies. (AO3)
Level 3 5-6 • Detailed application of knowledge and
understanding of business concepts and
issues to the business context
throughout. (AO2)
• Deconstructs business information
and/or issues, finding detailed
interconnected points with logical chains
of reasoning. (AO3)
Question Evaluate the impact of Irsi Chocolatier using Mark
Number financial methods of motivation on its employees.
You should use the information provided as well
as your own knowledge of business.
Indicative content
4 (c) AO1 = 3 marks AO2 = 3 marks
AO3 = 3 marks AO4 = 3 marks

AO1
• A bonus can be given to employees
• A promotion could be awarded to an
employee
AO2
• This can motivate the employees is they
meet their targets of making and selling a
certain amount of chocolate each month
• Irsi Chocolatier could promote the hardest
working employee in the chocolate shop

AO3
• This may push employees to work harder
and produce/sell more products in order to
meet their targets therefore increasing the
revenue for Irsi Chocolatier
• This will motivate the employee as they
will be given additional responsibilities
with a potential pay increase making them
more loyal to the business as they are
being promoted for their work

AO4
• However, if the same employee keeps
getting the bonus each month, then this
may demotivate the rest of the employees
if they feel they do not have a chance at
getting the bonus leading to a decrease in
productivity
• However, this would only be for one
employee as the business only currently
has three so the other two may end up
feeling demotivated and unrecognised
possibly leading to an increase in staff
turnover and creating a recruitment issue
for Irsi Chocolatier (12)
Level Mark Descriptor
0 No Rewardable material.
Level 1 1-4
• Demonstrates elements of knowledge
and understanding of business concepts
and issues, with limited business
terminology used. (AO1)
• Limited application of knowledge and
understanding of business concepts and
issues to the business context. (AO2)
• Attempts to deconstruct business
information and/or issues, finding
limited connections between points.
(AO3)
• Makes a judgement, providing a simple
justification based on limited evaluation
of business information and issues
relevant to the choice made. (AO4)
Level 2 5-8 • Demonstrates mostly accurate
knowledge and understanding of
business concepts and issues including
appropriate use of business terminology
in places. (AO1)
• Sound application of knowledge and
understanding of business concepts and
issues to the business context although
there may be some inconsistencies.
(AO2)
• Deconstructs business information
and/or issues, finding interconnected
points with chains of reasoning,
although there may be some logical
inconsistencies. (AO3)
• Makes a judgement, providing a
justification based on sound evaluation
of business information and issues
relevant to the choice made. (AO4)
Level 3 9 - 12 • Demonstrates accurate knowledge and
understanding of business concepts and
issues throughout, including appropriate
use of business terminology. (AO1)
• Detailed application of knowledge and
understanding of business concepts and
issues to the business context
throughout. (AO2)
• Deconstructs business information
and/or issues, finding detailed
interconnected points with logical chains
of reasoning. (AO3)
• Makes a judgement, providing a clear
justification based on a thorough
evaluation of business information and
issues relevant to the choice made.
(AO4)