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The document outlines the Cambridge International AS & A Level Business Paper 1 for February/March 2024, which consists of instructions for answering questions and a mark scheme. Candidates are required to answer five questions, with specific sections for mandatory and optional responses, totaling a maximum of 40 marks. The document also includes guidelines for marking, assessment objectives, and specific content for each question.

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0% found this document useful (0 votes)
16 views470 pages

9609 m24 QP 12 Merged

The document outlines the Cambridge International AS & A Level Business Paper 1 for February/March 2024, which consists of instructions for answering questions and a mark scheme. Candidates are required to answer five questions, with specific sections for mandatory and optional responses, totaling a maximum of 40 marks. The document also includes guidelines for marking, assessment objectives, and specific content for each question.

Uploaded by

MsuBrainBox
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Cambridge International AS & A Level

BUSINESS 9609/12
Paper 1 Business Concepts 1 February/March 2024

1 hour 15 minutes

You must answer on the enclosed answer booklet.


* 3 2 6 9 2 1 6 0 7 1 *

You will need: Answer booklet (enclosed)

INSTRUCTIONS
● Answer five questions in total:
Section A: answer all questions.
Section B: answer one question.
● 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 40.
● 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 (SL) 332138/2
© UCLES 2024 [Turn over
2

Section A

Answer all questions.

1 (a) Define the term quaternary sector. [2]

(b) Explain one factor of production needed for business activity. [3]

2 (a) Define the term dismissal. [2]

(b) Explain one impact on employees of being trade union members. [3]

3 (a) Define the term trade receivables. [2]

(b) Explain one reason why a business may need finance. [3]

4 Analyse one possible impact on a business of operating at below maximum capacity. [5]

Section B

Answer one question only.

EITHER

5 (a) Analyse two limitations of sampling for a business. [8]

(b) ‘Promotion is the most important element of the marketing mix for the success of a parcel
delivery business.’

Evaluate this view. [12]

OR

6 (a) Analyse two barriers to an entrepreneur when starting up a business. [8]

(b) ‘The most important objective of a public sector energy supplier is the environmental
objective.’

Evaluate this view. [12]

© UCLES 2024 9609/12/F/M/24


3

BLANK PAGE

© UCLES 2024 9609/12/F/M/24


4

BLANK PAGE

Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every
reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
publisher will be pleased to make amends at the earliest possible opportunity.

To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge
Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download
at www.cambridgeinternational.org after the live examination series.

Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge
Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge.

© UCLES 2024 9609/12/F/M/24


Cambridge International AS & A Level

BUSINESS 9609/12
Paper 1 Business Concepts 1 February/March 2024
MARK SCHEME
Maximum Mark: 40

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 bef ore marking began, which woul d have
considered the acceptability of alternative answers.

Mark schemes should be read in conjunction with the question paper and the Principal Examiner Report f or
Teachers.

Cambridge International will not enter into discussions about these mark schemes.

Cambridge International is publishing the mark schemes f or the February/March 2024 series f or most
Cambridge IGCSE, Cambridge International A and AS Level components, and some Cambridge O Level
components.

This document consists of 27 printed pages.

© Cambridge University Press & Assessment 2024 [Turn over


9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2024
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 descriptions 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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9609 Business Studies – Paper 1 Annotations

Annotation Description Use

Tick Indicates a point which is relevant and rewardable.

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

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

Application Indicates where application is made to an appropriate business context.

Analysis Indicates where the answer has demonstrated analysis – questions 4, 5a, 5b, 6a and 6b.

Evaluation Indicates where the answer has demonstrated evaluation – (Section B Part (b) questions only).

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

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

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

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

Repetition Indicates where content has been repeated.

Level 1 Indicates a Level 1 point is made.

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Annotation Description Use

Level 2 Indicates a Level 2 point is made.

Level 3 Indicates a Level 3 point is made.

Off Page Used to view PE comments on Practice Scripts only – displayed at the bottom of the screen when clicking the
Comment comments button/toggle.

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Guidance on using levels-based mark schemes

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 recomm endations for
action and implementation.

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Mark Grids for Section A

Used for Q1(a), Q2(a) and Q3(a)

Two marks in total can be awarded for these questions.


AO1 Knowledge and understanding Marks

Knowledge of the term that demonstrates a Clear understanding 2


of the term.

Knowledge of the term that demonstrates a partial understanding 1


of the term.

No creditable response. 0

Used for Q1(b), Q2(b) and Q3(b)

Three marks in total can be awarded for these questions.

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 question. Limited application of one relevant point to a business context.

0 marks 0 marks
No creditable response. No creditable response.

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Question Answer Marks

1(a) Define the term quaternary sector. 2

Indicative content

Responses may include:

AO1 Knowledge and understanding


Clear understanding 2 marks
• economic activity based on the intellectual or knowledge-based economy
• consists of industries providing information services, such as computing, ICT (information and communication
technologies), consultancy (offering advice to businesses) and R&D (research, particularly in scientific fields)

Partial understanding 1 mark


• sector of production
• 4th economic sector
• subset of tertiary sector
• ICT/R&D/computing

Accept all valid responses.

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Question Answer Marks

1(b) Explain one factor of production needed for business activity. 3

Indicative content

Responses may include:

AO1 Knowledge and understanding – 1 mark for identifying one factor of production needed for business activity.
Use of any factor below as an input into the transformation process
• land
• labour
• capital
• enterprise

AO2 Application – 2 marks for a developed explanation of one factor of production needed for business activity.
1 mark for a limited explanation of one factor of production needed for business activity.
• choosing the location of the business, e.g. for shops, to build a factory, natural resources in the land such as water, oil,
fields, woods. Land to fish, grow crops, drill for oil, mine
• people that work in the business such as teachers, joiners, builders or doctors. Employees to work in the business,
skilled and unskilled, their quality and experience
• the money and equipment such as machinery or delivery trucks, used to produce the product or service
• set of skills that develops new ways of doing things or new things to do. Ability to be creative and innovative, having an
idea of how to use the land, labour and capital to make a profit, to create a business/product which will succeed in the
market
• start a business/risk taking/new ideas

Accept all valid responses.

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Question Answer Marks

2(a) Define the term dismissal. 2

Indicative content

Responses may include:

AO1 Knowledge and understanding


Clear understanding of the term dismissal is worth 2 marks.
• the act of removing or terminating the job or contract of employment of an employee
• usually means that the termination was done by the employer and not a voluntary action by the employee
• employee is dismissed for breaking contract/poor conduct

Partial understanding of the term dismissal is worth 1 mark.


• dismissal may also be referred to as termination, firing/fired or discharge
• employee leaves the business (1)
• an employee’s job is lost/finished (1)

Accept all valid responses.

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Question Answer Marks

2(b) Explain one impact on employees of being trade union members. 3

Indicative content

Responses may include:

AO1 Knowledge and understanding – 1 mark for identifying one impact on employees of being trade union members.
• better working conditions
• improved pay
• job security
• ensure equality
• information and support
• empowerment
• motivation
• cost

AO2 Application – 2 marks for developed explanation of one impact on employees of being trade union members. 1
mark for limited explanation of one impact on employees of being trade union members.
• improved facilities, breaks, lighting, heating, safe and secure working conditions
• collective bargaining on behalf of all their members
• protect workers against unfair dismissal and equality and equity in how redundancy is carried out
• support for people claiming compensation for workplace injuries
• provide relevant information regarding established workplace regulations and procedures
• involvement in business decisions
• Maslow safety and security/social needs
• cost of membership/industrial action can result in lost pay

Accept all valid responses.

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Question Answer Marks

3(a) Define the term trade receivables. 2

Indicative content

Responses may include:

AO1 Knowledge and understanding


Clear understanding of the term trade receivables is worth 2 marks.
• the amount owed by a business’ customers/debtors for products supplied (on credit) but not yet paid for
• total amount a company has billed to a customer for goods and services (on credit) delivered but haven’t yet received
payment for

Partial understanding of the term trade receivables is worth 1 mark.


• money owed

Accept all valid responses.

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Question Answer Marks

3(b) Explain one reason why a business may need finance. 3

Indicative content

Responses may include:

AO1 Knowledge and understanding – 1 mark for identifying one reason why a business may need finance
Reasons why a business may need finance include:
• start up a business
• grow/expand the business
• survive
• run the business
• working capital
• buy capital equipment

AO2 Application – 2 marks for developed explanation of one reason why a business may need finance.
1 mark for limited explanation of one reason why a business may need finance.
• start-up finance or capital, purchase assets e.g. premises, equipment, machinery, tools, vehicles
• pay for market research and promotion to develop product and create demand
• need more finance in the early stages before getting established or when facing a crisis
• money to start trading, pay staff wages, utility bills and suppliers on time
• having funds to pay for additional assets, new machinery, new staff, additional raw materials

Accept all valid responses.

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Question Answer Marks

4 Analyse one possible impact on a business of operating at below maximum capacity. 5

Indicative content

Responses may include:

AO1 Knowledge and understanding – 1 mark for identifying one impact on a business of operating at below
maximum capacity
Impacts of operating at below maximum capacity include:
• low output
• wasted resources
• not competitive
• adaptability
• reduced costs

AO2 Application – 2 marks for a developed application of one impact on a business of operating at below maximum
capacity. 1 mark for limited application of one impact on a business of operating at below maximum capacity.
• could produce more output with current resources but isn’t doing so
• available resources are not being used fully e.g. workers and machines idle
• paying fixed costs in areas which are not being fully used

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Question Answer Marks

4 • business is inefficient as resources not fully utilised


• able to respond to unexpected increase in demand
• buying less inventory

AO3 Analysis – 2 marks for developed analysis of one impact on a business of operating at below maximum capacity.
1 mark for limited analysis of one impact on a business of operating at below maximum capacity
• if demand exists the business could be earning more revenue and profit
• fixed costs are spread over lower level of products so cost advantages are lost
• discounts from bulk purchases may not be available so prices may need to increase
• payment on fixed costs, resources not being fully used will increase the average costs of production
• business will be less competitive in the market than its rivals
• business could fail if high costs are not covered by sales of few outputs
• take advantage of opportunities with resources which are not being used
• need less storage space, might use JIT to reduce costs and waste

Accept all valid responses.

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Question Answer Marks

5(a) Analyse two limitations of sampling for a business. 8

There are 8 marks in total for 5(a) – 4 marks for each of the two limitations of sampling for a business:

1 mark for
1 mark for
2 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding – 1 mark for identifying one limitation of sampling for a business.
Limitations of sampling for a business include:
• not totally reliable
• difficulties in selecting a truly representative sample
• sample size may be too small
• chance of bias
• inadequate knowledge in how to carry out sampling
• time-consuming
• expensive
• dishonesty

AO2 Application – 1 mark for application/explanation of one limitation of sampling for a business.
• produces unreliable and inaccurate results if not representative of the whole target market
• can involve biased selection of entire market when choice is not scientific

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Question Answer Marks

5(a) • biased responses due to dishonesty/ignorance/biased questions/lack of understanding by respondents


• not all sampling techniques are truly random
• requires adequate subject specific knowledge of sampling techniques
• involves statistical analysis and calculation of probable error
• complexity of selecting samples
• pay researchers

AO3 Analysis – up to 2 marks for analysis of one limitation. 2 marks for developed analysis of one limitation of
sampling for a business L2 or 1 mark for limited analysis of one limitation of sampling for a business L1
• cannot have total confidence in results and can lead to making incorrect conclusions which affect choices made by
business
• there are several types of sampling methods and choosing the incorrect type will cause errors in results obtained and
lead to wrong decisions being made
• results from sampling need analysing correctly to apply results to the whole target market, which may involve using a
marketing agency if the skills don’t already exist in the business
• if the sample size is too small it may save money in the short term but in the long term may be a waste of money
• time taken to carry out the market research process slows decision making
• opportunity cost of using the money elsewhere in the business

Accept all valid responses.

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Question Answer Marks

5(b) ‘Promotion is the most important element of the marketing mix for the success of a parcel delivery business.’ 12

Evaluate this view.

2 marks for
2 marks for
2 marks for
6 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding – 2 marks for developed knowledge and understanding L2 1 mark for limited
knowledge and understanding L1
• elements of the marketing mix
• specific understanding of promotion

AO2 Application – 2 marks for developed application L2 1 mark for limited application L1
• role/activities of parcel delivery business e.g. delivering on time
• named business e.g. Amazon, DHL, DPD, Parcelforce, may be a small business

AO3 Analysis – 2 marks for developed analysis L2 1 mark for limited analysis L1
• could be B2B or B2C, which affects type of promotion chosen to create more awareness of the business and more
sales
• could be B2B or B2C, which affects which element(s) of MM are most effective
• could look at the benefits and limitations of all elements of MM which could lead to success of the business
• may choose to compare those elements of the MM considered to be more applicable to this type of business e.g. price
or promotion but can discuss product and place

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Question Answer Marks

5(b) • different types of promotion (or any element of the MM) can be carried out at different stages of the product life cycle
• this is a service rather than a good therefore this could affect the choice of promotion type or element of MM
• this may be an international business and size may play a role in achieving success
• candidates may focus on the different types of promotion rather than other parts of the MM, which is a valid response

AO4 Evaluation – 6 marks for

Developed/Supported judgement in context L3 6 marks

Developed/Reasonable evaluative comments in context L3 5 marks

Developed/Supported judgement without context L2 4 marks

Developed/Reasonable evaluative comments without context L2 3 marks

Limited supported judgement L1 2 marks

An attempt to balance the arguments/Weak attempt at evaluative comments L1 1 mark

A judgment/conclusion is made as to whether promotion is the most important element of the marketing mix for the success
of a parcel delivery business.
These judgements/conclusions may be made at any point in the essay, not only in a concluding section.
• what would be classed as success for this type of business?
• would success be increasing number of sales, value of sales, market share?
• how important is promotion for this type of business? Would it matter whether the delivery is B2B or B2C?
• is the delivery business irrelevant to the product that is contained within the parcel?
• what is most important regarding delivery to the customer? Speed, cost, quality of service, security, protection?
• which elements of the MM can effectively be used? Candidates may find it difficult to apply all aspects of the MM but it
can be done. This could be a differentiating factor in this evaluation.
• the choice of the type of promotion or element of the MM may depend on how well known the business already is and
what its objectives are.

Accept all valid responses.

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Question Answer Marks

6(a) Analyse two barriers to an entrepreneur when starting up a business. 8

8 marks in total for Q6(a): 4 marks for each of the two barriers to an entrepreneur when starting up a business.

These 4 marks consist of:


1 mark for
1 mark for
2 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding – 1 mark for identifying one barrier


• identifying business opportunities
• obtaining finance
• finding a location
• competition
• building a customer base

AO2 Application – 1 mark for application of one barrier


• could be based own hobbies, previous experience, ability to carry out market research, franchise opportunity
• may have insufficient savings, not aware of sources of finance available, not trading records to present to a bank, poor
business plan
• working from home could be easiest but premises may be needed for some businesses
• difficult to enter a market with established competitors
• need to stand out to attract consumers

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Question Answer Marks

6(a) AO3 Analysis – up to 2 marks for analysis of each barrier. 2 marks for developed analysis of each barrier L2 1
mark for limited analysis of each barrier L1
• can be easy to start a business on a small scale using own knowledge but the demand for the product may be limited
and therefore it can be difficult to earn enough to survive
• finance is more difficult to obtain for an entrepreneur than it is for an established business. It is important to have the
finance to start the business, perhaps using less traditional sources such as crowd funding or micro finance
• whether the entrepreneur can work from home depends on the type of business. A service business such as website
designer or having no need to communicate with customers face-to-face e.g. e-commerce can easily be carried out at
home and can be cheaper, although there is no separation between work and private life or tensions might arise
between other members of the household. Other businesses must have premises with the appropriate equipment such
as a hairdresser or retail store
• need a product that is unique to enter a new market as established competitors have cost advantages, loyal
customers, greater reputation and more money to spend on promotion.
• the entrepreneur could provide more personal customer service, knowledgeable pre- and after-sales service,
personalised products.

Accept all valid responses.

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Question Answer Marks

6(b) ‘The most important objective of a public sector energy supplier is the environmental objective.’ 12

Evaluate this view.

2 marks for
2 marks for
2 marks for
6 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding – 2 marks for developed knowledge and understanding L2 1 mark for limited
knowledge and understanding L1
• objectives
• public sector
• environmental objective

AO2 Application – 2 marks for developed application L2 1 mark for limited application L1
• energy supplier
• utility e.g. gas, electricity, oil, solar energy, wind power
• pollution e.g. air, noise, chemical

AO3 Analysis – 2 marks for developed analysis L2 1 mark for limited analysis L1
• objectives may vary in the public sector. Usually equitable provision of merit goods/services
• objectives of a public sector business are unlikely to be driven by competition or profit so prices can be kept lower
• there is opportunity cost of spending money on each area of provision e.g. education, defence, healthcare
• energy supply is important in all countries and to businesses and consumers, so demand is high
• a public sector business is funded by the government and is likely to have a national supply network, making it easier
to meet the high demand

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PUBLISHED
Question Answer Marks

6(b) • there is the potential for exploitation of the environment e.g. China and coal
• public sector may have to meet national/international objectives regarding pollution, renewable fuels, sustainability
• the government has many demands on its funding and therefore the service given by a public sector energy supplier
could be less efficient e.g. power cuts

AO4 Evaluation – 6 marks for

Developed/Supported judgement in context L3 6 marks

Developed/Reasonable evaluative comments in context L3 5 marks

Developed/Supported judgement without context L2 4 marks

Developed/Reasonable evaluative comments without context L2 3 marks

Limited supported judgement L1 2 marks

An attempt to balance the arguments/Weak attempt at evaluative comments L1 1 mark

A judgment/conclusion is made as to whether the most important objective of a public sector energy supplier is the
environmental objective.
These judgements/conclusions may be made at any point in the essay, not only in a concluding section.

• there are different sources of energy e.g. some countries are fossil fuel dependent whilst others have the ability to
develop new methods e.g. wind, water, solar
• how wealthy is the country to develop these sources using the public sector?
• does the public sector see energy supply as its most important priority?
• is the private sector more likely to thrive where customers are influenced by environmental aspects rather than cost of
energy?
• how easy is it for the public sector to provide an energy supply at an affordable price e.g. if price of fuel rises, will the
government have to subsidise the cost to the consumer to maintain standard of living?
• should the most important objective be providing energy to all parts of the country regardless of the opportunity cost?

Accept all valid responses.

© Cambridge University Press & Assessment 2024 Page 25 of 27


9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2024
PUBLISHED
Mark Grids for Section B

Used for Q5(a) and Q6(a)

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

0 0 marks 0 marks 0 marks


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

© Cambridge University Press & Assessment 2024 Page 26 of 27


9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2024
PUBLISHED

Mark Grids for Section B

Used for Q5(b) and Q6(b)

AO1 Knowledge and


AO2 Application AO3 Analysis AO4 Evaluation
Level 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 of Developed application of Developed analysis Developed evaluation
relevant key term(s) relevant point(s) to the that identifies connections • A developed judgement/conclusion is made.
and/or factor(s) is used to business context. between causes, impacts • Developed evaluative comments which
answer the question. and/or consequences. 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) to the that identifies connections • A judgement/conclusion is made with limited
and/or factor(s) is used to business context. between causes, impacts supporting comment/evidence.
answer the question. and/or consequences. • An attempt is made to balance the
arguments.

0 0 marks 0 marks 0 marks 0 marks


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

© Cambridge University Press & Assessment 2024 Page 27 of 27


Cambridge International AS & A Level

BUSINESS 9609/11
Paper 1 Business Concepts 1 May/June 2024

1 hour 15 minutes

You must answer on the enclosed answer booklet.


* 1 0 9 3 6 3 2 9 3 6 *

You will need: Answer booklet (enclosed)

INSTRUCTIONS
● Answer five questions in total:
Section A: answer all questions.
Section B: answer one question.
● 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 40.
● 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 (SL) 344505/3
© UCLES 2024 [Turn over
2

Section A

Answer all questions.

1 (a) Define the term outsourcing. [2]

(b) Explain one purpose of JIC (Just in Case) inventory management. [3]

2 (a) Define the term salary. [2]

(b) Explain one impact on a business of training its employees. [3]

3 (a) Define the term industrial marketing. [2]

(b) Explain one implication to a business of market growth. [3]

4 Analyse one impact on the workforce of effective communication of business objectives. [5]

Section B

Answer one question only.

EITHER

5 (a) Analyse two limitations of using the number of employees to measure the size of a business.
[8]

(b) Evaluate whether small retail businesses have an important role in the economy. [12]

OR

6 (a) Analyse two factors which may influence a business’s choice of sources of finance. [8]

(b) Evaluate whether setting budgets is important to the success of a farming business. [12]

© UCLES 2024 9609/11/M/J/24


3

BLANK PAGE

© UCLES 2024 9609/11/M/J/24


4

BLANK PAGE

Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every
reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
publisher will be pleased to make amends at the earliest possible opportunity.

To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge
Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download
at www.cambridgeinternational.org after the live examination series.

Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge
Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge.

© UCLES 2024 9609/11/M/J/24


Cambridge International AS & A Level

BUSINESS 9609/11
Paper 1 Business Concepts 1 May/June 2024
MARK SCHEME
Maximum Mark: 40

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 2024 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 29 printed pages.

© Cambridge University Press & Assessment 2024 [Turn over


9609/11 Cambridge International AS & A Level – Mark Scheme May/June 2024
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 descriptions 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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PUBLISHED
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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9609 Business Studies – Paper 1 Annotations

Annotation Description Use

Tick Indicates a point which is relevant and rewardable.

Cross Indicates a point which is inaccurate/irrelevant and not


rewardable.

Knowledge Indicates knowledge and understanding of the concepts and


issues relating to the question.

Application Indicates where application is made to an appropriate business


context.

Analysis Indicates where the answer has demonstrated analysis –


questions 4, 5a, 5b, 6a and 6b.

Evaluation Indicates where the answer has demonstrated evaluation –


(Section B Part (b) questions only).

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

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

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

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

Repetition Indicates where content has been repeated.

Level 1 Indicates a Level 1 point is made.

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Annotation Description Use

Level 2 Indicates a Level 2 point is made.

Level 3 Indicates a Level 3 point is made.

Off Page Used to view PE comments on Practice Scripts only –


Comment displayed at the bottom of the screen when clicking the
comments button/toggle.

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Guidance on using levels–based mark schemes

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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Mark Grids for Section A

Used for Q1(a), Q2(a) and Q3(a)

Two marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these marks.

AO1 Knowledge and understanding Marks

Knowledge of the term that demonstrates a clear understanding of the term. 2

Knowledge of the term that demonstrates a partial understanding of the term. 1

No creditable response. 0

Used for Q1(b), Q2(b) and Q3(b)

Three marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these marks.

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 question. Limited application of one relevant point to a business context.

0 marks 0 marks
No creditable response. No creditable response.

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PUBLISHED
Question Answer Marks

1(a) Define the term outsourcing. 2

Indicative content

Responses may include:

AO1 Knowledge and understanding


Clear understanding 2 marks
 when a business uses another business to carry out some of its activities

Partial understanding 1 mark


 the use by a business of another organisation

Accept all valid responses.

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9609/11 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

1(b) Explain one purpose of JIC (Just in Case) inventory management. 3

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for identifying one purpose of JIC

 inventory management method that holds excess inventory (buffer stock)


 so that a business always has inventory when required.
 never runs out of inventory
 can meet any increase in customer demand (spike)
 can respond to supply delays/interruptions.

AO2 Application
2 marks for a developed application/explanation of one purpose of JIC
1 mark for a limited application/explanation of one purpose of JIC

 Extra inventory is available in case there are any problems with supply or a spike in demand
 The business can continue to produce until the next delivery is received
 There will be no delay in meeting the demands of customers
 If demand increases unexpectedly, there is enough inventory to increase supply until the next delivery of inventory

Accept all valid responses.

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Question Answer Marks

2(a) Define the term salary. 2

Indicative content

Responses may include:

AO1 Knowledge and understanding


Clear understanding 2 marks
 an amount of income paid to an employee/annual/over a set period/ often on a monthly basis(2)

Partial understanding 1 mark


 money paid to an employee

Accept all valid responses.

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Question Answer Marks

2(b) Explain one impact on a business of training its employees. 3

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for identifying ONE impact on a business of training its employees

 improves employee performance/efficiency/flexibility


 improves employee morale and productivity
 business develops the right workforce
 business gains good reputation
 lower labour turnover
 costs money and time
 trained employees may leave
 can disrupt work while training takes place
 puts extra pressure on managers as they do the work of those being trained

2(b) AO2 Application


2 marks for developed explanation of one impact on a business of training its employees
1 mark for limited explanation of one impact on a business of training its employees

 new skills and knowledge improve the competitive position of the business
 employees are loyal, stay with the business and produce more and better products
 training is a method of motivation
 trained workforce will help to achieve objectives
 business will find it easier to retain and recruit employees due to respected reputation
 resources used in training could be used elsewhere in the business
 business risks spending resources training employees who then leave taking skills with them
 work stops when employees receive training
 managers have to take

Accept all valid responses.

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Question Answer Marks

3(a) Define the term industrial marketing. 2

Indicative content

Responses may include:

AO1 Knowledge and understanding


Clear understanding 2 marks
 promoting/selling/marketing goods and services to other business’s rather than to individual customers (B2B)

Partial understanding 1 mark


 marketing to other industries

Accept all valid responses.

3(b) Explain one implication to a business of market growth. 3

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for identifying one implication to a business of market growth

 more potential customers for the business


 more potential sales for the business
 more competitors in the market
 production process may need to change
 may need to take on more employees
 may need to invest more in machines
 may need to change suppliers
 may experience economies/diseconomies of scale

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Question Answer Marks

3(b) AO2 Application


2 marks for developed explanation of one implication to a business of market growth
1 mark for limited explanation of one implication to a business of market growth

 more demand from new customers to the market


 a business can gain more sales revenue without its market share changing
 may attract other competitors which see the same opportunity
 may affect the type of pricing and promotion needed if new customers or locations are involved
 recruitment and selection of additional employees becomes necessary
 more capital investment to provide more machines
 production costs fall/rise as levels of output increase

Accept all valid responses.

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Question Answer Marks

4 Analyse one impact on the workforce of effective communication of business objectives. 5

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for identifying one impact on the workforce of effective communication of business objectives

 employees now know what they are doing and why


 employees feel more involved
 employees are more confident at work
 knowing the objectives can be very motivating
 business sections/departments work better together – more team working.

AO2 Application
2 marks for a developed application of one impact on the workforce of effective communication of business objectives
1 mark for limited application of one impact on the workforce of effective communication of business objectives

 sets workers a target, so they have something to aim for


 employees now better understand their roles
 objectives are turned into individual targets
 employees given a sense of direction

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Question Answer Marks

4 AO3 Analysis
2 marks for developed analysis of one impact on the workforce of effective communication of business objectives
1 mark for limited analysis of one impact on the workforce of effective communication of business objectives

 communication of objectives throughout the organisation helps to ensure everyone is working towards the same aim
 if employees feel that the objectives are realistic, they are more likely to be committed to achieving them, motivated
 if employees are not aware of the objectives, they cannot work towards them and the business will not achieve them
 if a target is forced on an employee or they do not agree with it, they may not try to achieve it or may leave the
business
 if employees are aware of a target they can be reviewed and rewarded for achieving it e.g. with promotion

Accept all valid responses.

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Question Answer Marks

5(a) Analyse two limitations of using the number of employees to measure the size of a business. 8

There are 8 marks in total for Q5(a) – 4 marks for each of the two limitations of sampling for a business:

1 mark for
1 mark for
2 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for identifying one limitation of using the number of employees to measure the size of a business

 there are many ways to measure the size of a business and most are more reliable than using the number of
employees
 business that relies on machines rather than people will be undervalued–fails to take account of capital investment
 does not take account of the assets of a business
 does not take account of the cash flow of a business
 no reference to revenue, output, sales, profit
 workers can be full time or part time
 workers can be outsourced
 workers can be multi-skilled so fewer needed

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Question Answer Marks

5(a) AO2 Application


1 mark for application/explanation of one limitation of using the number of employees to measure the size of a business

 Large business may have more employees than a small business – a franchise vs a local shop
 large capital intensive business may have few employees – car production done by robots
 Large IT/internet businesses often have few employees
 Small business may have many employees – labour intensive clothing production factory

AO3 Analysis
2 marks for developed analysis of one limitation of using the number of employees to measure the size of a business L2

1 mark for limited analysis of one limitation of using the number of employees to measure the size of a business L1

 number of employees can be misleading depending on whether business is labour or capital intensive
 one measure used on its own can give a misleading measurement of size
 number of employees may be less important than other measures such as market share, turnover

Accept all valid responses.

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Question Answer Marks

5(b) Evaluate whether small retail businesses have an important role in the economy. 12

There are 12 marks for Q5(b):

2 marks for
2 marks for
2 marks for
6 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


2 marks for developed knowledge L2
1 mark for limited knowledge L1

 small retail business likely to be local


 small retail businesses buy from producers and sell to customers
 provide job opportunities
 stimulate income through trade
 compete with and support larger businesses
 small retail business trade leads to tax revenues

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Question Answer Marks

5(b) AO2 Application


2 marks for developed application L2
1 mark for limited application L1

 retailers buy goods and sell them to customers on a small scale–tertiary sector
 examples of small retail businesses e.g. local shop, convenience store, family business selling food
items/clothes/flowers
 names of small retailers e.g. Walmart supermarkets, 7UP stores, BATA shoe stores
 serve local consumers and niche products/markets

AO3 Analysis
2 marks for developed analysis L2
1 mark for limited analysis L1

 job creation in small villages and towns – increase standards of living


 small business numbers may be high, but people employed may be low so limited effect on unemployment
 sole traders/family businesses are common type of small business
 majority of businesses in many countries are small but play a significant economic role
 stimulate local and national economy – government collect taxes from small retailers and their customers
 provide greater choice to consumers with niche products/innovative ideas
 large businesses tend to sell many products which are standardised, so consumer choice is limited
 niche products often important to small businesses and communities e.g. wedding dresses and cakes
 increase competitiveness in economy as alternative to large businesses
 small businesses can grow into large businesses
 growth potential for small business may be high which promotes economic growth
 many small businesses sell products to large businesses so help economy to develop production and trade
 retailers often demonstrate strong entrepreneurial skills

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Question Answer Marks

5(b) AO4 Evaluation


6 marks for evaluation

Developed/Supported judgement in context L3 6 marks

Developed/Reasonable evaluative comments in context L3 5 marks

Developed/Supported judgement without context L2 4 marks

Developed/Reasonable evaluative comments without context L2 3 marks

Limited supported judgement L1 2 marks

An attempt to balance the arguments/Weak attempt at evaluative comments L1 1 mark

A judgement/conclusion is made as to whether small retail businesses have an important role in the economy.
These judgements/conclusions may be made at any point in an essay, not only in a concluding section.

 Importance of small business may depend on what the retailer is selling. Personalised services – lawyers,
photographers and hairdressers are more likely to be small and the employees are skilled.
 importance of different types of business may depend on what the consumers in a market want. If they are prepared to
pay high prices for unique items then small, niche retailers may be very important.
 Where cheap and standardised products are what consumers demand large businesses may be more important.
 Quality in particular is more likely to be higher in small retailers e.g. customer service, as they differentiate themselves
from large retailers in this way, making their contribution to niche markets higher than large businesses
 Small businesses may need more support e.g. government grants and therefore their importance in the economy may
depend on their importance to the government
 Small business in the primary or secondary sector may be more important to the economy of some countries than
small retail businesses
 Large business more likely to be well known, branded and have high promotion so their contribution to the economy in
terms of employment and taxation revenue may be higher

Accept all valid responses.

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9609/11 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

6(a) Analyse two factors which may influence a business’ choice of sources of finance. 8

There are 8 marks in total for Q6(a) – 4 marks for each of the two factors which may influence a business’ choice of
sources of finance.

These 4 marks consist of :


1 mark for
1 mark for
2 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for identifying one factor which may influence a business’ choice of sources of finance

 reason for needing finance


 short term or long term
 availability of finance
 cost of the finance
 reputation of business
 past trading record
 amount of finance needed
 amount of control willing to accept
 cash flow and ability to pay back
 relationship with financial institutions

© Cambridge University Press & Assessment 2024 Page 23 of 29


9609/11 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

6(a) AO2 Application


1 mark for application/explanation of one factor which may influence a business’ choice of sources of finance

 Start-up finance, expansion, product development – why is it needed?


 suitable source of finance to suit the business needs e.g. owner’s savings, crowdfunding, overdraft, trade credit, loan,
share capital, retained earnings
 relationship with potential providers

AO3 Analysis
2 marks for developed analysis of one factor L2
1 mark for limited analysis of one factor L1

 start–up business with no established record or reputation may have to rely on owner’s savings or crowdfunding as not
attractive to other investors
 small established business wanting to grow may take on more partners/owners but limit this to keep control with
original owner
 finance such as overdraft or trade credit will give short term boost to working capital to cover temporary problems
 business with trading record may gain a loan from the bank to pay back long term with interest
 limited company may sell more shares to raise larger amount of finance but will further dilute ownership of existing
owners
 profitable business may have retained earnings to use without diluting ownership further or borrowing money

Accept all valid responses.

© Cambridge University Press & Assessment 2024 Page 24 of 29


9609/11 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

6(b) Evaluate whether setting budgets is important to the success of a farming business. 12

There are 12 marks for 6(b):

2 marks for
2 marks for
2 marks for
6 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


2 marks for developed knowledge L2
1 mark for limited knowledge L1

 budgets – role and purpose


 variance from the budget
 business factors which may be important to success

AO2 Application
2 marks for developed application L2
1 mark for limited application L1

 farming items – arable, crops, fruit, livestock, cattle, dairy, sheep, chicken , fertiliser, farm machinery

© Cambridge University Press & Assessment 2024 Page 25 of 29


9609/11 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

6(b) AO3 Analysis


2 marks for developed analysis L2
1 mark for limited analysis L1
 budgets encourage forward thinking/planning so can plan for future financial needs
 provide discipline and a framework for planning and control
 many farmers unlikely to have financial knowledge of setting budgets but are still successful due to experience
 farming businesses may set budgets, but this may be informal as part of their normal seasonal planning
 a farm may operate for survival and consider budgeting irrelevant e.g. small, subsistence farm
 profit driven farm may see budgets as essential for achieving profit
 external conditions are often unpredictable in farming making budgeting difficult
 even if variances are monitored, natural conditions may make changes to budget impossible/difficult
 may give stakeholders of large commercial farms the profit they judge success by

AO4 Evaluation
6 marks for evaluation

Developed/Supported judgement in context L3 6 marks

Developed/Reasonable evaluative comments in context L3 5 marks

Developed/Supported judgement without context L2 4 marks

Developed/Reasonable evaluative comments without context L2 3 marks

Limited supported judgement L1 2 marks

An attempt to balance the arguments/Weak attempt at evaluative comments L1 1 mark

© Cambridge University Press & Assessment 2024 Page 26 of 29


9609/11 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

6(b) A judgement/conclusion is given as to the importance of budgets for the success of a farming business
These judgements/conclusions may be given at any point in an essay, not just in a concluding section.

 effectiveness of budget may only be seen at the end of the trading period, which can be a long time in some types of
farming
 how is success measured – survival/security for family members/better quality of produce/increased number of
customers/increased revenue gained/amount of profit/ability to compete in the market and gain market
share/expansion of the business/ improved reputation?
 it is meaningless to set budgets if the information included in them is badly researched or recorded. Does the business
have suitable employees and experience to produce budgets correctly?
 Is the success of a farming business, especially a small one, more dependent on the experience of farming rather than
knowledge of finance and budgeting?

Accept all valid responses.

© Cambridge University Press & Assessment 2024 Page 27 of 29


9609/11 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Mark Grids for Section B

Used for Q5(a) and Q6(a)

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.
 Developed analysis that identifies connections between
causes, impacts and/or consequences of one point.

1 1–2 marks 1–2 marks 1–2 marks


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

0 0 marks 0 marks 0 marks


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

© Cambridge University Press & Assessment 2024 Page 28 of 29


9609/11 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Mark Grids for Section B

Used for Q5(b) and Q6(b)

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

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

0 0 marks 0 marks 0 marks 0 marks


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

© Cambridge University Press & Assessment 2024 Page 29 of 29


Cambridge International AS & A Level

BUSINESS 9609/12
Paper 1 Business Concepts 1 May/June 2024

1 hour 15 minutes

You must answer on the enclosed answer booklet.


* 6 9 1 8 1 3 1 8 2 6 *

You will need: Answer booklet (enclosed)

INSTRUCTIONS
● Answer five questions in total:
Section A: answer all questions.
Section B: answer one question.
● 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 40.
● 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 (SL) 333927
© UCLES 2024 [Turn over
2

Section A

Answer all questions.

1 (a) Define the term takeover. [2]

(b) Explain one disadvantage to a business of external growth. [3]

2 (a) Define the term job description. [2]

(b) Explain one benefit to a business of internal recruitment. [3]

3 (a) Define the term job production. [2]

(b) Explain one benefit to a business of capital intensive operations. [3]

4 Analyse one reason why product differentiation may be important to a business. [5]

Section B

Answer one question only.

EITHER

5 (a) Analyse two limitations to a business of using contribution costing. [8]

(b) Evaluate whether working capital is the most important source of finance for a start-up
furniture manufacturer. [12]

OR

6 (a) Analyse two benefits to a business of low labour turnover. [8]

(b) ‘Work-life balance is the most important human resource management (HRM) factor for
employee welfare in a local bus service.’

Evaluate this view. [12]

© UCLES 2024 9609/12/M/J/24


3

BLANK PAGE

© UCLES 2024 9609/12/M/J/24


4

BLANK PAGE

Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every
reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
publisher will be pleased to make amends at the earliest possible opportunity.

To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge
Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download
at www.cambridgeinternational.org after the live examination series.

Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge
Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge.

© UCLES 2024 9609/12/M/J/24


Cambridge International AS & A Level

BUSINESS 9609/12
Paper 1 Business Concepts 1 May/June 2024
MARK SCHEME
Maximum Mark: 40

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 2024 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 30 printed pages.

© Cambridge University Press & Assessment 2024 [Turn over


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2024
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 descriptions 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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9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2024
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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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9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
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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9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
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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9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
9609 Business Studies – Paper 1 Annotations

Annotation Description Use

Tick Indicates a point which is relevant and rewardable.

Cross Indicates a point which is inaccurate/irrelevant and not


rewardable.

Knowledge Indicates knowledge and understanding of the concepts and


issues relating to the question.

Application Indicates where application is made to an appropriate business


context.

Analysis Indicates where the answer has demonstrated analysis –


questions 4, 5a, 5b, 6a and 6b.

Evaluation Indicates where the answer has demonstrated evaluation -


(Section B Part (b) questions only).

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

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

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

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

Repetition Indicates where content has been repeated.

Level 1 Indicates a Level 1 point is made.

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9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Annotation Description Use

Level 2 Indicates a Level 2 point is made.

Level 3 Indicates a Level 3 point is made.

Off Page Used to view PE comments on Practice Scripts only –


Comment displayed at the bottom of the screen when clicking the
comments button/toggle.

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9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Guidance on using levels-based mark schemes

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.

© Cambridge University Press & Assessment 2024 Page 8 of 30


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Mark Grids for Section A

Used for Q1(a), Q2(a) and Q3(a)

Two marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these marks.

AO1 Knowledge and understanding Marks

Knowledge of the term that demonstrates a clear understanding of the 2


term.

Knowledge of the term that demonstrates a partial understanding of 1


the term.

No creditable response. 0

Used for Q1(b), Q2(b) and Q3(b)

Three marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these marks.

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 context.
question.

0 marks 0 marks
No creditable response. No creditable response.

© Cambridge University Press & Assessment 2024 Page 9 of 30


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

1(a) Define the term takeover. 2

Indicative content

Responses may include:

AO1 Knowledge and understanding


Clear understanding 2 marks
 A takeover is when one business/investor buys / acquires / controls / absorbs / integrates another business, often by
buying a majority stake in the target company.

Partial understanding 1 mark


 Purchasing a business

Accept all valid responses.

© Cambridge University Press & Assessment 2024 Page 10 of 30


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

1(b) Explain one disadvantage to a business of external growth. 3

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for identifying one disadvantage to a business of external growth

 May require considerable additional expenditure


 May lead to increased debt
 May cause problems for existing management
 Might lead to loss of control of core business
 Disruptive to original business – culture clash
 Growth may be too rapid – diseconomies of scale
 May be more regulations/different management culture in a different market

AO2 Application
2 marks for developed application/explanation of one disadvantage to a business of external growth
1 mark for limited application/explanation of one disadvantage to a business of external growth

 Can be very expensive to take over another business – which could raise business costs.
 Managers may lack the experience to deal with a different business – which could lead to poor decision making and
inefficiency.
 Can lead to loss of control of the business – especially if it is a hostile takeover.
 Can lead to culture clashes – whereby employees may find it difficult to adapt and leave.
 Different management styles may be incompatible – which can make decision making difficult.
 May need to adapt different marketing strategies – which can be very expensive.
 Can lead to an increase in long-term debt – which can lead to a higher gearing ratio.
 Can lead to regulatory problems – whereby the government may prevent a merger or takeover from happening.

Accept all valid responses.

© Cambridge University Press & Assessment 2024 Page 11 of 30


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2024
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Question Answer Marks

2(a) Define the term job description. 2

Indicative content

Responses may include:

AO1 Knowledge and understanding


Clear understanding 2 marks
 A document/list/explanation/statement/indication setting out the tasks/duties/features/role/responsibilities/requirements
of a job NOT the qualifications/skills/attributes of a person doing a job.

Partial understanding 1 mark


 What the job involves/requires

Accept all valid responses.

© Cambridge University Press & Assessment 2024 Page 12 of 30


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

2(b) Explain ONE benefit to a business of internal recruitment. 3

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for identifying one benefit to a business of internal recruitment

 Applicants well known to the business / know how the business operates
 Applicants already integrated into working culture
 Internal recruitment takes less time / more efficient
 Internal recruitment likely cheaper than external recruitment
 Acts as an incentive to employees in a business / increases motivation
 May mean less disruption to existing employees

AO2 Application
2 marks for developed explanation of one benefit to a business of internal recruitment
1 mark for limited explanation of one benefit to a business of internal recruitment

 Applicants may already be known to the selection team – so they know they would be able to do the job, therefore
reduced risk.
 Culture of the organisation would already be well understood by the applicants – so they know what is expected of
them – reduced need for induction training or time to adjust.
 It is often quicker than external recruitment/advertising – so the business does not have to wait excessively long for the
candidate to start contributing.
 Likely to be cheaper than using recruitment agencies – therefore saving costs
 Gives internal staff a career structure and a chance to progress – which might reduce labour turnover.
 Reduces the likelihood that staff will have to adapt to the new recruit’s style of management – as they are already
familiar with the person.

Accept all valid responses.

© Cambridge University Press & Assessment 2024 Page 13 of 30


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2024
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Question Answer Marks

3(a) Define the term job production. 2

Indicative content

Responses may include:

AO1 Knowledge and understanding


Clear understanding 2 marks
 The production process where a one-off/unique/bespoke product is made/for a customer/product completed before the
next one is started

Partial understanding 1 mark


 Where only one item is produced

Accept all valid responses.

© Cambridge University Press & Assessment 2024 Page 14 of 30


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

3(b) Explain ONE benefit to a business of capital intensive operations. 3

Indicative content

Responses may include:

AO1 Knowledge and understanding – 1 mark for identifying one benefit to a business of capital intensive operations

 May well lead to economies of scale


 Machines may well guarantee greater conformity of quality
 Machines more efficient than labour
 Production costs reduced
 Reduces need for labour resource
 Increases output/productivity

AO2 Application
2 marks for developed application/explanation of one benefit to a business of capital intensive operations
1 mark for limited application/explanation of one benefit to a business of capital intensive operations

 Substantial opportunities for scale economies – therefore unit cost reductions


 Quality can be standardised so products are the same every time – which reduces human errors and customer
complaints
 Machines can work continuously 24/7 – therefore increased output enabling large orders to be met
 Less employees are needed – therefore reduced labour/wage costs
 Higher productivity – more effective utilisation of resources

Accept all valid responses.

© Cambridge University Press & Assessment 2024 Page 15 of 30


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

4 Analyse one reason why product differentiation may be important to a business. 5

Note: no marks can be awarded if a relevant reason why product differentiation may be important to a business has not
been identified

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for identifying one reason why product differentiation may be important to a business

 May give a product a USP/distinctive/unique feature


 May increase customer demand for the product
 May lead to an increase in market share
 May strengthen the brand
 Target niche market
 Allows premium prices to be set
 Increases morale/motivation of employees

© Cambridge University Press & Assessment 2024 Page 16 of 30


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Question Answer Marks

4 AO2 Application
2 marks for a developed application of one reason why product differentiation may be important to a business
1 mark for limited application of one reason why product differentiation may be important to a business

 Increased competitiveness
 A product is made distinctive so it stands out from competitors’ products
 Assumes a USP in the eyes of consumers
 Consumers now prefer to buy this product
 Higher sales and possibly increased share of market
 Stronger brand image and loyalty
 A distinctive USP supports premium prices
 Product success/increased employee motivation

AO3 Analysis
2 marks for developed analysis of one reason why product differentiation may be important to a business
1 mark for limited analysis of one reason why product differentiation may be important to a business

 Builds brand loyalty due to perceived differentiation from alternative brands – which leads to repeat customers
 Enables premium price to be charged – which can result in increased profit margins.
 Increased competitiveness – lead to higher sales and increased market share.
 Attract investment from shareholders – which increases market value of business.
 Enables businesses to compete in areas other than price – such as quality or taste which broadens potential areas for
success
 Customers perceive there to be no substitute for the product – enabling business to gain a market advantage via USP

Accept all valid responses.

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Question Answer Marks

5(a) Analyse two limitations to a business of using contribution costing. 8

There are 8 marks in total for Q5(a) – 4 marks for each of the two limitations to a business of using contribution costing:

1 mark for
1 mark for
2 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for identifying one limitation to a business of using contribution costing

 It allocates only direct costs to cost/profit centres


 Overhead costs not apportioned at all
 May provide a misleading picture of profitability
 It overlooks the impact of fixed costs
 Not acceptable for external financial reporting
 Difficult to allocate costs accurately across a full product range
 Not an appropriate method for price determination
 Unsuitable for capital intensive operations/multi-product operations

© Cambridge University Press & Assessment 2024 Page 18 of 30


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Question Answer Marks

5(a) AO2 Application


1 mark for application of one limitation to a business of using contribution costing

 Difficult to analyse as not all costs can be easily split into fixed and variable costs.
 Poor method for setting prices – as prices are based on contribution which does not cover fixed costs.
 It violates the principle of matching costs with revenues
 Has limited scope – so businesses with high automation have high levels of fixed costs, so not suitable to capital
intensive industries.
 Can lead to unrealistic financial statements – as exclusion of fixed overheads in valuation of stock.
 Firms might find it difficult to cover all costs and earn a fair return on capital employed

AO3 Analysis
2 marks for developed analysis of one limitation to a business of using contribution costing L2
1 mark for limited analysis of using contribution costing L1

 Not acceptable for stock valuation – if stock is undervalued it could lead to government investigation/fines – affect
business image
 Unrealistic financial statements – could lead to investors withdrawing from the business or government fines.
 Under-pricing of products – which leads to poor return on capital employed and low profits – shareholder dissatisfaction
 Costs can be difficult to allocate – which leads to inaccurate pricing decisions – lose customer loyalty
 Can lead managers to maintain the production of goods just because of positive contribution – perhaps a brand new
product should be launched instead which makes a greater contribution.
 If lower prices are offered to gain customers as contribution can still be earned – may lead to existing customers
demanding lower prices – lower profits.
 If high prices are a key feature that has established brand – then lowering prices could destroy brand image.

Accept all valid responses.

© Cambridge University Press & Assessment 2024 Page 19 of 30


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

5(b) Evaluate whether working capital is the most important source of finance for a start-up furniture manufacturer. 12

There are 12 marks for Q5(b):

2 marks for
2 marks for
2 marks for
6 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


2 marks for developed knowledge L2
1 mark for limited knowledge L1

 Working capital is the capital needed to pay for raw materials, day-to-day running costs and credit offered to
customers.
 Working capital = current assets less current liabilities.
 Source of finance – internal (retained profits, reduce working capital, sale of assets) – external (overdrafts, trade credit,
factoring, HP, leasing, loans, equity finance, share, debentures, venture capital)
 A start up business is a company in the first stages of operations, often being financed by its entrepreneurial founders
during the initial starting period.

AO2 Application
2 marks for developed application L2
1 mark for limited application L1

 Needs finance to pay suppliers of wood, tools.


 Need finance to hire craft persons /machines to make furniture
 Needs finance for rent to hire premises/ warehouses to store furniture pending sale to retailers

© Cambridge University Press & Assessment 2024 Page 20 of 30


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

5(b) AO3 Analysis


2 marks for developed analysis L2
1 mark for limited analysis L1

 If wages cannot be paid due to low working capital could lead to employees leaving the business – thus a high labour
turnover
 If unable to meet a customer order due to poor working capital – business may lose important customers.
 Insufficient working capital to pay suppliers – could lead to loss of trade terms – or supplier refusing to do business with
them altogether.
 If don’t have enough working capital to purchase materials – may not be able to produce enough goods to satisfy
demand – lose sales
 Adequate working capital enables materials to be bought in advance of busy periods – such as the lead up to
Christmas – so don’t miss out on high sales.
 Inadequate working capital may prevent the business from raising additional funds – so will limit or prevent further
growth.
 Might be possible to arrange an overdraft – though may only be limited initially – high interest and potential charges.
 As a new starter will not have traded long enough to have retained profits – so would not have “free” source of finance
 May not have built up trade relationships – so not trustworthy enough yet to get credit
 HP and leasing would allow the business to obtain assets without a large initial cash payment – thus reducing cash
outflow
 Venture capital might be an option – but may have to give up a share of the business – as well as a percentage of
future profits

© Cambridge University Press & Assessment 2024 Page 21 of 30


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2024
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Question Answer Marks

5(b) AO4 Evaluation –


6 marks for evaluation

Developed/Supported judgement in context L3 6 marks

Developed/Reasonable evaluative comments in context L3 5 marks

Developed/Supported judgement without context L2 4 marks

Developed/Reasonable evaluative comments without context L2 3 marks

Limited supported judgement L1 2 marks

An attempt to balance the arguments/Weak attempt at evaluative comments L1 1 mark

© Cambridge University Press & Assessment 2024 Page 22 of 30


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2024
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Question Answer Marks

5(b) A judgement/conclusion is made as to whether working capital is the most important source of finance for a start-up
furniture manufacturer.
These judgements/conclusions may be made at any point in the essay, not only in a concluding section.

 A conclusion about what the new furniture manufacturer hopes to achieve in the long and short term and how much
finance may be required
 A conclusion as to what the business hopes to achieve once established and what elements of its working capital need
improving.
 A judgement that a new business will find it harder to raise finance than a well-established business – so it’s imperative
to effectively manage working capital.
 A conclusion that working capital is only one source of finance and is unlikely to be sufficient for a start-up furniture
manufacturer. However, other options may not be available due to lack of credit history or length of time that the
business has been operating

Accept all valid responses.

© Cambridge University Press & Assessment 2024 Page 23 of 30


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2024
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Question Answer Marks

6(a) Analyse two benefits to a business of low labour turnover. 8

There are 8 marks in total for Q6(a) – 4 marks for each of the two benefits to a business of low labour turnover.

These 4 marks consist of :


1 mark for
1 mark for
2 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for identifying one benefit to a business of low labour turnover

 Lowers cost of recruiting new staff.


 Less employee training required
 Staff loyalty and morale likely to be high
 Less risk of work building up with gaps when staff leave
 Consistency of production
 Production quality maintained
 Customer contact retained
 Reputation of business high

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9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2024
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Question Answer Marks

6(a) AO2 Application


1 mark for application of one benefit to a business of low labour turnover

 Less people leave the business, low replacement costs


 Fewer employees require induction or other training
 Staff content to stay in business
 Sufficient numbers of staff maintained
 Experienced workers remain in the business
 Product quality maintained
 Customers relate to known staff

AO3 Analysis
2 marks for developed analysis of one benefit to a business of low labour turnover L2
1 mark for limited analysis of one benefit to a business of low labour turnover L1

 Lower recruitment and training costs – means more money to reinvest in other areas of the business.
 Consistent customer relationships – means less chance of losing customers – maintain or even increase sales.
 Consistent quality of products and services – less errors – less waste/complaints – decreased costs /improved image
 Low turnover might make business attractive when business does need to recruit – attract better quality workers.
 Better morale and team spirit – can lead to higher productivity
 Less risk of being short staffed – so build reputation with customers for meeting orders
 Knowledge and skills kept within the business – can increase goodwill and value of the business – if it were to be sold.

Accept all valid responses.

© Cambridge University Press & Assessment 2024 Page 25 of 30


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Question Answer Marks

6(b) ‘Work-life balance is the most important human resource management (HRM) factor for employee welfare in a local 12
bus service.’

Evaluate this view.

There are 12 marks for 6(b):

2 marks for
2 marks for
2 marks for
6 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


2 marks for developed knowledge L2
1 mark for limited knowledge L1

 Work-life balance is about creating and maintaining supportive and healthy work environments that enable employees
to have balance between work and other aspects of life – family, friends, community, personal growth.
 Employee welfare is overseen by HRM departments who may offer counselling and other services to staff who are in
need of support, perhaps because of family or financial problems.
 HRM is the strategic approach to the effective management of organisations workers so that they help the business
gain a competitive advantage.

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Question Answer Marks

6(b) AO2 Application


2 marks for developed application L2
1 mark for limited application L1

 Bus drivers and conductors have stressful jobs


 Bus drivers are required to drive safely
 They need to be alert and not over tired
 Bus drivers and conductors are close to passengers
 They need to be work regularly to guarantee a bus timetable

AO3 Analysis
2 marks for developed analysis L2
1 mark for limited analysis L1

 WLB could lead to bus drivers feeling more optimistic about responsibilities – better able to meet timetable targets
 Potentially lower labour turnover and absenteeism reduced if staff feel they have a good WLB
 Bus drivers might have more energy and be less tired with good WLB – leading to better customer experience
 Stressed and overworked bus staff may be rude or not deal very well with angry passengers – which might lead to
customer complaints and demotivated/demoralised drivers
 WLB could reduce negative effects of work-life conflict – such as health risks – smoking, drinking, weight gain,
depression – on employees – business will build good image for business as a caring employer – leading to healthier
drivers
 Strengthen employee loyalty and productivity – which means buses might run on time – increase reputation and
esteem for drivers
 Duty of care to employees – means it will reduce likelihood of paying compensation to employees/customers if
accidents occur to elderly passengers due to speeding drivers.

© Cambridge University Press & Assessment 2024 Page 27 of 30


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

6(b) AO4 Evaluation


6 marks for Evaluation

Developed/Supported judgement in context L3 6 marks

Developed/Reasonable evaluative comments in context L3 5 marks

Developed/Supported judgement without context L2 4 marks

Developed/Reasonable evaluative comments without context L2 3 marks

Limited supported judgement L1 2 marks

An attempt to balance the arguments/Weak attempt at evaluative comments L1 1 mark

A judgement/decision as to whether WLB is the most important HRM factor for employee welfare in a local bus service.
These judgements/decisions may be made at any point in an essay, not just in the concluding section of an essay.

 A judgement is made as to the importance of HR concern for WLB for the welfare of those working for a local bus
service.
 How might WLB be an important HRM factor for employee welfare? – improve performance, improve morale of staff,
prevent over tiredness, signal concern for and confidence in staff
 Might other HRM factors be equally/more important than WLB fir welfare of bus service staff such as training, shorter
work hours, more pay, or better quality management/supervision, better canteen facilities, better holiday entitlements?

Accept all valid responses.

© Cambridge University Press & Assessment 2024 Page 28 of 30


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Mark Grids for Section B

Used for Q5(a) and Q6(a)

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.
 Developed analysis that identifies connections
between causes, impacts and/or consequences of
one point.

1 1–2 marks 1–2 marks 1–2 marks


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

0 0 marks 0 marks 0 marks


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

© Cambridge University Press & Assessment 2024 Page 29 of 30


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Mark Grids for Section B

Used for Q5(b) and Q6(b)

Level AO1 Knowledge AO2 Application AO3 Analysis AO4 Evaluation


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

1 1 mark 1 mark 1 mark 1–2 marks


Limited knowledge Limited application Limited analysis Limited evaluation
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.

0 0 marks 0 marks 0 marks 0 marks


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

© Cambridge University Press & Assessment 2024 Page 30 of 30


Cambridge International AS & A Level

BUSINESS 9609/12
Paper 1 Business Concepts 1 October/November 2024

1 hour 15 minutes

You must answer on the enclosed answer booklet.


* 0 5 6 2 7 2 4 5 1 1 *

You will need: Answer booklet (enclosed)

INSTRUCTIONS
● Answer five questions in total:
Section A: answer all questions.
Section B: answer one question.
● 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 40.
● 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 (WW) 337469/3
© UCLES 2024 [Turn over
2

Section A

Answer all questions.

1 (a) Define the term external stakeholders. [2]

(b) Explain one way the aims of employees may impact on the decisions of a business. [3]

2 (a) Define the term full costing. [2]

(b) Explain one limitation of contribution costing. [3]

3 (a) Define the term dynamic pricing. [2]

(b) Explain one reason why a business might use price discrimination. [3]

4 Analyse one way employee development could be used by a business to encourage


intrapreneurship. [5]

Section B

Answer one question only.

EITHER

5 (a) Analyse two reasons why a business should measure labour productivity. [8]

(b) Evaluate whether the sustainability of operations is the most important operational factor in a
large retail distribution business. [12]

OR

6 (a) Analyse two benefits to a business of customer relationship marketing. [8]

(b) ‘Market research is essential for effective product development in a hotel.’

Evaluate this view. [12]

© UCLES 2024 9609/12/O/N/24


3

BLANK PAGE

© UCLES 2024 9609/12/O/N/24


4

BLANK PAGE

Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every
reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
publisher will be pleased to make amends at the earliest possible opportunity.

To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge
Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download
at www.cambridgeinternational.org after the live examination series.

Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge
Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge.

© UCLES 2024 9609/12/O/N/24


Cambridge International AS & A Level

BUSINESS 9609/12
Paper 1 Short Answer/Essay October/November 2024
MARK SCHEME
Maximum Mark: 40

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 October/November 2024 series for most
Cambridge IGCSE, Cambridge International A and AS Level components, and some Cambridge O Level
components.

This document consists of 32 printed pages.

© Cambridge University Press & Assessment 2024 [Turn over


9609/12 Cambridge International AS & A Level – Mark Scheme October/November 2024
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 descriptions 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.

© Cambridge University Press & Assessment 2024 Page 2 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme October/November 2024
PUBLISHED
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.

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)

© Cambridge University Press & Assessment 2024 Page 3 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme October/November 2024
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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).

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.

© Cambridge University Press & Assessment 2024 Page 4 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme October/November 2024
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9609 Business Studies – Paper 1 Annotations

Annotation Description Use

Tick Indicates a point which is relevant and rewardable.

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

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

Application Indicates where application is made to an appropriate business context.

Analysis Indicates where the answer has demonstrated analysis – questions 4, 5a, 5b, 6a and 6b.

Evaluation Indicates where the answer has demonstrated evaluation – (Section B Part (b) questions only).

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

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

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

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

Repetition Indicates where content has been repeated.

Level 1 Indicates a Level 1 point is made.

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PUBLISHED
Annotation Description Use

Level 2 Indicates a Level 2 point is made.

Level 3 Indicates a Level 3 point is made.

Off Page Comment Used to view PE comments on Practice Scripts only – displayed at the bottom of the screen when
clicking the comments button/toggle.

Guidance on using levels-based mark schemes

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.

© Cambridge University Press & Assessment 2024 Page 6 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme October/November 2024
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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.

© Cambridge University Press & Assessment 2024 Page 7 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme October/November 2024
PUBLISHED
Mark Grids for Section A

Used for Q1(a), Q2(a) and Q3(a)

Two marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these marks.

AO1 Knowledge and understanding Marks

Knowledge of the term that demonstrates a clear understanding of the term. 2 Indicated by 2 where appropriate in the answer

Knowledge of the term that demonstrates a partial understanding of the term. 1 Indicated by 1 where appropriate in the answer

No creditable response. 0

Used for Q1(b), Q2(b) and Q3(b)

Three marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these marks.

AO1 Knowledge and understanding AO2 Application


1 mark 2 marks

2 marks
Developed application of one relevant point to a business context.
Indicated by a further where appropriate in the answer

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.
Indicated by 1 where appropriate in the answer Indicated by 1 where appropriate in the answer

0 marks 0 marks
No creditable response. No creditable response.

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9609/12 Cambridge International AS & A Level – Mark Scheme October/November 2024
PUBLISHED
Question Answer Marks

1(a) Define the term external stakeholders 2

Indicative content

Responses may include:

AO1 Knowledge and understanding

Clear understanding of the term external stakeholders is worth 2 marks.

• Those outside of (who do not work for) an organisation/business … but have an interest in or are affected by that
business. Accept examples such as suppliers, customers, the community if they are given to explain externality (2)

Partial understanding of the term external stakeholders is worth 1 mark.

• Stakeholders who are outside of the business (1)

Accept all valid responses.

© Cambridge University Press & Assessment 2024 Page 9 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme October/November 2024
PUBLISHED
Question Answer Marks

1(b) Explain one way the aims of employees may impact on the decisions of a business. 3

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for identifying one way the aims of employees may impact a business.

• Employees are a significant group of internal stakeholders with an interest in how a business should operate and may
have aims that impact on a business … accept general impact on a business as well as or instead of impact on
business decisions.
• Pressure human resources to produce supportive working conditions (via trade unions – threat to withdraw labour)
• Seek wage/salary increases, profit share opportunities
• Seek strong health/safety conditions
• Seek regular training and development
• Seek participation in decisions
• May also be determined to be productive/hardworking leading to a positive impact on a business
• May seek self-actualisation at work

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Question Answer Marks

1(b) AO2 Application


2 marks for developed application/explanation of the way given
1 mark for limited application/explanation of the way given

The ways the aims of employees may impact on business should include examples of how a business might respond to
the aims of employees.
• Business may have to accept increases costs to meet employee aims/demands
• May need to postpone/abandon growth policies
• May need to increase prices to cover increased costs
• May need to increase resource allocation to employee stakeholder group
• May need to reduce focus on dividends and profit retention
• May respond positively if employee aims are aligned with business aims.

Accept all valid responses.

© Cambridge University Press & Assessment 2024 Page 11 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme October/November 2024
PUBLISHED
Question Answer Marks

2(a) Define the term full costing 2

Indicative content

Responses may include:

AO1 Knowledge and understanding

Clear understanding of the term full costing is worth 2 marks.

• The method of costing in which all fixed and variable costs … are allocated/applied to products, product prices or cost
centres of a business (2) – reference must be made to both aspects of this definition for the award of 2 marks -
reference to only one aspect of this definition is a partial definition and should be awarded only 1 mark.

Partial understanding of the term full costing is worth 1 mark.

• The inclusion of fixed and variable costs (1)

Accept all valid responses.

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Question Answer Marks

2(b) Explain one limitation of contribution costing. 3

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for identifying one limitation of contribution costing

• Contribution costing allocates only direct costs to cost/profit centres


• Segregation of fixed and variable costs often difficult and imprecise
• Long term profitability is correctly calculated only using a full-cost basis
• Not an appropriate method for price determination
• It oversimplifies cost behaviour
• Gives misleading impression of business performance
• Difficult to allocate across a multi-product business
• May not reflect economic reality
• May prevent new product development
• Calculation of contribution cost can be difficult
• Only an internal tool

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Question Answer Marks

2(b) AO2 Application


2 marks for developed application/explanation of one limitation of contribution costing
1 mark for limited application/explanation of one limitation of contribution costing

• Ignores overhead costs and so delays/distorts the calculation of profit or loss


• Takes no account that some products/divisions may have much higher fixed costs than others
• May distort economic reality – especially when inventory changes
• May lead to a business continuing to produce a product long after it should have stopped production (makes a
contribution) but delays a new product that could make a better contribution
• Inappropriate pricing may lead to reduced sales/profitability
• Gives misleading picture of business performance – overstates profit
• The segregation of costs can be difficult – cannot be done with precision – marginal costs cannot be represented as a
straight line
• Internal use only – does not align with financial reporting regulations.

Accept all valid responses.

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Question Answer Marks

3(a) Define the term dynamic pricing 2

Indicative content

Responses may include:

AO1 Knowledge and understanding

Clear understanding of the term dynamic pricing is worth 2 marks.

• The practice of varying the price of a product … in response to demand and supply (market changes) and/or ability to
pay (2) – reference must be made to both aspects of this definition for the award of 2 marks – reference to only
1 aspect of this definition is a partial definition and should be awarded only 1 mark.

Partial understanding of the term dynamic pricing is worth 1 mark.

• Regular product price changes (1)


• Based on demand (1)
• Based on ability to pay (1)

Accept all valid responses.

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Question Answer Marks

3(b) Explain one reason why a business might use price discrimination. 3

Indicative content

AO1 Knowledge and understanding


1 mark for identifying one reason why a business might use price discrimination.

Note: Do not award a mark for a definition of what price discrimination is – award a mark only for a reason why a business
might use price discrimination.

• Allows a business to take advantage of market position


• Allows a business to exploit segmented markets
• Allows a business to stimulate customer demand
• Allows a business to maximise sales, revenue, profit

AO2 Application
2 marks for developed application/explanation of one reason
1 mark for limited application/explanation of one reason

• If conditions allow it can enable a business to maximise profits/sales when market segments are kept apart
• It allows a business to set the highest price that the customer is willing to pay in each market segment based on their
ability to pay.
• By selling at a high price in some markets a business can maintain its share of sales in more competitive markets a
lower price might be used.
• A business using price discrimination can entice customers to purchase larger quantities of products/services
• Price discrimination can be used to motivate otherwise uninterested customers to purchase products/services

Accept all valid responses.

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Question Answer Marks

4 Analyse one way employee development could be used by a business to encourage intrapreneurship. 5

Note: No marks should be given if a relevant ‘way’ is not given somewhere in the answer.
Do not award marks for a correct definition of either ‘employee development’ or ‘intrapreneurship’ unless the terms are
used to explain and analyse ways in which intrapreneurship is encouraged.

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for identifying one way employee development could be used by a business to encourage intrapreneurship

• Train employees to provide more/enhanced skills


• Delegate to provide manager and leadership opportunities
• Use motivational theorists e.g. Maslow
• Support employee self-actualisation needs
• Support teamwork/job enrichment opportunities to increase confidence
• Provide the time and resources to innovate and think ‘outside the box’
• Develop flexible work patterns
• Provide incentives for creative ideas/proposals
• Free up time for experiments and projects

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Question Answer Marks

4 AO2 Application
2 marks for developed application/explanation of the chosen way
1 mark for limited application/explanation of the chosen way

• Business recognises that, with enhanced and new skills, employees can make a greater contribution to business
performance
• Business recognises that improved intrapreneurial skills can lead to competitive advantage and USP – and likely to be
few businesses that allocate resources in such a way

AO3 Analysis
2 marks for developed analysis of the chosen one way
1 mark for limited analysis of the chosen one way

• Invest in training will develop a culture of experimentation – new skills – new confidence
• Delegation will give confidence to innovate and develop new ideas
• Support employees who will be risk-takers and who ‘tread their own path’
• Allow employees to devote a % of their work time to individual projects
• Encourage prospective intrapreneurs to examine and analyse organisational bottlenecks – operate as internal
consultants
• Encourage autonomy and independence – recognise and reward employees that show an entrepreneurial spirit
• Use employees to disrupt the business – support those that break the rules
• Empower employees with tools and resources they need – give permission to innovate and break away from standard
processes – encourage innovation and creativity
• Develop and support intrapreneurial skill sets and lenses within the workforce – buy in through external recruitment if
necessary and appropriate.

Accept all valid responses.

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Question Answer Marks

5(a) Analyse two reasons why a business should measure labour productivity. 8

There are 8 marks in total for Q5(a) – 4 marks for each of the two reasons given:
1 mark for
1 mark for
2 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for giving one reason

• Labour productivity is real economic output per labour hour


• It is an important indicator of current/future business performance
• It is an important indicator of efficiency/inefficiency … what is going well/what might need changing
• It allows a business to make comparisons
• It allows a business to regularly analyse the factors that affect productivity levels/motivation levels
• It suggests regular appraisals of resource allocation e.g. capital/labour investment

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Question Answer Marks

5(a) AO2 Application


1 mark for application of one reason

• Labour productivity is an important determinant of business performance


• Measurement of labour productivity gives a business information relating to any need to change/improve the
productivity of its workforce
• Measurement allows comparisons to be made between current and past labour productivity and with competitor levels
of labour productivity

AO3 Analysis –
2 marks for developed analysis of one reason L2
1 mark for limited analysis of one reason L1

• Business needs to understand the strength or weakness of its current level of labour productivity – how past decisions
have impacted on labour productivity
• Business needs to understand why and how changes in labour productivity are needed – what level of improvement is
needed
• If labour productivity is seen to be declining change, options can be considered – invest in more capital equipment –
automation, computerisation, robotics – more investment in employee training and skills – review production process
etc.
• Labour costs are often a significant proportion of production costs and the productive use of labour is closely linked to
business efficiency and profitability – non-measurement of labour productivity implies there is little management control
or accountability of business performance – ‘what gets measured gets done’.

Accept all valid responses.

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Question Answer Marks

5(b) Evaluate whether the sustainability of operations is the most important operating factor in a large retail 12
distribution business.

There are 12 marks for Q5(b):


2 marks for
2 marks for
2 marks for
6 marks for

Indicative content

Note: While the term business sustainability is understood by many to be concerned primarily with environmental and
social issues such as waste and carbon emissions, some candidates may present an alternative understanding of the term
business sustainability.
This alternative understanding has a focus on the need for a business to survive long term as a viable operating business
having concern for issues such as sustainable employment, and the sustainability of providing appropriate goods and
services. If this alternative understanding and interpretation of sustainability clearly relates to the question it should be seen
as an acceptable response and marks awarded according to the strengths of the AO1, AO2, AO3, and AO4 skills
presented.

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Question Answer Marks

5(b) Responses may include:

AO1 Knowledge and understanding


2 marks for developed knowledge L2
1 mark for limited knowledge L1

• Sustainable operations are those that deliver financial value with the imperative to take account of societal and
environmental impact for the benefit of all stakeholders
• Sustainable operations seek to use practices and meet existing needs without placing future resources at risk and
compromising the ability to meet future needs
• Operating factor – any part of the operational process that affects the operational performance of a business.
• Distribution warehouse – the storage of products, the sorting and filling of customer orders and the delivery of products
to customers.

AO2 Application
2 marks for developed application L2
1 mark for limited application L1

• Sustainable operations such as sustainable packaging for items sold and made ready for delivery
• Low carbon delivery methods – electric vans
• Sustainable delivery flow methods/models
• Sustainable inventory holding methods
• Low energy consumption strategies in distribution warehouses
• Types/e.g. of large scale retailers which use retail distribution centres

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Question Answer Marks

5(b) AO3 Analysis


2 marks for developed analysis L2
1 mark for limited analysis L1

• Improving the sustainability of operations of a business can involve – an audit of energy usage, of water usage, of
waste/materials management
• Improving the sustainability of operations of a distribution warehouse can involve an audit of distribution fleet energy
usage/inventory flow and order management
• Operational sustainability can involve – upgrade of heating and cooling systems, more energy efficient lighting, fuel
efficient transport/vehicles
• Improving operational efficiency involves – cost effective streamlining of base operations with a focus on resource
utilisation
• Improving operational efficiency can be sought and achieved through – minimising waste in operations,
• Operational efficiency can be improved with – producing and managing enough inventory to meet demand with as little
excess inventory as possible

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Question Answer Marks

5(b) AO4 Evaluation


6 marks for evaluation

Developed/Supported judgement in context 6 marks


L3

Developed/Reasonable evaluative comments in context 5 marks


L3

Developed/Supported judgement without context 4 marks


L2

Developed/Reasonable evaluative comments without context 3 marks


L2

Limited supported judgement 2 marks


L1

An attempt to balance the arguments/Weak attempt at evaluative comments 1 mark


L1

A judgement/decision of the importance of improving the sustainability of operations is made.


Such judgements/decisions may be made at any point in the essay, not just in a concluding section
• A judgement might be made that operational sustainability and operational efficiency are very much the same – the
search for cost reduction and the measures to secure those cost reductions can be similar, e.g. waste reduction,
energy reduction, efficient resource usage
• A judgement might be made that operational efficiency improvement is a much more limited activity than sustainability
improvement
• A judgement may be made that the aims of a commercial business should be cost reduction and profit enhancement,
not objectives concerned with environmental and societal benefits
• A judgement might be made that improving the sustainability of operations requires more substantial changes in
business behaviour – a focus on the long-term rather than the short-term – the deliberate pursuit of ecological balance
through the non-depletion of natural resources

Accept all valid responses.

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Question Answer Marks

6(a) Analyse two benefits to a business of customer relationship marketing. 8

There are 8 marks in total for Q6(a) – 4 marks for each benefit given:

1 mark for
1 mark for
2 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for giving one benefit

• Establishes successful customer relationships that produce and maintain customer loyalty
• CRM attracts and retain customers
• Improves brand image
• An effective method of promotion/advertising
• An effective way of increasing customer base
• Provides important and detailed information on customers
• Provides a potentially profitable interface with most important customers
• Reduces customer dissatisfaction and complaints

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Question Answer Marks

6(a) AO2 Application


1 mark for application of one benefit

• CRM puts the customer at the centre of all marketing decisions to keep existing customers and gain new ones
• CRM gains as much information as possible about the income, buying habits, and product preference of customers
• CRM seeks to build a successful interface with customers and so deal with customers efficiently and effectively

AO3 Analysis
2 marks for developed analysis of one benefit L2
1 mark for limited analysis of one benefit L1

• Improve customer relationships – gathers data to facilitate targeted marketing and support
• Deepens the business relationship with customers – allows business to stay connected to customers and potentially
increase profits
• Facilitates more effective marketing campaigns – makes forecasting simpler and more accurate – the whole customer
journey from enquiry to sale is documented
• Supports a strategy to learn more about customer needs and behaviours – and so deal with customers more efficiently
– determine which customers are more profitable and those that are not profitable
• Improves customer relationships where sales may be slipping or where there is poor customer service – invest in live
chat, video chat etc
• Assists sales team to analyse and prioritise existing sales – identify and seize sales opportunities – cross-selling
• Reduces costs of marketing – better targeted customer information (in the cloud, for example) reduces the costs of
manual and paper administrative work

Accept all valid responses.

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Question Answer Marks

6(b) ‘Market research is essential for effective product development in a hotel’. Evaluate this view. 12

There are 12 marks for Q6(b):


2 marks for
2 marks for
2 marks for
6 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


2 marks for developed knowledge L2
1 mark for limited knowledge L1

• Market research is action designed to gather information about consumer needs and preferences that helps to
determine the viability of a product or service
• Market research information can help a business to understand what customers want and their perceptions of existing
products and services – strengths and weaknesses
• Product development supports business survival and growth where there are changing customer demands and
behaviours, and strong competition
• Products are designed to be more attractive to existing customers and to attract new customers
• Market research produces relevant information for product development

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Question Answer Marks

6(b) • Indicates gaps that can be filled through product development


• Informs the business of competitor threats
• Informs the business of performing and non-performing products and services
• Informs the business of customer expectations/requirements and what changes may take place

AO2 Application
2 marks for developed application L2
1 mark for limited application L1

Market research and new products may be required due to the following reasons:

• Hotel rooms may be tired, dated, too small


• Hotel may lack pools, gyms, entertainment
• Hotel food may be poor/indifferent
• Customer services may be poor – little personal service – few remedies for faults – TV/showers not working
• Hotel amenities may be out of date – refurbishment needed to meet modern needs

AO3 Analysis
2 marks for developed analysis L2
1 mark for limited analysis L1

Market research may be needed to address the following:


• Develop a better understanding of customer concerns/dissatisfaction – encourage on-line reviews and feedback
• Improve customer satisfaction by rewarding loyal guests and personalise the customer experience
• Modernise and improve hotel services such a free internet, offer more sustainable services – recyclable materials,
water conservation, simplify the booking and make checkout simple and speedy
• Special offers for long stay, out of season stays – price reductions, enhanced food options, upgrade room
• Recruit new leadership and management – to create new ideas and products, improved customer satisfaction
• Improve quality of hotel services – new local suppliers of quality food – higher quality bed linen
• Introduce new themed ‘fun’ nights – attract a new clientele
• Invest more resources into marketing – exploit the brand – outflank competitor activities – market new offers

Market research and product development will likely underpin and support most of the activities outlined above
© Cambridge University Press & Assessment 2024 Page 28 of 32
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Question Answer Marks

6(b) AO4 Evaluation


6 marks for evaluation

Developed/Supported judgement in context 6 marks


L3

Developed/Reasonable evaluative comments in context 5 marks


L3

Developed/Supported judgement without context 4 marks


L2

Developed/Reasonable evaluative comments without context 3 marks


L2

Limited supported judgement 2 marks


L1

An attempt to balance the arguments/Weak attempt at evaluative comments 1 mark


L1

A judgement/decision regarding the importance of market research and new product development is made.
Such judgements/decisions can be made at any point in the essay and not just in a concluding section
• A judgement/decision might be made that, if customer satisfaction (or lack of it) is the cause of poor hotel performance,
then market research is vital and important in order to determine what changes need to be made
• It may be decided that market research must come before development of products or services. Research and
Development is the correct order
• The judgement is made that market research is the critical tool to enable a business to know what existing and new
customers need and want – and without effective market research competitive advantage cannot be achieved
• It may be decided that effective hotel managers and leaders need to concentrate on new ideas and products quickly
rather than wait for market research results
• A judgement might be made that attempts to improve hotels requires both effective market research and product
development
• A judgement could be made that there are other factors that need to be considered, other than market research e.g.
the quality of financial management and control, the quality of HRM, or the operational efficiency of food production
and cleaning operations

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Question Answer Marks

6(b) Accept all valid responses.

© Cambridge University Press & Assessment 2024 Page 30 of 32


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PUBLISHED
Mark Grids for Section B

Used for Q5(a) and Q6(a)

Level AO1 Knowledge and understanding AO2 Application AO3 Analysis


2 marks 2 marks 4 marks

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

1 1–2 marks 1–2 marks 1–2 marks


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

0 0 marks 0 marks 0 marks


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

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Mark Grids for Section B

Used for Q5(b) and Q6(b)

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

0 0 marks 0 marks 0 marks 0 marks


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

© Cambridge University Press & Assessment 2024 Page 32 of 32


Cambridge International AS & A Level

BUSINESS 9609/11
Paper 1 Business Concepts 1 October/November 2024

1 hour 15 minutes

You must answer on the enclosed answer booklet.


* 1 2 0 9 2 2 8 3 6 5 *

You will need: Answer booklet (enclosed)

INSTRUCTIONS
● Answer five questions in total:
Section A: answer all questions.
Section B: answer one question.
● 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 40.
● 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 (SL) 337463/1
© UCLES 2024 [Turn over
2

Section A

Answer all questions.

1 (a) Define the term zero budgeting. [2]

(b) Explain one cause of a favourable variance. [3]

2 (a) Define the term sampling. [2]

(b) Explain one method of interpreting quantitative market research data. [3]

3 (a) Define the term résumé. [2]

(b) Explain one reason why a business may produce a workforce plan. [3]

4 Analyse one benefit to a business of improving capacity utilisation. [5]

Section B

Answer one question only.

EITHER

5 (a) Analyse two limitations to a business of using a business plan. [8]

(b) ‘A chocolate manufacturer should use external methods of growth to successfully achieve its
objectives.’

Evaluate this view. [12]

OR

6 (a) Analyse two reasons why an employee’s human needs may not be satisfied at work. [8]

(b) ‘Non‑financial motivators are the most effective methods of motivating a hotel’s employees.’

Evaluate this view. [12]

© UCLES 2024 9609/11/O/N/24


3

BLANK PAGE

© UCLES 2024 9609/11/O/N/24


4

BLANK PAGE

Permission to reproduce items where third‑party owned material protected by copyright is included has been sought and cleared where possible. Every
reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
publisher will be pleased to make amends at the earliest possible opportunity.

To avoid the issue of disclosure of answer‑related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge
Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download
at www.cambridgeinternational.org after the live examination series.

Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge
Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge.

© UCLES 2024 9609/11/O/N/24


Cambridge International AS & A Level

BUSINESS 9609/11
Paper 1 Short Answer/Essay October/November 2024
MARK SCHEME
Maximum Mark: 40

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 October/November 2024 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.

© Cambridge University Press & Assessment 2024 [Turn over


9609/11 Cambridge International AS & A Level – Mark Scheme October/November 2024
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 descriptions 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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9609/11 Cambridge International AS & A Level – Mark Scheme October/November 2024
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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.

© Cambridge University Press & Assessment 2024 Page 3 of 29


9609/11 Cambridge International AS & A Level – Mark Scheme October/November 2024
PUBLISHED
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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9609/11 Cambridge International AS & A Level – Mark Scheme October/November 2024
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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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9609 Business Studies - Paper 1 Annotations

Annotation Description Use

Tick Indicates a point which is relevant and rewardable.

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

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

Application Indicates where application is made to an appropriate business context.

Analysis Indicates where the answer has demonstrated analysis – questions 4, 5a, 5b, 6a and 6b.

Evaluation Indicates where the answer has demonstrated evaluation - (Section B Part (b) questions only).

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

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

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

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

Repetition Indicates where content has been repeated.

Level 1 Indicates a Level 1 point is made.

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Annotation Description Use

Level 2 Indicates a Level 2 point is made.

Level 3 Indicates a Level 3 point is made.

Off Page Used to view PE comments on Practice Scripts only – displayed at the bottom of the screen when clicking the
Comment comments button/toggle.

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Guidance on using levels-based mark schemes

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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Mark Grids for Section A

Used for Q1(a), Q2(a) and Q3(a)

Two marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these marks.

AO1 Knowledge and understanding Marks

Knowledge of the term that demonstrates a clear understanding of the term. 2 Indicated by 2 where appropriate in the answer

Knowledge of the term that demonstrates a partial understanding of the term. 1 Indicated by 1 where appropriate in the answer

No creditable response. 0

Used for Q1(b), Q2(b) and Q3(b)

Three marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these marks.

AO1 Knowledge and understanding AO2 Application


1 mark 2 marks

2 marks
Developed application of one relevant point to a business context.
Indicated by a further where appropriate in the answer

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.
Indicated by 1 where appropriate in the answer Indicated by 1 where appropriate in the answer

0 marks 0 marks
No creditable response. No creditable response.

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Question Answer Marks

1(a) Define the term zero budgeting. 2

Indicative content

Responses may include:

AO1 Knowledge and understanding

Clear understanding of the term zero budgeting is worth 2 marks.

• budgets are automatically set to zero and budget holders must argue their case to receive any finance/funds (2)

Partial understanding of the term zero budgeting is worth 1 mark.

• budgets are set to zero (1)


• budgets set without consideration of historical data (1)
• potential costs evaluated from 0 each year (1)

Accept all valid responses.

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Question Answer Marks

1(b) Explain one cause of a favourable variance. 3

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for identifying one cause of a favourable variance

• income higher than expected


• increase in demand/sales
• loss of competition
• effective promotion
• costs less than expected/decreased spending
• profit higher than expected

AO2 Application
2 marks for developed application/explanation of the cause given
1 mark for limited application/explanation of the cause given

• actual sales revenue higher than budgeted sales revenue - economic boom leads to more sales than expected
• advertisements increase sales and sales revenue is higher than budgeted
• actual wages less than budgeted wages - wage rises lower than expected/less staff employed/less hours worked
• lower material costs – motivated workers making less mistakes/less wastage
• produced less, therefore spent less money on raw materials and labour

Accept all valid responses.

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Question Answer Marks

2(a) Define the term sampling. 2

Indicative content

Note: do not accept test marketing as a correct answer to this question.

Responses may include:

AO1 Knowledge and understanding

Clear understanding of the term sampling is worth 2 marks.

• selecting a group of people/customers to represent the population/customer base/target market as a whole (2)

Partial understanding of the term sampling is worth 1 mark.

• choosing a group of people (1)


• form of market research (1)

Accept all valid responses.

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Question Answer Marks

2(b) Explain one method of interpreting quantitative market research data. 3

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for identifying one method of interpreting quantitative market research data.

• tables
• charts – bar, pie
• graphs – line
• trend analysis/moving averages
• arithmetic mean, mode and median
• index numbers

AO2 Application
2 marks for developed application/explanation of one method.
1 mark for limited application/explanation of one method.

• direct comparison of numerical information in table with columns and rows – could use a spreadsheet
• use charts and/or graphs to represent the information presented in a table – easy to read/analyse
• compare size of segments in pie charts or heights of bars comparing actual figures collected
• plot data on a graph and analyse change in trend over time/moving averages
• percentage or actual changes shown over time, possibly with a forecast based on the data
• calculate average/most frequent/middle of a set of results - allows focus on a more realistic figure than considering
extremes
• set a base year as the start of analysis and compare changes over time using index numbers

Accept all valid responses.

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Question Answer Marks

3(a) Define the term résumé. 2

Indicative content

Responses may include:

AO1 Knowledge and understanding

Clear understanding of the term résumé is worth 2 marks.

• document/form/statement/template …... which summarises applicant’s relevant job experience/achievements,


education/qualifications and training (2)

Partial understanding of the term résumé is worth 1 mark.

• Similar/separate to a CV (1)

Accept all valid responses.

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Question Answer Marks

3(b) Explain one reason why a business may produce a workforce plan. 3

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for identifying one reason why a business may produce a workforce plan.

• planning for future labour requirements


• help with budgeting
• preparing for changes in external environment
• predicts changes in current labour and skills needed

AO2 Application
2 marks for developed application/explanation of one reason
1 mark for limited application/explanation of one reason

• business can plan for redundancies, retirements, maternity/paternity leave, expansion of business, labour turnover
• allows changes to workforce to be budgeted for – recruitment, training, wages
• ensuring that they have the right employees in terms of numbers, work locations and skills
• helps businesses to deal with changes (such as the impact of new technology or in consumers’ tastes)
• help businesses to prepare for changes in the workforce, such as the introduction of new production-line machinery
• enabling businesses to meet their organisational objectives

Accept all valid responses.

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Question Answer Marks

4 Analyse one benefit to a business of improving capacity utilisation. 5

Note: no marks can be awarded if a relevant benefit is not given

Indicative content

NOTE: some candidates have interpreted improving capacity utilisation as preventing capacity shortages or reducing long-
term excess capacity. This leads to answers that focus on saving costs. This is a valid response and should be marked and
rewarded appropriately.

Responses may include:

AO1 Knowledge and understanding


1 mark for identifying one benefit to a business of improving capacity utilisation

• better use of factors of production/more efficient


• more products made in same time/match production to demand
• achieve output maximisation
• take advantage of economies of scale
• reduce inventory storage cost

AO2 Application
2 marks for developed application/explanation of the chosen benefit
1 mark for limited application/explanation of the chosen benefit

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Question Answer Marks

4 • no idle assets e.g. employees, premises, machinery, office space


• spread fixed costs of business over more units e.g. running machinery, rent of premises/unit fixed costs will reduce
• cope with increases in demand, no risk of stock out
• buy more raw materials/components to gain discounts
• opportunity cost of inventory stored but unable to be used
• no wastage

AO3 Analysis
2 marks for developed analysis of the chosen one benefit
1 mark for limited analysis of the chosen one benefit

• business can be more competitive/increase market share


• cost of producing each item will fall so can lower selling price or increase profit margins
• increased flexibility to meet customer demand results in customer satisfaction
• business can become more profitable as costs fall but sales increase
• reduced inventory costs increases profits and allows money to be used elsewhere

Accept all valid responses.

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Question Answer Marks

5(a) Analyse two limitations to a business of using a business plan. 8

There are 8 marks in total for Q5(a) – 4 marks for each of the two reasons given:
1 mark for
1 mark for
2 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for giving one limitation to a business of using a business plan

• plan is often set up before the business starts to run


• plan may not be accurate/may be biased
• plan may be unrealistic
• business plan for a large business can be a very complex document
• plans quickly become out of date/are short term
• may cause inflexibility/over-reliance
• reduce innovation
• reveals future strategies to competitors
• does not guarantee success

AO2 Application
1 mark for application of one limitation
• must be based on market research but no past experience of running this business
• an entrepreneur may not have business knowledge, just an idea based on a hobby
• unrealistic expectations puts pressure on employees

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Question Answer Marks

5(a) • a lot of time and effort is taken to produce a detailed business plan
• external and internal circumstances may not be predictable and can change rapidly
• owner may prefer to follow the plan rather than reacting to external influences and ideas
• plan may be critiqued by other businesses

AO3 Analysis
2 marks for developed analysis of one limitation L2
1 mark for limited analysis of one limitation L1

• for a start-up business the plan might be weak due to inexperience or over-optimism of entrepreneur so will not help
the business to make decisions
• to be useful the plan must have accurate forecasts, the right actions must be planned and effectively implemented in
the given circumstances, otherwise it is a waste of time for the business to produce
• without being based on reliable research and experience in this type of business the plan may be inaccurate and will
not help the business to survive or develop
• if goals are not achieved employees are discouraged and motivation is reduced
• an employee, probably a manager, will have to be allocated the role of producing the plan, which takes them away
from other aspects of their job role, so the business may be less efficient
• the business plan needs to be constantly updated if it is to be an effective working document which takes further
time/effort
• lack of quick responses causes missed opportunities and lack of competitiveness
• simply having a plan does not guarantee success/must be good and carried out well
• confidential company information is revealed to external sources, losing competitive advantage

Accept all valid responses.

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Question Answer Marks

5(b) ‘A chocolate manufacturer should use external methods of growth to successfully achieve its objectives.’ 12

Evaluate this view.

There are 12 marks for Q5(b):


2 marks for
2 marks for
2 marks for
6 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


2 marks for developed knowledge L2
1 mark for limited knowledge L1

• external (inorganic) buying or joining with another business, integration, merger, takeover, horizontal, forward vertical,
backward vertical, conglomerate diversification, joint venture, strategic alliance
• internal (organic) sales growth with existing products and customers or new products, new customers, new markets
• different types of objectives – growth in size, market share, profit, cash flow, survival, diversification, providing a
service, ethical, social

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Question Answer Marks

5(b) AO2 Application


2 marks for developed application L2
1 mark for limited application L1

• chocolate manufacturer – may give named examples, brands or foods, could refer to specific parts of the process. The
manufacturer could undertake backward vertical integration with a supplier of cacao beans.

Packaging is not application unless explained in relation to chocolate – it can apply to any manufacturer

AO3 Analysis
2 marks for developed application L2
1 mark for limited application L1

• horizontal integration is good for increasing market share by combining sales of both businesses, whilst getting rid of a
competitor
• mergers can bring together complementary ideas and techniques to aid product development e.g. new chocolate
recipe
• external growth is good for entering new markets where the other business is already established and successful
• external growth is a quick method of expansion as all factories, equipment and employees are already in place
• takeover may be too expensive for a business aiming for quick profit maximisation or a small business
• internal growth is less expensive and may appeal more to a smaller business
• depending on what the objectives are it is possible to achieve them without growth e.g. motivating/training workers for
profit maximisation
• a new business may focus on survival and then slower internal growth building on their success

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Question Answer Marks

5(b) AO4 Evaluation


6 marks for evaluation
Developed/Supported judgement in context 6 marks
L3

Developed/Reasonable evaluative comments in context 5 marks


L3

Developed/Supported judgement without context 4 marks


L2

Developed/Reasonable evaluative comments without context 3 marks


L2

Limited supported judgement 2 marks


L1

An attempt to balance the arguments/Weak attempt at evaluative comments 1 mark


L1

A judgement/decision on whether a chocolate manufacturer should use external methods of growth to successfully achieve
its objectives is made.

Such judgements/decisions may be made at any point in the essay, not just in a concluding section
• depends on the objectives of the business
• depends on current size of the business
• depends on strength of brand, competition, state of economy, changing customer tastes e.g. for lower sugar chocolate
• depends on the type of chocolate products being manufactured - niche or specific to particular countries e.g. chilli
chocolate. Will it transfer to a wider market?
• is there the potential for the manufacturer to grow?
• depends on how much finance is available to grow
• depends on the type of ownership of the business
• merger, friendly and hostile takeovers can all be carried out

Accept all valid responses.

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Question Answer Marks

6(a) Analyse two reasons why an employee’s human needs may not be satisfied at work. 8

There are 8 marks in total for Q5(a) – 4 marks for each of the two reasons given:
1 mark for
1 mark for
2 marks for

Indicative content

Note: A candidate may interpret the question as why the business is unable to satisfy its employees’ human needs e.g. it
cannot afford to pay higher wages or provide a rest room. This is an acceptable interpretation and the full range of marks is
available for such an answer.

Responses may include:

Note: Some candidates make the application points as knowledge points and vice versa. This is acceptable and should be
rewarded.

AO1 Knowledge and understanding


1 mark for giving one reason

• underpaid
• lack of job security
• unsafe working conditions
• lack of teamwork
• no promotion prospects
• lack of work life balance
• type of job
• style of leadership
• objectives of the business

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Question Answer Marks

6(a) AO2 Application


1 mark for application of one reason
• basic/hygiene needs not met – money, survival, low wages/salary
• security and safety needs – contract, business struggling
• belonging or social needs - isolated
• higher level needs/motivators not being met – recognition, self-esteem, self-actualisation, achievement
• hours are long and restrictive
• work is boring, monotonous, lack of opportunity
• autocratic, strict, regimented working style
• if objectives are not profit maximisation employees might suffer

AO3 Analysis –
2 marks for developed analysis of one reason L2
1 mark for limited analysis of one reason L1
• not enough money to pay for basic standard of living for self and family. May be unskilled and low paid job – no
opportunity to improve this without employer willing to increase wage and may need to pay for training to do this
• no job security – no contract, zero hours, no trade union representation, unethical employer, high demand for jobs,
recession causing business uncertainty – employee unable to make plans for the future
• no opportunity to work with others – labour intensive flow production. Exclusion by other employees. Discrimination.
Employee may be demotivated and not want to go to work
• no acknowledgement or opportunity for promotion – employee feels they don’t matter and may have to change jobs
• no consideration by employer or management that employees have needs – may feel exploited and demotivated
• employees have different needs depending on past experience and current position – need to feel that this is
recognised
• focus on business survival rather than profit maximisation means employee wages might be lower

Accept all valid responses.

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Question Answer Marks

6(b) ‘Non-financial motivators are the most effective methods of motivating a hotel’s employees.’ 12

Evaluate this view.

There are 12 marks for Q6(b):


2 marks for
2 marks for
2 marks for
6 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


2 marks for developed knowledge L2
1 mark for limited knowledge L1

• non-financial motivators – job satisfaction, training, leadership, job rotation, job enlargement, teamworking
• financial motivation – salary, commissions, bonuses, overtime

AO2 Application
2 marks for developed application L2
1 mark for limited application L1

• hotel – vacation, holiday makers, business conferences, rooms, services provided


• types of employees/job roles in a hotel – cleaners, reception, hotel manager, chef, waiters

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Question Answer Marks

6(b) AO3 Analysis


2 marks for developed application L2
1 mark for limited application L1

• teamworking may lead to greater efficiency in taking care of guests and lead to getting good reviews, but some
employees might work better individually and dislike working with others
• job rotation could make working more interesting e.g. cleaners rotate into different areas of the hotel rather than only
cleaning bedrooms, but could take time to train in different areas
• training to improve performance boosts self-esteem and also encourages employee to take pride in work but has cost
implications
• job enrichment and being given more responsibilities e.g. junior chefs being encouraged to develop a dish for the
restaurant
• provision of good working conditions will motivate many employees to stay with the hotel due to having good
equipment and safe surroundings where there is no risk of accident
• low paid, temporary, often young employees in hotels e.g. waiting staff and cleaners are possibly motivated by money
therefore opportunities to earn more with overtime or piece rate may motivate them to work harder/longer

AO4 Evaluation
6 marks for evaluation

Developed/Supported judgement in context 6 marks


L3
Developed/Reasonable evaluative comments in context 5 marks
L3
Developed/Supported judgement without context 4 marks
L2
Developed/Reasonable evaluative comments without context 3 marks
L2
Limited supported judgement 2 marks
L1
An attempt to balance the arguments/Weak attempt at evaluative comments 1 mark
L1

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Question Answer Marks

6(b) A judgement/decision regarding the most effective methods of motivating a hotel’s employees is made.
Such judgements/decisions can be made at any point in the essay and not just in a concluding section
• method may depend on type of employee and current job role
• may depend on the amount of finance available to the hotel
• may depend on the size/type of the hotel – small/niche/local/large chain
• may depend on loyalty of employees to the hotel
• may depend on number and type of competitors
• may depend on whether the hotel requires motivated workers
• budget vs luxury hotel e.g. Travelodge vs Hilton
• expectations of clientele

Accept all valid responses.

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Mark Grids for Section B

Used for Q5(a) and Q6(a)

Level AO1 Knowledge and understanding AO2 Application AO3 Analysis


2 marks 2 marks 4 marks

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

1 1–2 marks 1–2 marks 1–2 marks


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

0 0 marks 0 marks 0 marks


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

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Mark Grids for Section B

Used for Q5(b) and Q6(b)

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

0 0 marks 0 marks 0 marks 0 marks


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

© Cambridge University Press & Assessment 2024 Page 29 of 29


Cambridge International AS & A Level

BUSINESS 9609/13
Paper 1 Business Concepts 1 October/November 2024

1 hour 15 minutes

You must answer on the enclosed answer booklet.


* 8 0 2 7 3 4 7 7 1 1 *

You will need: Answer booklet (enclosed)

INSTRUCTIONS
● Answer five questions in total:
Section A: answer all questions.
Section B: answer one question.
● 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 40.
● 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 (SL) 337467/3
© UCLES 2024 [Turn over
2

Section A

Answer all questions.

1 (a) Define the term labour turnover. [2]

(b) Explain one implication for a business of having a low rate of labour turnover. [3]

2 (a) Define the term product differentiation. [2]

(b) Explain one reason why product development might be important for a business. [3]

3 (a) Define the term government grant. [2]

(b) Explain one advantage of using retained earnings as a source of business finance. [3]

4 Analyse one likely impact on a business of outsourcing its production process. [5]

Section B

Answer one question only.

EITHER

5 (a) Analyse two reasons why a business might decide to grow internally (organically). [8]

(b) ‘Even a friendly merger between two social media companies may not be successful.’

Evaluate this view. [12]

OR

6 (a) Analyse two reasons why a business might use external recruitment. [8]

(b) Evaluate whether the contribution of the managers in a new hospital will have the most
influence on its performance. [12]

© UCLES 2024 9609/13/O/N/24


3

BLANK PAGE

© UCLES 2024 9609/13/O/N/24


4

BLANK PAGE

Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every
reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
publisher will be pleased to make amends at the earliest possible opportunity.

To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge
Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download
at www.cambridgeinternational.org after the live examination series.

Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge
Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge.

© UCLES 2024 9609/13/O/N/24


Cambridge International AS & A Level

BUSINESS 9609/13
Paper 1 Short Answer/Essay October/November 2024
MARK SCHEME
Maximum Mark: 40

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 October/November 2024 series for most
Cambridge IGCSE, Cambridge International A and AS Level components, and some Cambridge O Level
components.

This document consists of 32 printed pages.

© Cambridge University Press & Assessment 2024 [Turn over


9609/13 Cambridge International AS & A Level – Mark Scheme October/November 2024
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 descriptions 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.

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)

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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).

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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9609 Business Studies – Paper 1 Annotations

Annotation Description Use

Tick Indicates a point which is relevant and rewardable.

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

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

Application Indicates where application is made to an appropriate business context.

Analysis Indicates where the answer has demonstrated analysis – questions 4, 5a, 5b, 6a and 6b.

Evaluation Indicates where the answer has demonstrated evaluation – (Section B Part (b) questions only).

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

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

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

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

Repetition Indicates where content has been repeated.

Level 1 Indicates a Level 1 point is made.

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Annotation Description Use

Level 2 Indicates a Level 2 point is made.

Level 3 Indicates a Level 3 point is made.

Off Page Comment Used to view PE comments on Practice Scripts only – displayed at the bottom of the screen when
clicking the comments button/toggle.

Guidance on using levels-based mark schemes

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.

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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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Mark Grids for Section A

Used for Q1(a), Q2(a) and Q3(a)

Two marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these marks.

AO1 Knowledge and understanding Marks

Knowledge of the term that demonstrates a clear understanding of the term. 2 Indicated by 2 where appropriate in the answer

Knowledge of the term that demonstrates a partial understanding of the term. 1 Indicated by 1 where appropriate in the answer

No creditable response. 0

Used for Q1(b), Q2(b) and Q3(b)

Three marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these marks.

AO1 Knowledge and understanding AO2 Application


1 mark 2 marks

2 marks
Developed application of one relevant point to a business context.
Indicated by a further where appropriate in the answer

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.
Indicated by 1 where appropriate in the answer Indicated by 1 where appropriate in the answer

0 marks 0 marks
No creditable response. No creditable response.

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Question Answer Marks

1(a) Define the term labour turnover. 2

Indicative content

Responses may include:

AO1 Knowledge and understanding

Clear understanding of the term labour turnover is worth 2 marks.

• The rate at which employees are leaving an organisation … during a specified period (2) or
• Number of employees leaving during a period, divided by the average number of employees during that period,
multiplied by 100 (formula) (2).

Partial understanding of the term is worth 1 mark.

• When employees leave a business

Accept all valid responses.

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Question Answer Marks

1(b) Explain one implication for a business of having a low rate of labour turnover. 3

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for identifying one implication of low labour turnover

• Reduces cost of employee replacements +


• Fewer interruptions in production process
• Motivated/contented employees
• Work culture likely to be supportive
• Expertise and experience retained

Implication could be negative.

• Lack of new ideas, creative/innovative activity


• High-cost employees

AO2 Application
2 marks for developed application/explanation of the implication given
1 mark for limited application/explanation of the implication given

The implications for a business with a low rate of labour turnover include: –
• Costs of replacing labour is small +
• Reduced loss in production time in training new employees
• Morale of workforce may remain high – less stress on remaining staff if few leave
• Knowledge and expertise is retained in the business
• Customer service standards maintained with consistency of staff
• Training costs and time saved

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Question Answer Marks

1(b) The implications above are all positive and may be experienced as a result of a positive working environment. However,
there may be some negative implications: –
• There may be some significant underlying problems in the business that need addressing -
• Low labour turnover may mean that poor performers are retained and this may affect morale
• The cost of employees may be very high, with many long-serving and senior employees earning high wages/salaries
• The labour force may lack new ideas – little creativity and innovation
• There may be few promotion opportunities with some leaving the business
• Existing staff may not have appropriate skills

Accept all valid responses.

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Question Answer Marks

2(a) Define the term product differentiation. 2

Indicative content

Responses may include:

AO1 Knowledge and understanding

Clear understanding of the term product differentiation is worth 2 marks.

• Making your product stand out from the competition … provides a competitive advantage or USP (2)

Partial understanding of the term product differentiation is worth 1 mark.

• Making your product stand out from the competition (1)


• Provide a competitive advantage or USP (1)

Accept all valid responses.

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Question Answer Marks

2(b) Explain one reason why product development might be important for a business. 3

Indicative content

Responses may include:

Note: Textbooks suggest that `product development` means further development of existing products in a product portfolio
as well as the development of new products.

AO1 Knowledge and understanding


1 mark for identifying one reason.

• Keep up with competition


• Exploit new markets/increase existing ones
• Allows use of new technology
• New products more appealing to customers/ more profitable
• Important to be agile, respond to market research findings and market trends
• Can extend the profitable life of a product.

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Question Answer Marks

2(b) AO2 Application


2 marks for developed application/explanation of one reason
1 mark for limited application/explanation of one reason

The reasons for the importance of product development include: –


• The need to respond to competitive products and initiatives and win new business
• Sell more to existing customers – increase the value offer
• Reduce costs associated with current products and services
• Produce new products and improve existing products in order to enter new markets
• Businesses need to innovate or die
• Support business growth – diversification and increased range of products/services
• Respond to changing customer/market expectations, trends and fashions
• Exploit new technology opportunities-increase sales and profits
• May lead to important extension strategies.

Accept all valid responses.

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Question Answer Marks

3(a) Define the term government grant. 2

Indicative content

Responses may include:

AO1 Knowledge and understanding

Clear understanding of the term government grant is worth 2 marks.

• Money given by government to a business … which normally does not need to be paid back or to fund a project or
operation such as job stimulation/initiative (2)

Partial understanding of the term government grant is worth 1 mark.

• Money given by government to a business (1)

Accept all valid responses.

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Question Answer Marks

3(b) Explain one advantage of using retained earnings as a source of business finance. 3

Indicative content

AO1 Knowledge and understanding


1 mark for identifying one advantage

• Provides a healthy pool of working capital – to purchase assets/invest – or to pay off debts
• Internal funds quicker to organise and access
• Internal control of business not affected
• Avoids business debt
• Reduced costs/no interest payments.

AO2 Application
2 marks for developed application/explanation of one advantage
1 mark for limited application/explanation of one advantage.

The advantages of using retained earnings as a source of finance include:

• May be readily available and may be substantial if accumulated over time


• Cheap source of finance – unlike loans no interest payments or fees to pay
• Flexible source of finance – no conditions as to how to use – can use for R&D or update equipment or hire more staff
• Fast source of finance – no waiting for lenders to process a request
• Ideal for urgent/emergency funding.

Accept all valid responses.

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Question Answer Marks

4 Analyse one likely impact on a business of outsourcing its production process. 4

Note: No marks can be awarded if a relevant impact is not given.

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for giving one likely impact

• Likely to lead to production cost savings


• But could lead to increased production costs
• Allows a business to exploit its core skills
• Take advantage of production skills and expertise elsewhere
• Could lose control of the production process-reduced quality – inconsistent delivery
• May damage the reputation of the business
• May attract criticism from pressure groups
• May mean internal redundancies

AO2 Application
2 marks for developed application/explanation of the chosen impact
1 mark for limited application/explanation of the chosen impact

• Outsourcing offers a number of advantages to a business – notably the possibility of lower costs – due to lower labour
rates – increased efficiency
• Outsourcing also offers a business the opportunity to concentrate on its core competences, which may not include its
production process

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Question Answer Marks

4 • Outsourcing production can mean increased production costs


• Could mean reputational damage if production quality suffers.
• Could attract criticism from pressure groups.

AO3 Analysis
2 marks for developed analysis of the chosen impact
1 mark for limited analysis of the chosen impact

• Outsourcing the production process allows a business to enjoy significant reductions in the cost of production –
especially with lower labour and land costs (depending on the selection of an appropriate outsource business)
• Expensive capital investment in specialised technology is avoided-allowing focus on other activities-marketing, product
design.
• Allows a renewed focus on the core business – manufacturing/production can be time-consuming and high
maintenance – a new focus on corporate aims and objectives
• Outsource for the expertise and technology of a production process, which may not be in-house but is available with
outsource companies
• Outsourcing may provide more time for innovation and flexibility – opportunity to better meet changing business and
commercial conditions

Outsourcing may however impact on a business in a negative way: –


• Control of the production process is lost – outsource company may slow the production time – language and cultural
barriers
• Outsourcing may lead to a reduction in quality – poor working practices – exploitation of labour
• Outsourcing to a specialist production company may mean a substantial increase in production costs
• Impact on in-house employees – jobs lost – fear for the future – morale reduced
• Customers may have concerns and move to other businesses – ethical concerns
• Outsourcing company may go out of business
• There may be risks to privacy – intellectual capital – data protection

Accept all valid responses.

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Question Answer Marks

5(a) Analyse two reasons why a business might choose to grow internally (organically). 8

There are 8 marks in total for Q5(a) – 4 marks for each of the two reasons given:
1 mark for
1 mark for
2 marks for

Indicative content

Note: This question does not mention alternatives to internal growth or ask for comparisons between internal and external
growth though such an answer approach is acceptable and rewardable.
Some candidates may simply analyse why a business may seek to grow (through building an additional factory, opening up
another shop, or operating in an additional different market) and make little reference to internal or organic growth issues.
This approach is also acceptable and rewardable.

Responses may include:

AO1 Knowledge and understanding


1 mark for giving ONE reason

• Reduces risk/ threat of poor mergers/alliances


• Not subject to external contingencies
• Business culture and morale retained
• Preference to remain local/national
• Avoid potential high costs involved with external growth

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Question Answer Marks

5(a) AO2 Application


1 mark for application of one reason

• The risk to a business is lower – own values and operations are retained
• No necessity to seek strategic alliances or wait for the acceptable merger – business focus is maintained
• Risk of culture clash with another business is avoided – less disruption to workers – business morale
• Avoidance of significant merger/acquisition financial costs – external growth can be very expensive

AO3 Analysis
2 marks for developed analysis of one reason L2
1 mark for limited analysis of one reason L1

• Internal growth is relatively inexpensive – lower investment required – retained profits used rather than additional loans
or shares
• Internal growth relies on the strengths of the business, built up over the years – building on brand reputation, best-
selling products, loyal employees – evolution rather than revolution reduces business risks
• Internal growth is easier to control and manage – owners and managers retain total control of business operations and
do not face unknown factors resulting from a merger/acquisition
• Internal corporate culture is maintained – organic growth allows work culture and management style to remain and
avoids possible problems associated with integration with other businesses
• Maintains healthy gearing position – internal growth often funded from equity – either retained profits or issuing shares
to investors – external debt is avoided – providing financial stability and solvency
• Internal growth ensures continuity – focus of the business on pre-established policies is maintained – management and
workers on the same page
• Existing owners and managers may have limited ambition – limited internal growth may be seen as sufficient

Accept all valid responses.

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Question Answer Marks

5(b) ‘Even a friendly merger between two social media companies may not be successful ` Evaluate this view. 12

There are 12 marks for Q5(b):


2 marks for
2 marks for
2 marks for
6 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


2 marks for developed knowledge L2
1 mark for limited knowledge L1

• Merger/takeover is the acquisition of the shares and assets of another company by a business in order to form a new
legal entity
• Friendly mergers result when owners and directors of both companies are in agreement
• Hostile mergers occur when one company acquires a target company without the consent of the target company
• Social media companies are interactive technologies that facilitate the sharing of information, ideas, interests or other
forms of expression through virtual communities and networks

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Question Answer Marks

5(b) AO2 Application


2 marks for developed application L2
1 mark for limited application L1

• A significant proportion of mergers (friendly and hostile) fail to meet objectives – shareholder value and competitive
advantage not achieved
• Friendly mergers more likely to achieve objectives – most mergers are friendly but 60–70% fail to realise expectations
• Social media companies merge in order to achieve the advantages of any other merger – external growth, exploit
common capabilities and competences, produce economies of scale, gain more efficiencies, bring more connectivity
and utility to the service – e.g. merger of Facebook and WhatsApp in 2014
• The high rate of mergers failure to meet objectives suggests a number of fundamental weaknesses associated with the
planning and operation of mergers

AO3 Analysis
2 marks for developed analysis L2
1 mark for limited analysis L1

• Insufficient due diligence and poor pre-merger negotiation – critical performance information may not be disclosed from
either company – assumptions made about the future of the new business may be wrong
• Synergies may be overestimated – revenue increases and cost reduction aims are often not achieved –
implementation priorities not set – growth trajectory of the merger may be uncertain
• Lack of cultural fit – there is an inability to recognise and manage the cultural differences between the merged
businesses – change management is poor
• Poor top management of the integration of the two companies into the newly-formed business – post-merger
integration is not led/managed effectively – the absence of a new strategic plan to secure the anticipated advantages of
the merger – poor communication between the merged companies – no sense of urgency for changes needed –
empire building more important than integration
• External factors may reduce the anticipated success of the merged business – the competition make take advantage of
any merger disruption or uncertainty – there may be technological innovations that undermine the reasons for the
merger – external factors such as a worldwide pandemic are factors outside of business managers’ control

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Question Answer Marks

5(b) AO2 Application


2 marks for developed application L2
1 mark for limited application L1

• chocolate manufacturer – may give named examples, brands or foods, could refer to specific parts of the process. The
manufacturer could undertake backward vertical integration with a supplier of cacao beans.

Packaging is not application unless explained in relation to chocolate – it can apply to any manufacturer

AO3 Analysis
2 marks for developed application L2
1 mark for limited application L1

• horizontal integration is good for increasing market share by combining sales of both businesses, whilst getting rid of a
competitor
• mergers can bring together complementary ideas and techniques to aid product development e.g., new chocolate
recipe
• external growth is good for entering new markets where the other business is already established and successful
• external growth is a quick method of expansion as all factories, equipment and employees are already in place
• takeover may be too expensive for a business aiming for quick profit maximisation or a small business
• internal growth is less expensive and may appeal more to a smaller business
• depending on what the objectives are it is possible to achieve them without growth e.g., motivating/training workers for
profit maximisation
• a new business may focus on survival and then slower internal growth building on their success

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Question Answer Marks

5(b) AO4 Evaluation


6 marks for evaluation
Developed/Supported judgement in context 6 marks
L3

Developed/Reasonable evaluative comments in context 5 marks


L3

Developed/Supported judgement without context 4 marks


L2

Developed/Reasonable evaluative comments without context 3 marks


L2

Limited supported judgement 2 marks


L1

An attempt to balance the arguments/Weak attempt at evaluative comments 1 mark


L1

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Question Answer Marks

6(a) Analyse two reasons why a business might use external recruitment. 8

There are 8 marks in total for Q5(a) – 4 marks for each of the two reasons given:
1 mark for
1 mark for
2 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for giving one reason

• Acquire external expertise/experience


• Cheaper in the long term – saves training costs
• There is an internal skill gap that needs filling
• The external pool of relevant employees is large
• To shake up and change the internal working culture – new ideas

AO2 Application
1 mark for application of one reason

• External recruitment offers an alternative to a business as it seeks to develop its employees into an effective workforce
• External recruitment is often used to complement internal recruitment – it provides advantages to a business that may
not be available using only internal recruitment

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Question Answer Marks

6(a) AO3 Analysis


2 marks for developed analysis of one reason L2
1 mark for limited analysis of one reason L1

• External recruitment may be used to bring new ideas, new perspectives into the business – to support plans, to
become more competitive
• External recruitment may be used to import new skills and expertise into the business – to meet the demands of
changing technologies, customer expectations – stay competitive
• External recruitment may mean access to a larger pool of prospective employees – the internal workforce may need
refreshing and motivating
• A business may have a policy of equality and diversity – this may require external recruitment
• A business may need to recruit new managers and leaders as employees retire and/or leave – internal employees may
not be ready for promotion
• External recruitment may be used to remove complacency – recruit experienced change managers to implement
change and invigorate the organisation

Accept all valid responses.

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Question Answer Marks

6(b) Evaluate whether the contribution of the managers in a new hospital will have the most influence on its 12
performance.

There are 12 marks for Q6(b):


2 marks for
2 marks for
2 marks for
6 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


2 marks for developed knowledge L2
1 mark for limited knowledge L1

• Business managers are employed to oversee and develop the operational and business procedures within a business
– duties include setting objectives, making plans, giving direction to the organisation
• Specific business manager roles have been set out by theorists such as Fayol and Mintzberg
• Business performance is concerned with and measured by such factors as – profitability/efficient resource utilisation,
customer/client satisfaction, organisational sustainability, and quality of product/service provision
• Hospitals are organisations that have a responsibility to effectively allocate resources in order to provide healthcare to
patients who may require specialist medical support – treat and make sick patients more healthy

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Question Answer Marks

6(b) AO2 Application


2 marks for developed application L2
1 mark for limited application L1

• Managers can provide purpose and a sense of direction to any business


• Managers may be general managers or more specialist managers – such as finance managers or HR managers and
will make a specific and professional contribution to a business
• Business managers are internal stakeholders and will normally take account of the views and concerns of other internal
and external stakeholders when carrying out their responsibilities
• A new hospital may provide specific opportunities for managers in pursuit of effective performance – opportunities to
develop a rich organisational culture, to establish strong financial budgets and parameters, to invest in cutting edge
technology and expertise/experience, and establish best practice medical and management processes

AO3 Analysis
2 marks for developed analysis L2
1 mark for limited analysis L1

The ways in which managers can contribute to the performance of a hospital include the following:
• Develop operational and corporate goals for the organisation – provide a vision and set of objectives designed to
deliver strong healthcare outcomes
• Design appropriate organisational structure and operational processes – which are supportive of the organisational and
project objectives
• Recruit the appropriate levels and skills of the workforce – professional staff and support staff – nurses, doctors,
porters and cleaners
• Create an organisational culture that is appropriate for a hospital – a motivating work environment that supports
emergency requirements as well as more controlled working processes
• Provide the appropriate management styles suited to the demands of hospital work – democratic, autocratic, paternal,
and laisse-faire may all be relevant given different demands and situations
• Provide an appropriate system of financial control – ensure that resources are available and that budgets and financial
objectives are followed

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Question Answer Marks

6(b) • Ensure that there is an appropriate organisation-patient-customer relationship – consider the possible contribution of
CRM
• Design and maintain appropriate communication systems in the hospital – efficient spread of information between
departments and between the hospital and all its stakeholders
• Maintain a momentum for high quality performance – including a culture that rewards performance and provides
stability for all staff

AO4 Evaluation
6 marks for evaluation

Developed/Supported judgement in context 6 marks


L3

Developed/Reasonable evaluative comments in context 5 marks


L3

Developed/Supported judgement without context 4 marks


L2

Developed/Reasonable evaluative comments without context 3 marks


L2

Limited supported judgement 2 marks


L1

An attempt to balance the arguments/Weak attempt at evaluative comments 1 mark


L1

A judgement/decision is made in relation to the view that managers in a new hospital will have the most influence on its
performance.
Such judgements may be made at any point in the essay, not just in a concluding section
• The contribution that managers can make to a hospital, analysed above, is of course, dependent on manager skills and
expertise – ineffective managers can reduce the performance of a hospital and get in the way of professional and
support staff
• A judgement might be made that if managers are competent at corporate and departmental levels, they can
significantly influence hospital performance – they take vital and appropriate decisions and create working
environments that produce high quality care
© Cambridge University Press & Assessment 2024 Page 29 of 32
9609/13 Cambridge International AS & A Level – Mark Scheme October/November 2024
PUBLISHED
Question Answer Marks

6(b) • It might be suggested that managers having the most influence can be said to be a generalisation that overvalues the
potential contribution of managers in a hospital, and underestimates the contribution of other factors of production – it
can be argued that the professional health specialists in a hospital have at least the same, or possibly more, influence
– the cutting edge technology in the hospital is also critical to health care outcomes
• Also, the reference to ‘managers’ needs further consideration – there are general and specialist managers – corporate,
departmental, project managers – each category of manager can make contributions to performance or, indeed, hinder
quality performance

Accept all valid responses.

© Cambridge University Press & Assessment 2024 Page 30 of 32


9609/13 Cambridge International AS & A Level – Mark Scheme October/November 2024
PUBLISHED
Mark Grids for Section B

Used for Q5(a) and Q6(a)

Level AO1 Knowledge and understanding AO2 Application AO3 Analysis


2 marks 2 marks 4 marks

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

1 1–2 marks 1–2 marks 1–2 marks


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

0 0 marks 0 marks 0 marks


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

© Cambridge University Press & Assessment 2024 Page 31 of 32


9609/13 Cambridge International AS & A Level – Mark Scheme October/November 2024
PUBLISHED
Mark Grids for Section B

Used for Q5(b) and Q6(b)

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

0 0 marks 0 marks 0 marks 0 marks


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

© Cambridge University Press & Assessment 2024 Page 32 of 32


Cambridge International AS & A Level

BUSINESS 9609/13
Paper 1 Business Concepts 1 May/June 2024

1 hour 15 minutes

You must answer on the enclosed answer booklet.


* 1 1 2 5 9 2 6 3 9 1 *

You will need: Answer booklet (enclosed)

INSTRUCTIONS
● Answer five questions in total:
Section A: answer all questions.
Section B: answer one question.
● 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 40.
● 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 (SL) 332166/2
© UCLES 2024 [Turn over
2

Section A

Answer all questions.

1 (a) Define the term direct cost. [2]

(b) Explain one method of improving cash flow for a business. [3]

2 (a) Define the term added value. [2]

(b) Explain one quality an entrepreneur needs for success. [3]

3 (a) Define the term primary research. [2]

(b) Explain one limitation to a business of using sampling. [3]

4 Analyse one possible impact on a business of operating over maximum capacity. [5]

Section B

Answer one question only.

EITHER

5 (a) Analyse two benefits to the workforce of McGregor’s Theory X management. [8]

(b) Evaluate whether cooperation between management and the workforce is the most important
factor in the success of a car manufacturer. [12]

OR

6 (a) Analyse two benefits to a business of improving the sustainability of its operations. [8]

(b) ‘Supply Chain Management is the most important operations factor for the success of a large
internet retailer.’

Evaluate this view. [12]

© UCLES 2024 9609/13/M/J/24


3

BLANK PAGE

© UCLES 2024 9609/13/M/J/24


4

BLANK PAGE

Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every
reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
publisher will be pleased to make amends at the earliest possible opportunity.

To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge
Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download
at www.cambridgeinternational.org after the live examination series.

Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge
Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge.

© UCLES 2024 9609/13/M/J/24


Cambridge International AS & A Level

BUSINESS 9609/13
Paper 1 Business Concepts 1 May/June 2024
MARK SCHEME
Maximum Mark: 40

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 2024 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 34 printed pages.

© Cambridge University Press & Assessment 2024 [Turn over


9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2024
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 descriptions 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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9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2024
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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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9609 Business Studies – Paper 1 Annotations

Annotation Description Use

Tick Indicates a point which is relevant and rewardable.

Cross Indicates a point which is inaccurate/irrelevant and not


rewardable.

Knowledge Indicates knowledge and understanding of the concepts


and issues relating to the question.

Application Indicates where application is made to an appropriate


business context.

Analysis Indicates where the answer has demonstrated analysis –


questions 4, 5a, 5b, 6a and 6b.

Evaluation Indicates where the answer has demonstrated evaluation -


(Section B Part (b) questions only).

Benefit of Used when the benefit of the doubt is given in order to


doubt reward a response.

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

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

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

Repetition Indicates where content has been repeated.

Level 1 Indicates a Level 1 point is made.

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Annotation Description Use

Level 2 Indicates a Level 2 point is made.

Level 3 Indicates a Level 3 point is made.

Off Page Used to view PE comments on Practice Scripts only –


Comment displayed at the bottom of the screen when clicking the
comments button/toggle.

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Guidance on using levels-based mark schemes

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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Mark Grids for Section A

Used for Q1(a), Q2(a) and Q3(a)

Two marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these marks.

AO1 Knowledge and understanding Mark


s

Knowledge of the term that demonstrates a clear understanding of the 2


term.

Knowledge of the term that demonstrates a partial understanding of 1


the term.

No creditable response. 0

Used for Q1(b), Q2(b) and Q3(b)

Three marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these marks.

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 question. Limited application of one relevant point to a business context.

0 marks 0 marks
No creditable response. No creditable response.

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Question Answer Marks

1(a) Define the term direct cost. 2

Indicative content

Responses may include:

AO1 Knowledge and understanding


Clear understanding 2 marks
 Costs that can be clearly identified/connected/directly linked with each unit of production and can be allocated to a cost
centre.

Partial understanding 1 mark


 Expenses related to a product or service
 Related to producing a good
 Cost directly related to a cost centre

Accept all valid responses.

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PUBLISHED
Question Answer Marks

1(b) Explain one method of improving cash flow for a business. 3

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for identifying one method of improving cash flow for a business
 Overdraft
 Short-term loan, sale of assets
 Sale and leaseback
 Reduce customer credit terms / discounts for early payment
 Debt factoring
 Increase cash inflow
 Decrease cash outflows – delay payments to suppliers (creditors)/obtain discounts
 Delay spending on capital equipment
 Use leasing, cut overheads
 Produce a cash flow forecast

Also accept long-term solutions:


 More motivated staff
 Increased revenue
 Increased productivity
 Improved inventory management

AO2 Application
2 marks for a developed application/explanation of one method of improving cash flow for a business
1 mark for a limited application/explanation of one method of improving cash flow for a business

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Question Answer Marks

1(b)  An overdraft is where a bank agrees to a business borrowing up to an agreed limit as and when required – therefore
increase cash inflow
 A short-term loan allows a fixed amount to be borrowed for an agreed length of time – which increases cash inflow
 Sale of assets allows cash to be obtained from selling off redundant assets – which will boost cash inflow
 Sale and leaseback allows an asset to be sold then leased back – increase cash inflow
 Reduce credit terms to customers i.e. from 2 months to 1 month – will enable cash to be brought into the business
sooner
 Debt factoring enables customers’ bills to be bought – means an immediate cash boost
 Make more sales – reduce price to encourage customers to buy more, more advertising
 Delay payments to suppliers i.e. pay a bill after 3 months instead of 2 months – cash outflows will fall in short term
 Delay spending on capital equipment – means money is kept in the business that might have gone out
 Use leasing – no large cash outlay is made – so less money going out of the business
 Cut overheads (that do not directly affect output) – i.e. promotion costs – so less money going out of the business
 More motivated staff – make less mistakes so less wastage of materials
 Improved productivity – higher output so potential for higher sales
 Improved inventory management – can free up cash
 Increase revenue – by diversifying

Accept all valid responses.

© Cambridge University Press & Assessment 2024 Page 12 of 34


9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

2(a) Define the term added value 2

Indicative content

Responses may include:


AO1 Knowledge and understanding
Clear understanding 2 marks
 The difference between the cost of purchasing raw materials and the price the finished goods are sold for.
 Economic value added to an existing service.
 Output worth more than input.

Partial understanding 1 mark


 The impact of a production process.

Accept all valid responses.

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Question Answer Marks

2(b) Explain one quality an entrepreneur needs for success. 3

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for identifying one quality an entrepreneur needs for success

Successful entrepreneurial qualities include:


 Risk taking
 Multi-skilled
 Leadership skills
 Self-confidence/ability to bounce back
 Business knowledge
 Good motivator
 Resilience
 Hard-working
 Good manager
 Creative/innovative
 Good /effective communicator
 Independent
 Initiative
 Intelligent
 Networker
 Optimistic
 Organised
 Resourceful
 Results driven
 Self-motivated / determined /focused/committed
 Team player

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Question Answer Marks

2(b) AO2 Application


2 marks for developed explanation of one quality an entrepreneur needs for success
1 mark for limited explanation of one quality an entrepreneur needs for success

 Risk taking – entrepreneurs must be willing to take risks to see results – this can often be a financial risk.
 Innovation – means they can carve a niche in a market – which will attract customers.
 Commitment and self-motivation – as it requires long hours and hard work to be successful.
 Multi-skilled – as they will have to promote and sell a product or service, manage the finances, deal with different
customers, possibly hire new people.
 Leadership – has to lead by example – and have a personality that encourages employees to follow them.
 Self-confidence and ability to bounce back – as many businesses fail – so the strength not to be discouraged – self-
belief.
 Creative thinking – to identify gaps in the market.
 Knowledgeable – entrepreneurs will often have in-depth knowledge of a particular industry or market – helps when
dealing with customers.

Accept all valid responses.

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Question Answer Marks

3(a) Define the term primary research. 2

Indicative content

Responses may include:

AO1 Knowledge and understanding


Clear understanding 2 marks
 The collection of first-hand data that is directly related to the needs of a business
 Collecting data for the first time/not been collected before

Partial understanding 1 mark


 Any type of research you collect yourself.

Accept all valid responses.

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Question Answer Marks

3(b) Explain one limitation to a business of using sampling. 3

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for identifying one limitation to a business of using sampling

 The cost of taking a sample


 Possible sample error
 Sample may be unrepresentative
 There may be bias in the sample
 The time taken may be excessive
 The sample may be poorly constructed
 The sample is too small

AO2 Application
2 marks for developed explanation of one limitation to a business of using sampling
1 mark for limited explanation of one limitation to a business of using sampling

 Can be very expensive – if the sample is large.


 Greater risk of sampling error – means data will be inaccurate – wrong conclusions drawn.
 Sample not representative of the target market – if samples are too small.
 Prone to sampling bias – not representative if less care is taken when selecting a sample.
 Might not be practical – if sampling requires many visits across a country – expensive
 Time consuming – if sample is not conveniently located.
 Hard to eliminate bias – when choosing the sample
 Inadequate knowledge in the subject – if the researcher lacks specialised knowledge.
 Small sample size not representative of whole market.

Accept all valid responses

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Question Answer Marks

4 Analyse one possible impact on a business of operating over maximum capacity. 5

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for identifying one possible impact of operating at over maximum capacity

 Stress on employees
 Impact quality
 Business inflexibility
 Unable to maintain machinery
 Strain on business resources – inventory
 Sell more
 Economies of scale

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Question Answer Marks

4 AO2 Application
2 marks for a developed explanation of one possible impact of operating at over maximum capacity
1 mark for limited explanation of one possible impact of operating at over maximum capacity

 The impact could affect staff – who are likely to be put under excessive stress.
 Could impact on quality – if staff rush work and make mistakes/increase waste
 Business becomes inflexible – as has no room to increase output for new orders/opportunity cost of not responding to
new product demand.
 Might not be able to maintain machinery – which could break down.
 Can put a strain on business resources – staff may need extra training
 More products produced and available to sell
 Costs fall due to increased output

AO3 Analysis
2 marks for developed analysis of one possible impact of operating at over maximum capacity
1 mark for limited analysis of one possible impact of operating at over maximum capacity

 Overworked staff could make more mistakes – a reduction in quality could impact brand image and lost sales.
 Could lead to high absenteeism and high staff turnover – increase recruitment costs – don’t have enough staff to meet
orders.
 May have to increase amount of overtime to meet orders – raise business costs.
 If operating over maximum capacity then new orders might not be possible – lose potential customers and sales.
 If demand reduces stock will remain unsold therefore wastage/opportunity cost
 If machines break down due to lack of maintenance – production stops – lose or delay orders – gives a bad reputation
for being unreliable.
 Average costs can rise – due to falling levels of efficiency such as machines breaking down.

Accept all valid responses.

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Question Answer Marks

5(a) Analyse two benefits to the workforce of McGregor’s theory X management. 8

There are 8 marks in total for Q5(a) – 4 marks for each of the two benefits to the workforce of McGregor’s Theory X
Management:

1 mark for
1 mark for
2 marks for

Indicative content

Responses may include:


AO1 Knowledge and understanding
1 mark for identifying one benefit to a workforce of McGregor’s theory X management

 Theory X takes the position that employees are reluctant to change and that they require significant external motivation
from their managers to complete their work.
 Employees dislike work and avoid it where possible.
 Employees will avoid responsibility and are not creative
 When staff are motivated only by money
 Employees know exactly what is required of them
 Some employees thrive under an authoritative management style
 Employees can focus on achieving goal
 Some employees may not have the skills
 No room for ambiguity
 Benefit new starters or people with lack of experience
 Employees may not want to make decisions in a crisis
 Close supervision can motivate some workers

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Question Answer Marks

5(a) AO2 Application


1 mark for application/explanation of one benefit to a workforce of McGregor’s theory X management

 Can benefit employees who are motivated by money – to achieve targets


 Employees know exactly what is required of them – so can complete work set
 Some employees thrive under an authoritative management style – perhaps if new to a job
 Employees can focus on achieving goal – so they achieve it
 Some employees may not have the skills - to take on more responsibility
 No room for ambiguity – as roles are clear
 Can benefit new starters or people with lack of experience – who need a lot of guidance
 Employees may not want to make decisions in a crisis – and can rely on the manager to do this
 Close supervision can motivate some workers to work more quickly – as they may naturally be lazy

AO3 Analysis
2 marks for developed analysis of one benefit to a workforce of McGregor’s theory X management L2
1 mark for limited analysis of one benefit to a workforce of McGregor’s theory X management L1

 If employees are motivated by money – theory X may enable targets to be met and subsequent financial rewards.
 Lazy employees are more likely to be kept on track – so less likely to face disciplinary/performance issues
 Removes the stress of having to make decisions (in a crisis) – so better able to cope at work
 Being able to complete work set – means they meet targets set by managers
 Newer employers are able to settle into job faster – might not leave
 Not given additional responsibility – so don’t feel overburdened

Accept all valid responses.

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Question Answer Marks

5(b) Evaluate whether cooperation between management and the workforce is the most important factor in the success 12
of a car manufacturer.

There are 12 marks for Q5(b):

2 marks for
2 marks for
2 marks for
6 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


2 marks for developed knowledge L2
1 mark for limited knowledge L1

 Cooperation is the action or process of working together to achieve the same goal.
 A state of relations where employee and management work together to accomplish certain goals using mutually
acceptable means.
 It is the outcome of a continuous process of enhancing mutual trust and respecting through sharing information,
discussion, consultation and negotiation.
 Success can be defined by a number of factors; market share, profits, share value, productivity, labour turnover,
employee relations, environmental credentials, brand image.

© Cambridge University Press & Assessment 2024 Page 22 of 34


9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

5(b) AO2 Application


2 marks for developed application L2
1 mark for limited application L1

 Need to cooperate in different teams that work on different parts of the car such as chassis
 Companies like Nissan have Kaizen that involves cooperation between management and workers
 Car manufacturer related terms e.g. tyres, chassis, robots, assembly, quality circles, quality assurance, production
targets, safety, car designs, TQM
 Named businesses e.g. Ford, BMW, Skoda, Audi, Nissan

AO3 Analysis
2 marks for developed analysis L2
1 mark for limited analysis L1

 Cooperation can lead to a more harmonious workplace - It can improve productivity – reduce labour turnover.
 A strong ethos of cooperation and teamwork – where ideas are shared - means objectives and goals can be achieved
successfully – customers are satisfied.
 A sense that everyone is pulling in the same direction – and are invested in the business success – can increase
productivity – increase morale – attract the best workers.
 Training and resources may be required to ensure effective cooperation – which can increase costs.
 Goals that ensure different teams, including managers need to cooperate – can improve productivity and morale.
 Communication channels between all related parties, including unions – need to work – ensure harmonious industrial
relations.
 Employees need to be empowered to contribute – as creative ideas could give the business a competitive edge – or
help streamline production – become more efficient.
 The less employee conflicts the manager has to deal with the more they can focus on helping the team achieve its
objectives – production could increase – more cars made in shorter period of time.
 When a mutual level of respect exists between managers and workers – willingness to perform well - then goals can be
achieved.
 Cooperation can enable a trusting environment – where employees feel able to take risks – increase engagement
levels of employees – improve retention rates.
 Workers may need to feel they are valued financially before cooperating – if not could lead to industrial action –
production stops.

© Cambridge University Press & Assessment 2024 Page 23 of 34


9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

5(b) AO4 Evaluation


6 marks for evaluation

Developed/Supported judgement in context L3 6 marks

Developed/Reasonable evaluative comments in context L3 5 marks

Developed/Supported judgement without context L2 4 marks

Developed/Reasonable evaluative comments without context L2 3 marks

Limited supported judgement L1 2 marks

An attempt to balance the arguments/Weak attempt at evaluative comments L1 1 mark

A judgement/conclusion is made that cooperation between managers and the workforce is the most important factor in the
success of a car manufacturer.
These judgements/conclusions may be made at any point in the essay, not only in a concluding section.
 A conclusion that cooperation between workers and managers should be seen as just one factor in the success of a
business – and other factors are just as important – such as marketing or product quality.
 A judgement that other business activities are more important, such as marketing strategies – as they need to make
the right car or it won’t sell as well as competitors.
 A conclusion about what the car manufacturer hopes to achieve in the long and short term (what are its corporate goals
and values) and whether this is dependent on cooperation between managers and workers.
 A judgement that the onus lies on good leadership to make cooperation work or that it depends on what the employees
motivations are – not everyone is interested in cooperation.
 A judgement that cooperation may solely depend on how well represented workers are by a union.
 A judgement that enhanced productivity is key to a successful car manufacturer – and should be achieved by any
means necessary.

© Cambridge University Press & Assessment 2024 Page 24 of 34


9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

5(b)  A judgement that car manufacturers operate in an internationally competitive market – so it is essential to do everything
possible to foster cooperation.
 A judgement about the environment in which the car manufacturer exists and that it is subject to factors beyond its
control e.g. economic downturn or worldwide pandemic – so job security cannot be guaranteed.
 A judgement about cooperation depending on factors such as – the strength/role of trade unions – location factors such
as the EU or where labour is cheapest – or how successfully the business changes to electric car production in
comparison to its competitors.

Accept all valid responses.

© Cambridge University Press & Assessment 2024 Page 25 of 34


9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

6(a) Analyse two benefits to a business of improving the sustainability of its operations. 8

There are 8 marks in total for Q6(a) – 4 marks for each of the two benefits to a business of improving the sustainability of its
operations.

These 4 marks consist of :


1 mark for
1 mark for
2 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


1 mark for identifying one benefit of improving the sustainability of operations

 Fosters public support


 Builds and improves reputation
 Meets customers’ expectations
 Enables business to develop new growth opportunities
 Attract investors
 Motivated staff
 Good publicity/media interest
 Improved relationships with local community
 Customers might be willing to pay more
 Reduces waste
 Long term profits increase
 Protect your brand/positive brand/aligns with CSR

© Cambridge University Press & Assessment 2024 Page 26 of 34


9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

6(a)  Give USP


 Can help attract employees
 Government support
 Reduces carbon tax payable

AO2 Application
1 mark for application/explanation of one benefit of improving the sustainability of operations

 Fosters public support – as the general public are increasingly supportive of sustainability in all aspects of their
lives/less pressure group activity
 Builds and improves reputation – as can be used as an USP – especially if competitors haven’t moved their production
processes in this direction yet.
 Meets customers’ expectations – especially if this is what customers look for in products and services
 Enables business to develop new growth opportunities – entry into different markets
 Attract investors – who value sustainable businesses in their shares portfolio.
 Less waste due to more environmentally friendly processes
 Staff identify with business values/sustainability
 Good publicity – due to increasing media interest in “green” issues.
 Improved relationships with local community – due to less pollution.
 Customers might be willing to pay more – for a sustainably produced product.
 Protect your brand – as less likely to attract negative news – about pollution or poor working conditions.
 Can help attract employees – who want to work for a business who values sustainability.
 Government support - in form of grants/tax breaks
 Carbon tax higher if business is not sustainable

© Cambridge University Press & Assessment 2024 Page 27 of 34


9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

6(a) AO3 Analysis – up to 2 marks for analysis of each factor


2 marks for developed analysis of one benefit L2
1 mark for limited analysis of one benefit L1

 If the reputation of business improves – this can benefit in higher sales – market share.
 If customers are willing to pay a higher price for sustainably produced products – can lead to increased profit margin.
 Attract investors who want a more “green” share portfolio – increased value of company.
 Less waste leads to long term increase in profits due to reduced costs
 Products meet customer expectations – lead to increased customer loyalty.
 Attracts employees who want to work for a sustainable business – who might bring new ideas into the business –
competitive advantage.
 Employees may share the values of the business – lower labour turnover – less recruitment costs.
 Good relationship with local community – less protests or negative news – could affect brand image.
 Good publicity – could lead to increased sales.
 New sustainable machinery and process might be expensive – but will pay for itself through increased sales.
 Government support – grants are source of finance to develop/grow / tax breaks reduce costs so higher profit margins
 Reduced carbon tax reduces tax so profits can increase

Accept all valid responses.

© Cambridge University Press & Assessment 2024 Page 28 of 34


9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

6(b) ‘Supply Chain Management is the most important operations factor to the success of a large internet retailer.’ 12

Evaluate this view.

There are 12 marks for 6(b):

2 marks for
2 marks for
2 marks for
6 marks for

Indicative content

Responses may include:


AO1 Knowledge and understanding
2 marks for developed knowledge L2
1 mark for limited knowledge L1

 Supply Chain Management (SCM) is the management of the flow of goods and services and includes all processes
that transform raw materials into final products.
 SCM is the management of the flow of goods or services from procurement to delivery.
 SCM includes all the activities that must take place to get the right product into the right consumers hands in the right
quantity at the right time.
 Internet retailer is a business that sells its products or services via a website on the internet or app and might not have
a physical store you can visit.

© Cambridge University Press & Assessment 2024 Page 29 of 34


9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

6(b) AO2 Application


2 marks for developed application L2
1 mark for limited application L1

 Businesses like Amazon have regional warehouses to ensure fast delivery to customers
 Websites and apps are user friendly e.g. Apple, Nike
 Named businesses e.g. Amazon, Apple, Nike, can be country specific
 Key internet retailer related terms e.g. shopping cart, website, warehouse, no shop/store, online

AO3 Analysis
2 marks for developed analysis L2
1 mark for limited analysis L1

 If suppliers don’t supply on time – customers may not get goods on time – lead to bad reputation for reliability – shop
elsewhere.
 Leads to increased efficiency – order to despatch time can be reduced – lead to customer loyalty.
 Prices can be negotiated with suppliers – which can lead to lower unit costs – especially if a larger retailer. Cost
savings can be passed onto consumers – in the form of lower prices – competitive advantage.
 Improved flexibility – which may mean being able to supply customers with goods 24/7
 Quality might suffer if costs are driven too low – supplier might not be dedicated if not given a fair price – impact
reputation.
 Minimises operating expenses such as warehousing and transportation costs – increased profit margins.
 Can be expensive to implement – requires large investment – only suitable for large businesses.
 Can be very complex to implement and staff require training – causing demotivation – increased expenses.
 More satisfied customers – less complaints – lower returns rates.
 Can save on warehouse costs – through JIT – decreased costs.
 Outsourcing deliveries – can lead to increase in customer complaints – customers change to alternative retailers.

© Cambridge University Press & Assessment 2024 Page 30 of 34


9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

6(b) AO4 Evaluation


6 marks for evaluation

Developed/Supported judgement in context L3 6 marks

Developed/Reasonable evaluative comments in context L3 5 marks

Developed/Supported judgement without context L2 4 marks

Developed/Reasonable evaluative comments without context L2 3 marks

Limited supported judgement L1 2 marks

An attempt to balance the arguments/Weak attempt at evaluative comments L1 1 mark

A judgement/conclusion is given as to whether supply chain management is the most important operations factor to the
success of an internet retailer
These judgements/conclusions may be made at any point in an essay not just in a concluding section.

 A judgement about SCM being very relevant to an online retailer – due to customers nowadays demanding and
expecting quick deliveries and low prices.
 It can be concluded that Supply Chain Management (SCM) is essential in the modern online retail environment due
strong competition.
 It might be concluded that SCM can bring cost savings – and that ultimately, survival is about being profitable.
 A judgement as to what is considered being successful – it might differ depending on the stakeholder
 A judgement as to how important the customer experience is when ordering goods – are customers really bothered
about prompt delivery.
 It might be concluded that other factors are more important such as – recruit the right staff in the first place, successful
marketing, reliable and easy to use website/apps, being able to react quickly to changes in the market/fashions.

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9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Question Answer Marks

6(b)  It might be concluded that it depends on the business objectives – do they value sustainability more – is it moral to
drive supplier prices down as low as they can get them.
 It might be concluded that business success can be subject to external conditions. The worldwide pandemic has had a
major impact on the online retail industry – especially when high street stores had to close.
 A conclusion that nowadays most businesses have some form of SCM – but that it only really benefits larger
businesses.
 SCM is seen as an investment by businesses – can lead to huge cost savings – enabling the business to out compete
other competitors through low prices.
 A judgement about SCM having a cost to the business - it affects the bottom line i.e. profits in the short term

Accept all valid responses.

© Cambridge University Press & Assessment 2024 Page 32 of 34


9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Mark Grids for Section B

Used for Q5(a) and Q6(a)

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

0 0 marks 0 marks 0 marks


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

© Cambridge University Press & Assessment 2024 Page 33 of 34


9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2024
PUBLISHED
Mark Grids for Section B

Used for Q5(b) and Q6(b)

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

0 0 marks 0 marks 0 marks 0 marks


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

© Cambridge University Press & Assessment 2024 Page 34 of 34


Cambridge International AS & A Level

BUSINESS 9609/12
Paper 1 Business Concepts 1 February/March 2023

1 hour 15 minutes

You must answer on the enclosed answer booklet.


* 2 3 8 6 9 4 8 0 4 3 *

You will need: Answer booklet (enclosed)

INSTRUCTIONS
● Answer five questions in total:
Section A: answer all questions.
Section B: answer one question.
● 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 40.
● 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 (CE) 315426/1
© UCLES 2023 [Turn over
2

Section A

Answer all questions.

1 (a) Define the term opportunity cost. [2]

(b) Explain one quality an entrepreneur needs for business success. [3]

2 (a) Define the term product life cycle. [2]

(b) Explain one way a business could extend the life of a product. [3]

3 (a) Define the term induction training. [2]

(b) Explain one benefit to a business of training its employees. [3]

4 Analyse one way a business might raise productivity levels. [5]

Section B

Answer one question only.

EITHER

5 (a) Analyse two ways in which accurate cost information can be used to improve business
performance. [8]

(b) Evaluate whether cash flow forecasting is the most important activity for a new restaurant to
succeed. [12]

OR

6 (a) Analyse two reasons why changing a business’ objectives might affect its shareholders. [8]

(b) ‘The main reason why many niche cake manufacturing businesses fail is that they grow too
quickly.’

Evaluate this view. [12]

© UCLES 2023 9609/12/F/M/23


3

BLANK PAGE

© UCLES 2023 9609/12/F/M/23


4

BLANK PAGE

Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every
reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
publisher will be pleased to make amends at the earliest possible opportunity.

To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge
Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download
at www.cambridgeinternational.org after the live examination series.

Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge
Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge.

© UCLES 2023 9609/12/F/M/23


Cambridge International AS & A Level

BUSINESS 9609/12
Paper 1 Short Answer/Essay October/November 2023
MARK SCHEME
Maximum Mark: 40

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 October/November 2023 series for most
Cambridge IGCSE, Cambridge International A and AS Level components, and some Cambridge O Level
components.

This document consists of 24 printed pages.

© UCLES 2023 [Turn over


9609/12 Cambridge International AS & A Level – Mark Scheme October/November
PUBLISHED 2023

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.

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.

© UCLES 2023 Page 2 of 24


9609/12 Cambridge International AS & A Level – Mark Scheme October/November
PUBLISHED 2023

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).

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.

© UCLES 2023 Page 3 of 24


9609/12 Cambridge International AS & A Level – Mark Scheme October/November
PUBLISHED 2023

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.

© UCLES 2023 Page 4 of 24


9609/12 Cambridge International AS & A Level – Mark Scheme October/November
PUBLISHED 2023

9609 Business Studies – Paper 1 Annotations

Annotation Description Use

Tick Indicates a point which is relevant and rewardable.

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

Knowledge Indicates knowledge and understanding of the concepts and issues


relating to the question.

Application Indicates where application is made to an appropriate business


context.

Analysis Indicates where the answer has demonstrated analysis – questions


4, 5a, 5b, 6a and 6b.

Evaluation Indicates where the answer has demonstrated evaluation –


(Section B Part (b) questions only).

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

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

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

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

Repetition Indicates where content has been repeated.

Level 1 Indicates a Level 1 point is made.

Level 2 Indicates a Level 2 point is made.

Level 3 Indicates a Level 3 point is made.

Off Page Used to view PE comments on Practice Scripts only –


Comment displayed at the bottom of the screen when clicking the comments
button/toggle.

© UCLES 2023 Page 5 of 24


9609/12 Cambridge International AS & A Level – Mark Scheme October/November
PUBLISHED 2023

Guidance on using levels-based mark schemes

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.

© UCLES 2023 Page 6 of 24


9609/12 Cambridge International AS & A Level – Mark Scheme October/November
PUBLISHED 2023

Mark Grids for Section A

Used for Q1(a), Q2(a) and Q3(a)

Two marks in total can be awarded for these questions.

AO1 Knowledge and understanding Marks

Knowledge of the term that demonstrates a clear 2


understanding of the term.

Knowledge of the term that demonstrates a partial 1


understanding of the term.

No creditable response. 0

Used for Q1(b), Q2(b) and Q3(b)

Three marks in total can be awarded for these questions.

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 Limited application of one relevant point to a
answer the question. business context.

0 marks 0 marks
No creditable response. No creditable response.

© UCLES 2023 Page 7 of 24


9609/12 Cambridge International AS & A Level – Mark Scheme October/November
PUBLISHED 2023

Question Answer Marks

1(a) Define the term job description. 2

Indicative content

Responses may include:

AO1 Knowledge and understanding


Clear understanding (2 marks)
• A statement/document outlining/defining the job profile – key tasks,
responsibilities, duties of a job, pay, hours of work

Partial understanding (1 mark)


• General statement about the work involved in a job

Accept all valid responses.

© UCLES 2023 Page 8 of 24


9609/12 Cambridge International AS & A Level – Mark Scheme October/November
PUBLISHED 2023

Question Answer Marks

1(b) Explain one advantage to an employer of using a person specification 3

Indicative content

Responses may include:

AO1 Knowledge and understanding


A person specification is a profile of an ideal candidate that a business wants
to interview for a job.
It sets out the exact skills and knowledge needed to perform the job such as
education, qualifications. experience, skills, training

Advantages to an employer include:


• Makes the interview process efficient – recruits applicants that meet the
requirements of the job
• Prevents unsuitable applicants applying for a job
• Defines the personable qualities/qualifications required of an applicant
• Ensures equality of treatment of applicants
• Presents important information to applicants
• Used to assess applicants and select for a specific job
• Assists shortlisting of applicants

Advantages to an employer of a person specification may include:


• It streamlines the interview process – job seekers are matched to the
same job profile and matched against certain requirements
• It clarifies the two types of personal qualifications important to the
employer – essential and desirable
• Helps to remove bias and discrimination – supports equality of treatment
• Saves time in the recruitment process – gives clear information of
candidates’ qualifications, skills, experience to perform the job
• Allows employer to profile the ideal person to fill the job – and use it to
assess candidates
• Provides a basis for shortlisting applicants – reduces the number of
applicants to be interviewed to manageable proportions.

Accept all valid responses.

© UCLES 2023 Page 9 of 24


9609/12 Cambridge International AS & A Level – Mark Scheme October/November
PUBLISHED 2023

Question Answer Marks

2(a) Define the term business enterprise 2

Indicative content

Responses may include:

AO1 Knowledge and understanding


Business enterprise is often defined as someone who spots a business
opportunity and sets up a business – an entrepreneur
Business enterprise is also defined as any business activity that makes/sells
products that make profits and contributes to economic development – job
creation, GNP in a city or country – both interpretations are acceptable

Clear understanding (2 marks)


• Risk taking ability that brings together all factors of production to set up a
business
• Entrepreneur activity that sets up businesses to make profits/
products/sells to customers
• Any organisation that sells products to satisfy customers
• The skill and ability to start up/manage a business
• A business with the aim of making profit rather than meeting social
objectives
Partial understanding (1 mark)
• One of the factors of production
• A business that makes profits
• A partnership or limited company/an organisation
• An entrepreneur

Accept all valid responses

© UCLES 2023 Page 10 of 24


9609/12 Cambridge International AS & A Level – Mark Scheme October/November
PUBLISHED 2023

Question Answer Marks

2(b) Explain one reason why a business might fail 3

Indicative content

Responses may include:

AO1 Knowledge and understanding


Business failure is when a business ceases to operate
• Lack of cash
• Insufficient working capital
• Poor business model
• Poor managers
• Competition
• Too few customers
• Poor marketing
• Business inflexible.

AO2 Application
Reasons for business failure may include:
• Lack of financial control – cash flow forecasts are inadequate or not used
– unable to negotiate cash shortages
• Poor cash flow management – insufficient working capital to survive
• Business model is defective – demand for niche product falls – no
alternative product
• Management and leadership inadequate – lack key skills and experience
to make appropriate decisions
• Competition too strong – business fails to respond to aggressive
competition -offer on price or quality is inferior to competition
• Failure to attract and retain customers – may be dependent on a few big
customers, or a limited niche market segment
• Marketing is weak – poor market research at outset – marketing is under
resourced
• Economic, legal, social, market changes – business unable to respond –
lacks agility and flexibility

Accept all valid responses.

© UCLES 2023 Page 11 of 24


9609/12 Cambridge International AS & A Level – Mark Scheme October/November
PUBLISHED 2023

Question Answer Marks

3(a) Define the term bankruptcy 2

Indicative content

Responses may include:

AO1 Knowledge and understanding


Clear understanding (2 marks)
• A legal procedure when a business is unable to repay outstanding
debts/loans

Partial understanding (1 mark)


• A business runs out of cash/is insolvent / no financial capital to operate
/assets used to pay creditors

Accept all valid responses.

© UCLES 2023 Page 12 of 24


9609/12 Cambridge International AS & A Level – Mark Scheme October/November
PUBLISHED 2023

Question Answer Marks

3(b) Explain one advantage of using retained earnings as a source of finance 3

Indicative content

Responses may include:

AO1 Knowledge and understanding


Retained earnings are the part of business profits not distributed to
shareholders as dividends but instead reserved for re-investment back into
the business.
• Inexpensive way of raising finance
• Not repaid
• No interest
• Internal source of finance
• Flexible way of raising finance
• Deal with unpredictable situations
• Not using the owner’s capital
• No loss of control
• Available/sufficient finance
• Instant increase in liquidity

AO2 Application
Advantages of using retained earnings as a source of finance may include:
• Retained earnings may be inexpensive – compared to other sources of
finance (though not free) there is an opportunity cost for shareholders
• Retained earnings provide flexibility – business has complete control as
to how they are used
• They do not dilute the ownership of the business – unlike share issues or
venture capital (in shares or loans)
• Readily available – when other sources of finance may not be available –
banks and investors may be unwilling
• Increases liquidity – provides liquid assets – funds for emergencies –
gives stability to a business
• Can be used to stimulate growth

Accept all valid responses.

© UCLES 2023 Page 13 of 24


9609/12 Cambridge International AS & A Level – Mark Scheme October/November
PUBLISHED 2023

Question Answer Marks

4 Analyse one way a business might improve the efficiency of its 5


operations.

Indicative content

Responses may include:

AO1 Knowledge and understanding


Efficiency is the ratio between an output gained from an input during business
operations – seeking to produce a product with minimum resources – ways to
improve efficiency of operations may include:
• Improve production process
• More capital investment
• Motivation of employees
• Waste reduction measures
• Improve productivity of employees
• Cheaper supplies
• More efficient inventory
• More efficient HRM/skilled managers
• Better training of employees
• Workforce planning

AO2 Application
• Business aims to have cost-efficient operations – reducing waste while
retaining quality and service
• Business can improve efficiency – with more cost – efficient operations, –
use new and better equipment, waste reduction, use more machines,
training for workers, worker involvement, review inventory cost.

AO3 Analysis
• Invest in new or improve machines/technology
• Cost efficient operations—reduce costs while retaining quality and service
levels
• Invest in new and improved machines – improve productivity using
robotic process operations
• Focus on waste – waste reduction methods, audit waste costs, measure
the impact of waste on the business
• Become a more capital – intensive business – more consistent production
– save on employee costs
• Invest in training for operational employees – increase skills, productivity
and employee confidence
• Involve workers in the business – consultation, worker directors,
empowerment, more engagement, ownership
• Examine inventory costs – change system to JIT – fit for purpose

Accept all valid responses.

© UCLES 2023 Page 14 of 24


9609/12 Cambridge International AS & A Level – Mark Scheme October/November
PUBLISHED 2023

Question Answer Marks

5(a) Analyse two methods that a business could use to help employees 8
satisfy their self-actualisation needs, as defined by Maslow

Indicative content

Responses may include:

AO1 Knowledge and understanding


Maslow’s hierarchy of needs is a model of human motivation.
The final fifth stage of the Maslow hierarchy is self-actualisation needs.
If these needs are met at work the employee can realise full potential – a
higher order need (other 4 are physical, safety, belonging, and esteem needs)
Self-actualisation needs are related to an employee need for self-growth,
creativity and advancement and looks to a business to satisfy these needs
• Businesses can create appropriate working environments for self-
actualisation
• New job roles and responsibilities
• Involve employees in decision-making

AO2 Application
Business can employ methods to support employees to achieve Maslow
higher order needs including:
• Opportunities to be an intrapreneur – Method to meet creative needs
• Training/self-development – methods to meet career progression needs
• Job enrichment/enlargement – a method to meet responsibility needs
• More management responsibilities – method to meet leadership needs
• Promotion opportunities – method to meet accomplishment needs

AO3 Analysis
• Business can provide creative work – creative work projects that allow
innovation and will inspire employees
• Business can provide challenging work – that demonstrates the skills of
employees and stretches them – and provides progression/promotion
opportunities
• Business can increase responsibility of employees – provide project
leadership opportunities
• Business can place employees in positions of leadership – responsibility
and accountability that gives them increased self- worth and allows them
to operate at a senior management level
• Business can create tasks/projects that allow employees to accomplish
significant tasks – lots of delegation and minimal interference
• Business can ensure employees benefit from satisfying the other 4
Maslow needs and create a platform for self-actualisation with
opportunities to work in teams.

Accept all valid responses.

© UCLES 2023 Page 15 of 24


9609/12 Cambridge International AS & A Level – Mark Scheme October/November
PUBLISHED 2023

Question Answer Marks

5(b) Evaluate whether an ability to motivate others is the most important role 12
of a hotel manager

Indicative content

Responses may include:

AO1 Knowledge and understanding


• Motivation is the process that initiates, guides and maintains goal-
orientated behaviours – the driving force behind human actions
• Manager – many definitions, – setting objectives, organising resources,
motivating staff – Mintzberg – interpersonal, informational, decisional
• Manager – many roles – manage resources – human and non-human,
manage assets, manage the functional areas in the business, manage
performance of the business, maintain/increase sales/revenue,
maintain/improve profits and return on capital employed, improve
performance relative to competitors

AO2 Application
• Hotel managers should motivate employees – waiters, cleaners,
reception staff
• Aware of key objectives and how they might be achieved – maximise
room occupancy – in all seasons
• Hotel managers should ensure a quality experience for customers –
room, food, surroundings, fast internet
• Be aware of changing customer expectations – clean rooms
• Hotel Managers should ensure – appropriate levels of revenue/profits
• Hotel managers should recruit and manage staff – who are committed to
organisational objectives
• Hotel managers should plan for the future – long term thinking
• Hotel managers should ensure effective financial management –
appropriate cost control measures used

AO3 Analysis
Numerous roles of managers identified – Fayol to Mintzberg
Managers perform a range of tasks/roles to ensure business survival and
success
• Ensure plans and strategies in place to meet all organisation goals
• Staff motivation – a labour intensive business-quality of service and
business reputation depends on quality of staff -skills and enthusiasm –
create positive work environments use motivation theories such as
Maslow, Herzberg
• Hotel occupancy – needs to be maximised – market, promote, and sell
the hotel – beat the competition
• Customer satisfaction – provide a rich customer experience-develop
superb facilities – USP for quality of food, bedrooms
• Profit – ensure viability of the business now and in the future – re-invest
to maintain distinctive facilities and boost profits
• Recruit and manage staff – workforce planning to ensure appropriate
numbers and skills are available – incentivise staff with monetary and
non- monetary rewards
• Establish effective financial discipline – use budgets, set financial targets,
regular audit of expenditure and costs

© UCLES 2023 Page 16 of 24


9609/12 Cambridge International AS & A Level – Mark Scheme October/November
PUBLISHED 2023

Question Answer Marks

5(b) A judgement/decision as to whether the ability to motivate others is the most


important ability for the role of an hotel manager
Such judgements/decisions may be made at any point in the essay, not just in
a concluding section
• Judgement is made as to the importance of staff motivation in creating
the appropriate context for successfully carrying out the many diverse
roles of a hotel manager and motivation is judged to be a critical role
• Hotels are labour intensive organisations and customer service is
important – so motivated employees are very important
• An evaluative question is presented – are other roles/functions/activities
as important as motivation, or even more important?
• To what extent does it depend on individual circumstances of business
and manager – the skills of a manager and the market position of the
hotel
• Do hotel managers need to ‘control’ just as much as motivate to ensure
high standards?
• Is financial control just as important, or more important, than motivation?
• To what extent is motivation under the control of an hotel manager? Might
pay levels and promotion be centrally controlled in a hotel chain?

AO4 Evaluation

Developed evaluation Developed / Supported 6 marks


in context: judgement in context

Developed evaluation Developed/Reasonable 5 marks


in context: evaluative comments in
context

Developed evaluation Developed / Supported 4 marks


not in context: judgement without
context

Developed evaluation Developed/Reasonable 3 marks


not in context: evaluative comments
without context

Limited evaluation not Limited supported 2 marks


in context: judgement

Limited evaluation not An attempt to balance 1 mark


in context: the arguments / Weak
attempt at evaluative
comments

Accept all valid responses.

© UCLES 2023 Page 17 of 24


9609/12 Cambridge International AS & A Level – Mark Scheme October/November
PUBLISHED 2023

Question Answer Marks

6(a) Analyse two reasons why there should be a close link between the 8
marketing objectives of a business and its corporate objectives

Indicative content

Responses may include:

AO1 Knowledge and understanding


Marketing objectives are objectives set by a business and its marketing
department to engage in marketing activities that will support corporate
objectives.
Specific marketing activities include increasing product awareness, strengthen
customer relationships, and strengthen the business brand – activities that
would normally be supportive of corporate goals
• To stop any conflict that might arise between corporate and marketing
objectives
• Ensure that there are appropriate strategies and tactics for the business
• Will ensure that corporate objectives are more likely to be achieved
• Marketing objectives and activities can make a significant contribution
only if they are closely linked to the corporate objectives.
• Harder to achieve corporate objectives without marketing objectives.
• Would waste resources

AO2 Application
• Conflict might arise when the marketing department decides to follow its
own objectives, e.g., lower prices when dynamic pricing is needed
• Corporate objectives require all departments, particularly marketing
department, to pursue supportive objectives. To increase market share
the marketing department could increase sales through a social media
advertising campaign
• If marketing objective is domestic growth and corporate objective is
expanding into overseas markets
• Increased spending on irrelevant/unnecessary marketing activities –
spending money on market research when corporate objective is
minimising costs

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PUBLISHED 2023

Question Answer Marks

6(a) AO3 Analysis


Reasons for close links between marketing and corporate objectives
• If marketing plans for new products – involves research and development
expenditure – must have approval of corporate management and support
the corporate objective on the product portfolio
• If marketing decides that market share of some products should be
increased – using product life cycle approach – should not conflict with
stated corporate intent as stated in the latest corporate plan
• A focus on the existing brand by marketing – should align with latest
mission statement of the business
• Targeting new overseas customers – could conflict with corporate goals
to expand the business which may seek to concentrate on the domestic
market
• Marketing proposals to strengthen/change the customer relationship –
may conflict with corporate pans to explore a new customer relationship
model
• Marketing initiatives to increase sales and revenue – with more
aggressive advertising and promotion may conflict with a new corporate
proposal to strengthen the existing corporate social responsibility
approach
• More use of online marketing activities may not be in the objectives and
plans of corporate management
• These marketing objectives need to support the corporate
objectives/priorities – marketing isa functional division of the total
business
• Corporate objectives set the context and discipline for marketing activities
– there should be close links and effective communication
• The impact on a business of an independent marketing department –
business could drift and become dysfunctional
• Corporate objectives focus on the desired performance and results of the
total business and marketing is just one component part of the business –
this implies close links and corporate responsibility and accountability

Accept all valid responses.

© UCLES 2023 Page 19 of 24


9609/12 Cambridge International AS & A Level – Mark Scheme October/November
PUBLISHED 2023

Question Answer Marks

6(b) ‘This new airline will only succeed if it offers the lowest prices in the 12
market`. Evaluate this view.

Indicative content

Responses may include:

AO1 Knowledge and understanding


• New business`s face many challenges as they aim to survive and reach
the point of profitability – the need for an effective cash flow plan – attract
customers and build the brand.
• New airlines may face similar challenges but also additional challenges
relating to external factors such as lockdowns in many countries during
the pandemic and the pressures to reduce carbon emissions from an
increasingly powerful green lobby, and fierce competition in a reducing
market – it is in a high-risk industry
• Success can be measured in different ways and at different times but is
usually concerned with such issues as profitability, and sustainability of
the business model

AO2 Application
The key factors affecting the success of a new airline include the following:
• Business passengers or tourists
• Flight/route options
• First class/second class
• Meals provided
• Flight attendant service
• Tickets for the airline

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9609/12 Cambridge International AS & A Level – Mark Scheme October/November
PUBLISHED 2023

Question Answer Marks

6(b) AO3 Analysis


• The launch time of a new airline is important – the airline industry is a
very competitive one -market research should inform -is there ever a
good time to enter a very depressed industry
• A new airline must do a lot of things well to survive and succeed – a
competitive strength assessment is vital
• An appropriate business model is chosen – options include low-cost and
premium service – a hybrid model might offer possibilities
• Price traditionally a critical success factor – new airline will see fare as a
key way to attract customers – may consider low pricing strategy –
penetration pricing but many competitors doing the same will limit the
effectiveness of this approach
• Compete on level and type of service – informality, fun atmosphere could
be adopted as a differentiating approach to attract customers
• Dynamic pricing and the pricing of on-board ancillary services – charges
for baggage, food, premium seat selection, extra leg room – on board
retailing a significant revenue stream may be used to create financial
stability
• A new airline will seek to effectively manage its fleet of planes—efficiency
of turn around will be a priority as will be policies to achieve low
maintenance costs – may lease planes rather than purchase
• Effective financial management – new airline will need to focus on
appropriate control methods to ensure liquidity and ability to continue to
invest, for the future – will need to convince investors that the airline has
a long- term future – performance in the first year of operations will need
to be convincing
• Employee management – a new airline may seek to compete on the
professionalism and distinctive relationship of onboard staff to customers
– effective training programmes may be used to generate a team/family
atmosphere environment

© UCLES 2023 Page 21 of 24


9609/12 Cambridge International AS & A Level – Mark Scheme October/November
PUBLISHED 2023

Question Answer Marks

6(b) AO4 Evaluation

Developed evaluation Developed / Supported 6 marks


in context: judgement in context

Developed evaluation Developed/Reasonable 5 marks


in context: evaluative comments in
context

Developed evaluation Developed / Supported 4 marks


not in context: judgement without
context

Developed evaluation Developed/Reasonable 3 marks


not in context: evaluative comments
without context

Limited evaluation not Limited supported 2 marks


in context: judgement

Limited evaluation not An attempt to balance 1 mark


in context: the arguments / Weak
attempt at evaluative
comments

Judgement/conclusion as to the significant of charging low prices to a new


airline
Such judgements/conclusions may be made at any point in the essay, not just
in a concluding section
• Judgement is presented that argues that price has always been the
deciding factor affecting the success of airlines and it remains so for a
new airline.
• A judgement is made that the revenue from on-board revenue streams,
such as charges for food, luggage, and differentiated seating, is as
important or possibly more important for profitability and success than the
price set for the airline fare
• Given the high capital outlay for new planes will low prices be possible in
order to pay back and make a profit?
• Is marketing strategy – use of internet – as important as the actual
fare/price charged?
• How important are the available routes and journey schedules?
• Could external factors such as world-wide economic recession determine
the fate of a new airline irrespective of any other business decisions

Accept all valid responses.

© UCLES 2023 Page 22 of 24


9609/12 Cambridge International AS & A Level – Mark Scheme October/November
PUBLISHED 2023

Mark Grids for Section B

Used for Q5(a) and Q6(a)

AO1 Knowledge and


AO2 Application AO3 Analysis
Level understanding
2 marks 4 marks
2 marks

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

1–2 marks 1–2 marks 1–2 marks


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

0 marks 0 marks 0 marks


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

© UCLES 2023 Page 23 of 24


9609/12 Cambridge International AS & A Level – Mark Scheme October/November
PUBLISHED 2023

Used for Q5(b) and Q6(b)

AO1 Knowledge
AO2
and AO3 Analysis AO4 Evaluation
Level Application
understanding 2 marks 6 marks
2 marks
2 marks

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

2 marks 2 marks 2 marks 3–4 marks


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

1 mark 1 mark 1 mark 1–2 marks


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

0 marks 0 marks 0 marks 0 marks


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

© UCLES 2023 Page 24 of 24


Cambridge International AS & A Level

BUSINESS 9609/11
Paper 1 Business Concepts 1 May/June 2023

1 hour 15 minutes

You must answer on the enclosed answer booklet.


* 1 8 1 5 7 1 8 6 7 1 *

You will need: Answer booklet (enclosed)

INSTRUCTIONS
● Answer five questions in total:
Section A: answer all questions.
Section B: answer one question.
● 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 40.
● 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 (CJ) 316202
© UCLES 2023 [Turn over
2

Section A

Answer all questions.

1 (a) Define the term fixed cost. [2]

(b) Explain one way that a business may reduce its variable costs. [3]

2 (a) Define the term product differentiation. [2]

(b) Explain one reason why product development may be important to a business. [3]

3 (a) Define the term commission. [2]

(b) Explain one type of training that a business may use. [3]

4 Analyse one responsibility to a business of an employee as a stakeholder. [5]

Section B

Answer one question only.

EITHER

5 (a) Analyse two benefits to a business of holding high levels of inventory. [8]

(b) Evaluate whether supply chain management is the most important operational activity to the
success of a manufacturer of electric cars. [12]

OR

6 (a) Analyse two reasons why a business should set SMART objectives. [8]

(b) ‘Ethics should always influence the human resource management (HRM) activities of a
mining business.’

Evaluate this view. [12]

© UCLES 2023 9609/11/M/J/23


3

BLANK PAGE

© UCLES 2023 9609/11/M/J/23


4

BLANK PAGE

Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every
reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
publisher will be pleased to make amends at the earliest possible opportunity.

To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge
Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download
at www.cambridgeinternational.org after the live examination series.

Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge
Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge.

© UCLES 2023 9609/11/M/J/23


Cambridge International AS & A Level

BUSINESS 9609/11
Paper 1 Business Concepts 1 May/June 2023
MARK SCHEME
Maximum Mark: 40

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 32 printed pages.

© UCLES 2023 [Turn over


9609/11 Cambridge International AS & A Level – Mark Scheme May/June 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.

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.

© UCLES 2023 Page 2 of 32


9609/11 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
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.

© UCLES 2023 Page 3 of 32


9609/11 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
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).

© UCLES 2023 Page 4 of 32


9609/11 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
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 mark schemes

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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Annotations and their Use

Annotation Use

 As an indication of relevant and rewardable content. Better to put these in the body of the answer.

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

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

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

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

APP Indicates that there is specific application to the context of the question.

AN Indicates where the answer has demonstrated analysis.

EVAL Indicates where the answer has demonstrated evaluation.

REP This indicates where content has been repeated.

SEEN Indicates that content has been recognised but not rewarded.

L1, L2, L3 Indicates where the answer reaches the required standard.

1, 2, 3, 4, 5, 6 Indicates the number of K, APP, AN and EVAL marks awarded.

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Question Answer Marks

1(a) Define the term fixed cost. 2

AO1 Knowledge and understanding Marks

Knowledge of the term that demonstrates a clear understanding of the term. 2

Knowledge of the term that demonstrates a partial understanding of the term. 1

No creditable response. 0

Indicative content

Responses may include:

AO1 Knowledge and understanding


 Fixed costs do not vary with output
 Fixed costs do not change when a business alters its level of output of goods or services/over a period of time. Clear
understanding (2 marks) 2
 Costs that do not change. Partial understanding (1 mark) 1

Accept all valid responses.

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Question Answer Marks

1(b) Explain one way that a business may reduce its variable costs. 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

Responses may include:

AO1 Knowledge and understanding


 Reduce expenditure
 Gain discounts
 Improve efficiency
 Reduce wastage

 One way to reduce variable costs is to secure cheaper raw materials. (1 mark)  1AO2

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Question Answer Marks

1(b) Application
 Reduce expenditure on gas, electricity, water – find new utilities provider.
 Reduce expenditure on fuel- alter logistics arrangements.
 Buy cheaper raw materials, possibly of lesser quality.
 Reduce employees’ wages or number of employees if related to the unit cost of each item.
 Buy in bulk to gain discounts.

 Developed application of one way to reduce variable costs – a business could become more efficient by producing the
same output with fewer employees (2 marks). 2
 Limited application – a way to reduce variable costs would be to purchase raw materials in large bulk order amounts.
(1 mark). 1

Accept all valid responses.

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Question Answer Marks

2(a) Define the term product differentiation. 2

AO1 Knowledge and understanding

Knowledge of the term that demonstrates a clear understanding of the term. 2

Knowledge of the term that demonstrates a partial understanding of the term. 1

No creditable response. 0

Indicative content

Responses may include:

AO1 Knowledge and understanding


 Product differentiation is a marketing strategy.
 Designed to distinguish a business’ products or services from the competition.
 Identifies and communicates the unique qualities of a product or business.
 Highlights the distinct differences between a product or business and its competitors.

 Product differentiation is the actions of a business to make its product distinctive and different from the competition.
(Clear understanding 2 marks.) 2
 Product differentiation is making the product different. (Partial understanding – 1 mark  1)

Accept all valid responses.

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Question Answer Marks

2(b) Explain one reason why product development may be important to a business. 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

Responses may include:

AO1 Knowledge and understanding


 Extend product life cycle
 Adapt to market changes
 Gain new sales or keep existing customers
 Remain competitive
 Increase or maintain market share
 Adjust to changing regulations/technology

 One reason why product development might be important to a business would be to refresh its product portfolio (its
product offer to customers). (1 mark )

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Question Answer Marks

2(b) AO2 Application


 Keeping customer loyalty with minor development of existing products is cheaper than developing a completely new
product.
 Customers’ tastes and fashions change – business adjusts its product accordingly, – customers want less sugar/salt in
food.
 Competitors will carry out product development, so all businesses react to the actions of competitors to remain
competitive.
 New/more advanced products can attract customers from competitors so increase market share.
 New markets can be targeted with a new product – selling to other countries or to a different market segment.
 Market share may increase if a new product is added to the product portfolio or adapted product can be sold to new
markets.
 Reflect developments in technology – telecommunications, software to keep up-to-date with customer expectations.
 Regulations change – car manufacturers develop electric cars when diesel and petrol are no longer allowed.

 Developed application – product development may be important when a business is aware that customer tastes and
fashions are changing – buying more sugar-free drinks. (2 marks  2)
 Limited application – product development may be important when competitors produce more attractive products. (1
mark  1)

Accept all valid responses.

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Question Answer Marks

3 (a) Define the term commission. 2

AO1 Knowledge and understanding

Knowledge of the term that demonstrates a clear understanding of the term. 2

Knowledge of the term that demonstrates a partial understanding of the term. 1

No creditable response. 0

Indicative content

Responses may include:

AO1 Knowledge and understanding


 A financial reward/payment made to employees based on the value/volume of sales achieved.
 Employees can be paid a percentage of the value of any products they sell.
 It can form all or (more often) part of a pay package.
 It is a form of bonus.

 A payment to an employee according to the amount/value of sales achieved. (Clear understanding – 2 marks  2)
 Part of a pay package or incentive payment. (Partial understanding – 1 mark  1)
Accept an alternative interpretation of the question:
 A special product order made to a business/trader by a customer/Accepting an order from a customer to produce a
special product. (Clear understanding)
 An order given or received for a product. (Partial understanding)

Accept all valid responses.

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Question Answer Marks

3(b) Explain one type of training that a business may use. 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

Responses may include:

AO1 Knowledge and understanding


Types of training could be:
 Induction training
 On-the-job training
 Off-the-job training
 On-line training
 Video training
 Shadowing/mentoring training.

 A business could use induction training to make new employees aware of its performance appraisal systems. (1 mark
)

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Question Answer Marks

3(b) AO2 Application


 Induction training – given to new recruits to give information about working within the business- introduce employees
to people they will be working with, internal organisation structure, layout of premises, health and safety issues. Allows
employees to make an effective start to their employment.
 On-the-job training – instruction / demonstration of work processes within the business. Employees watch or work
closely with experienced colleagues to learn how to carry out tasks and job roles correctly.
 Off-the-job training – a course of instruction carried out away from the workplace – at a specialist training centre
owned by the business or an external supplier. Offers new ideas, knowledge and skills that can be introduced to the
business.
 Online training could be accepted as a method of delivering training, especially induction and off-the-job. Is carried out
using computer software at a time and place to suit the employee.

 Developed application – A business could use on-the-job training to provide work-related education using its own HR
training staff to increase skills. (2 marks  2)
 Limited application – a business may use off-the-job training to increase work-related skills at a university. (1 mark
 1)

Accept all valid responses.

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Question Answer Marks

4 Analyse one responsibility to a business of an employee as a stakeholder. 5

Level AO1 Knowledge and AO2 Application AO3 Analysis


understanding 2 marks 2 marks
1 mark

2 2 marks 2 marks
Developed application of one Developed analysis that identifies
relevant point to a business connections between causes, impacts and/or
context. consequences of one relevant point.

1 1 mark 1 mark 1 mark


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

0 0 marks 0 marks 0 marks


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

Indicative content

Responses may include:

AO1 Knowledge and understanding


 To work effectively / productively.
 Meet the business’ clear expectations.
 To fulfil terms of contract of employment.
 To follow business policy and regulations.
 Not damage the business reputation.
 Not give/sell employer’s trade secrets to competitors.
 Being honest.

 An employee has the responsibility to perform according to the terms of contract of the employment. (1 mark  1)

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Question Answer Marks

4 AO2 Application
 Examples may be given in the context of different employees – managers / shopfloor workers.
 Effective and productive employees will perform the duties of their position to the best of their ability.
 Come to work when expected, manage their time well and be a positive part of the team.
 Following company policies and protocols leads to fewer accidents and legal issues.
 Consult managers with any questions or problems to get the job right first time and avoid costly waste.
 Accept responsibility for their own mistakes to prevent a blame culture affecting working relations.
 Work for the good of the business to help it maintain its position in the market.

 Developed application – an employee has a responsibility to consistently follow the policies and procedures of a
business and maintain the reputation of that business. (2 marks  2)
 Limited application- an employee has a responsibility to always be punctual when attending work. (1 mark  1)

AO3 Analysis
 Ensures consistency, reduces risk, achieves high standards therefore helps a business achieve its objectives.
 Improves efficiency and performance therefore the business will have effective use of resources.
 Responsible employees give a business the ability to compete well and improve market share.
 Reduces the risk of mistakes, waste, accidents, legal issues – all of which will prevent the success of the business.

 Developed analysis – if an employee remains loyal to a business and does not share internal production secrets with
competitors the business will likely remain very competitive and continue to achieve high levels of profitability. (2
marks  2)
 Limited analysis – when an employee continually achieves high standards of work performance the business will
prosper. (1 mark  1)

Accept all valid responses.

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Question Answer Marks

5(a) Analyse two benefits to a business of holding high levels of inventory. 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.
 Developed analysis that identifies connections
between causes, impacts and/or consequences of
one point.

1 1–2 marks 1–2 marks 1–2 marks


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

0 0 marks 0 marks 0 marks


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

2 marks for
2 marks for
4 marks for

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Question Answer Marks

5(a) Indicative content

Responses may include:

AO1 Knowledge and understanding


 Will meet customer needs / demand
 Will not run out of production materials
 Can stockpile seasonal products
 Allows for bulk buying discounts
 Less need to reorder

 One benefit – high levels of inventory will allow a business to meet unexpected increases in demand for its products.
(1 mark  1)
 One benefit – high levels of inventory will allow a business to benefit from achieving discounts for bulk buy orders. (1
mark  1)

AO2 Application
 Completed chairs and tables ready for sale when customers want them.
 Car components such as rivets, bolts, fans, tyres, engines needed for production of all car types.
 Christmas decorations made throughout the year but sold in large quantities in a short time window.
 Could buy cloth more cheaply in bulk and store it for when it is needed.
 High levels of inventory will allow a business to always have raw materials available to meet customer demands for the
finished article . (1 mark  1)
 High levels of inventory will allow a business to benefit from purchasing low priced raw materials . (1 mark  1)

AO3 Analysis
 The business can increase production and sales if the demand of customers increases unexpectedly, or a special
order is received. This avoids letting customers down and losing customer loyalty. It also takes advantage of the
opportunity to make more sales.
 Production can run smoothly even if supplies are delivered late. Production can continue using the buffer stock of raw
materials/components or work-in-progress. This means products will still be produced for sale or to keep as inventory
of finished products.

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Question Answer Marks

5(a)  If production machinery breaks down the inventory of finished products can be sold until production can restart, so
customers are not aware of any issues and revenue is not affected.
 Businesses can stockpile completed goods to meet anticipated increases in demand – seasonal products, such as
toys at festival times. It may not be possible to produce the required amount if it was not completed and stored in
advance.
 Buying raw materials and components in large quantities to keep inventory levels high may result in substantial
discounts which reduces unit costs and could lead to higher profits.

There are 4 marks for Analysis in this question. Possible 2 analysis marks for an identified and applied first
benefit and 2 marks for 2 possible analysis marks for an identified and applied second benefit. The examples
below indicate how the 2 analysis marks should be allocated to each benefit.

Benefit 1 – assuming that this benefit is ‘it will allow a business to meet unexpected increases in demand for its products
.’ The application might be ‘The business will always have raw materials available to meet customer demands for the
finished article’ .
Then the 2 analysis marks should be allocated in the following way:
If the analysis of this benefit is developed analysis – ‘this allows the business to take advantage of opportunities to
increase sales when demand rises and in consequence raise the levels of customer loyalty.’ then 2 analysis marks
should be awarded.
If the analysis of this benefit is limited analysis – ‘this allows the business to take advantage of opportunities to increase
sales when demand rises.’ ’ then 1 analysis mark should be awarded.

Benefit 2 – assuming that this benefit is ‘it will allow a business to benefit from achieving discounts for bulk buy orders’ .
The application might be ‘Will allow a business to benefit from purchasing low priced raw materials’ .
Then the 2 analysis marks should be allocated in the following way:
If the analysis of this benefit is developed analysis – ‘buying raw materials and components in large quantities to keep
inventory levels high may result in substantial discounts which reduces unit costs and could lead to higher profits
then 2 analysis marks should be awarded.
If the analysis of this benefit is limited analysis – ‘buying raw materials and components in large quantities to keep
inventory levels high may result in substantial discounts then 1 analysis mark should be awarded.

Accept all valid responses.

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Question Answer Marks

5(b) Evaluate whether supply chain management is the most important operational activity to the success of a 12
manufacturer of electric cars.

Level AO1 Knowledge AO2 Application AO3 Analysis AO4 Evaluation


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

1 1 mark 1 mark 1 mark 1–2 marks


Limited knowledge Limited application Limited analysis Limited evaluation
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.

0 0 marks 0 marks 0 marks 0 marks


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

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Question Answer Marks

5(b) 2 marks for


2 marks for
2 marks for
6 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


 Supply chain management (SCM) – managing the flow of goods / services / processes that transform raw materials
into final products.
 Supply chain – the different stages involved in making, distributing and selling a good or service, beginning with the
raw material, through to production of parts, to the distribution and sale of the product.
 Operational activities – functions of a business directly related to providing its goods and/or services to the market.
Core business activities, such as: manufacturing, distributing, marketing, and selling a product or service.
 Success of a business – many examples.

 Developed knowledge – SCM is the management of the flow of goods and services – includes all processes that
transform raw materials into final products. (2 marks 2)
 Limited knowledge – managing the supply chain of a business to deliver products to a customer. (1 mark  1)

AO2 Application
 Manufacturer of electric cars
 Specific supply chain (full or part) for electric cars
 Specific components / suppliers of electric cars

 Developed application – Implementing supply chains that will ensure delivery of the special batteries for electric cars is
done at the appropriate time for the production process to run smoothly. (2 marks  2)
 Limited application – SCM is the operational activity that ensures that all required components in electric car
production e.g. batteries are available at the appropriate time. (1 mark  1)

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Question Answer Marks

5(b) AO3 Analysis


 Effective SCM involves:
> Plan – deciding which resources – materials, components, workers and machines – are needed and how many to
avoid waste. Order/employ/buy these to arrive when they are needed for the business to run smoothly and effectively.
> Suppliers – choosing the best and most cost-effective suppliers of components to ensure the quality of the product at
the best price.
> Costs – at each stage costs are recorded and the appropriate price to the customer calculated to assist with
customer loyalty and profitability.
> Manufacture – check the quality and monitor the rate of progress of the customer’s order to assist with customer
loyalty and profitability.
> Deliver – pick transport systems that can deliver goods on time, safely and cost-effectively to assist with reputation,
customer loyalty and profitability.
> Returns – a problem with the product means customer returns it for exchange or refund. This increases costs and
reduces reputation and customer loyalty.
 Effective SCM leads to:
> Lower costs, because the process is more efficient; fewer mistakes being made; greater co-ordination of what is
delivered, when and in what order; better quality supplies; less time between orders and delivery.
> Effective SCM can therefore help provide a business with a competitive advantage.
 Poor SCM can cause delays; increased costs; poor quality; customers receiving only part of their order or receiving the
wrong products and therefore dissatisfied customers.
 Each business will have suppliers who may also have their own suppliers. There is therefore a chain of suppliers from
the raw materials through to the finished product.
 Enterprise resource planning (ERP) software can be used for SCM which improves accuracy and effectiveness of the
process and can give competitive advantage.

 Developed analysis – effective SCM will ensure that the manufacturing quality of electric cars is continually checked
and monitored so that customers do not receive cars with defects which will reduce customer confidence and
loyalty and damage the reputation of the business. (2 marks  2)
 Limited analysis – effective SCM will ensure that the manufacturing quality of electric cars is continually checked and
monitored so that customers do not receive cars with defects . (1 mark  1)

AO4 Evaluation
 Eval 6 – developed judgement/conclusion is made in context (supply chain management) (6 marks )
 Eval 5 – developed evaluative comments given in context (supply chain management) (5 marks )

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Question Answer Marks

5(b)  Eval 4 – developed judgement/conclusion is made, not in context (4 marks )


 Eval 3 – developed evaluative comments made, not in context. (3 marks )
 Eval 2 – judgement/conclusion is made but with little supporting evidence, again not in context. (2 marks )
 Eval 1 – an attempt is made to balance arguments. (1 marks )
 Eval 0 – no evaluation is attempted. (0 marks)

A judgment/conclusion is made as to whether supply chain management is the most important operational activity to the
success of a manufacturer of electric cars.
These judgements/conclusions may be made at any point in the essay, not only in a concluding section.
 To what extent does a business need to set up SCM?
 Is the supply chain sufficiently complex to require SCM systems?
 Is the time taken to establish and enforce a code of conduct for suppliers worth the effort and additional cost?
 What is the opportunity cost to the business of SCM? Is it worth it?
 Can SCM ensure that there is a constant supply of the correct components available in the correct location at the
correct time to allow production to continue? Specialist electric car batteries are not as widely available as other types
of batteries so may need more effective SCM than other businesses.
 Effective SCM will control the inventory levels of components, work in progress and finished products. Car production
could use JIT. Electric cars may be made to order. How important is SCM to the production of electric cars?
 To what extent will positive and negative media coverage relating to the supply chain be important to a car
manufacturer’s success?
 Is ethicality and the environmentally friendly nature of the finished product more important than the process of supply?
 Transportation of components and finished products is controlled via SCM. Will buyers (of electric cars) consider the
method of transport to be more important than the speed of delivery? Will (electric car) buyers be more prepared to
wait to get the product they require?
 Will customers be more concerned with the quality and price of the product (car) rather than the process of getting it to
them?
 Will the buyers of electric cars be more interested in the supply chain than buyers of other types of car?
 Electric car production is being encouraged by governments. Will this mean that SCM is more important?
 There are other operational factors that may be more important than the supply chain, especially for a product which is
developing in accordance with changing government regulations to help to solve a global crisis.

Accept all valid responses.

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Question Answer Marks

6(a) Analyse two reasons why a business should set SMART objectives. 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.
 Developed analysis that identifies connections
between causes, impacts and/or consequences of
one point.

1 1–2 marks 1–2 marks 1–2 marks


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

0 0 marks 0 marks 0 marks


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

2 marks for
2 marks for
4 marks for

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Question Answer Marks

6(a) Indicative content

Responses may include:

AO1 Knowledge and understanding


 Specific – to give focus on the target of the objective.
 Measurable – to show when the objective has been achieved.
 Agreed – so that the employees are aware of what they are aiming for.
 Realistic – so that expectations are achievable.
 Time specific – to establish when the objective should be achieved by.

 One reason – a business sets SMART objectives in order to focus on a particular objective and make it clear how the
objective is to be achieved. (1 mark  1)
 One reason – a business should set SMART objectives in order that it is clear to all employees in the business that the
goals are realistic. (1 mark  1)

AO2 Application
 The marketing department may have to increase sales by 40 per cent over an agreed period.
 The operations department may need to reduce costs by 20 per cent over the next three years.
 The human resources department may have a target to increase labour productivity by 8 per cent over the next year.

 Each department (e.g. marketing) in a business has a focussed SMART objective. (1 mark  1)
 SMART objectives will provide criteria to measure progress towards each objective e.g. operations department
reducing costs by 20%. (1 mark  1)

AO3 Analysis
 Specific – objective must define exactly what the firm is measuring, such as sales or profits. Vague objectives do not
have a focus to show what will be judged. This will mean the objective lacks clarity and will be difficult to achieve.
 Measurable – objectives must include a quantifiable target; for example, a 10 per cent increase. This allows progress
to be monitored and action taken if necessary.
 Agreed – if targets are simply imposed on people, they are likely to resent them. If, however, the targets are discussed
and mutually agreed, people are more likely to be committed to them. The objective is more likely to be achieved.
 Realistic – if the objective is unrealistic (for example, too ambitious), employees may not try to achieve them. To
motivate employees, the targets must be seen as attainable otherwise there is demotivation and absenteeism or
labour turnover may increase.
© UCLES 2023 Page 27 of 32
9609/11 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
Question Answer Marks

6(a)  Time specific – employees need to know how long they have got to achieve the target; for example, is it two or three
years? This aids the measurability of the objective and improves employee focus.

There are 4 marks for Analysis in this question. Possible 2 analysis marks for an identified and applied first
reason and 2 marks for 2 possible analysis marks for an identified and applied second reason. The examples
below indicate how the 2 analysis marks should be allocated to each reason.

Reason 1 – assuming that this reason is ‘To provide focus on a particular objective.’
The application might be ‘The operations department may need to reduce costs by 20 per cent over the next three years.’
.
Then the 2 analysis marks should be allocated in the following way:
If the analysis of this reason is developed analysis, e.g. – ‘SMART objectives will provide a clear understanding of target
requirements by specifying a detailed time frame which is easy to measure . This will lead to employees being able to
organise and plan their work to achieve the objectives set.’ then 2 analysis marks should be awarded.
If the analysis of this benefit is limited analysis – ‘SMART objectives will provide a clear understanding of target
requirements by specifying a detailed time frame which is easy to measure.’ then 1 analysis mark should be awarded.

Reason 2 – assuming that this reason is ‘To ensure that the objectives set are realistic and attainable’ .
The application might be ‘Realistic objectives should be achievable by the current workforce,’ .
Then the 2 analysis marks should be allocated in the following way:
If the analysis of this benefit is developed analysis – ‘If the objectives set are unrealistic then employees may feel unable to
meet the objectives and, in consequence, they may become demotivated.’ ‘This may result in employees leaving the
business.’ then 2 analysis marks should be awarded.
If the analysis of this reason is limited analysis – ‘If the objectives set are unrealistic then employees may feel unable to
meet the objectives and, in consequence, they may become demotivated.’ then 1 analysis mark should be awarded.

Accept all valid responses.

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9609/11 Cambridge International AS & A Level – Mark Scheme May/June 2023
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Question Answer Marks

6(b) ‘Ethics should always influence the human resource management (HRM) activities of a mining business.’ 12

Evaluate this view.

Level AO1 Knowledge AO2 Application AO3 Analysis AO4 Evaluation


and 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 Developed Developed Developed evaluation
knowledge of application of analysis  A developed judgement/conclusion
relevant key term(s) relevant point(s) to that identifies is made.
and/or factor(s) is the business connections  Developed evaluative comments
used to answer the context. between causes, which balance some key
question. impacts and/or arguments.
consequences.
1 1 mark 1 mark 1 mark 1–2 marks
Limited knowledge Limited application Limited analysis Limited evaluation
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.
0 0 marks 0 marks 0 marks 0 marks
No creditable No creditable No creditable No creditable response.
response. response. response.

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Question Answer Marks

6(b) 2 marks for


2 marks for
2 marks for
6 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


 Ethics are moral principles.
 Human resource management activities – workforce planning, recruitment and selection, redundancy and dismissal,
morale and welfare, training and development, management and workforce relations, motivation.

 Developed knowledge – HRM will have concern for the health and welfare of all employees to ensure their safety at
work. (2 marks  2)
 Limited knowledge – HRM has a responsibility to ensure ethical behaviour in the business. (1 mark  1)

AO2 Application
 Mining involves obtaining raw materials from the earth such as: coal, diamonds, gold, silver, platinum, copper, tin and
iron.

 Developed application – The mining of raw materials such as coal and iron ore may well raise moral and ethical
concerns in the business. (2 marks  2)
 Limited application – Ethical considerations relating to the health and safety of miners working underground is a
concern of HRM in a mining business. (1 mark  1)

AO3 Analysis
Appropriate analysis of ethical / unethical HRM activities –
 Workforce planning – anticipating workforce requirements to ensure that the workforce is able to carry out all aspects
of the business without being overworked due to shortage of employees. Poor workforce planning will affect the
efficiency of the business and increase the chances of absenteeism and labour turnover.

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Question Answer Marks

6(b)  Recruitment and selection – employing suitably skilled, trained workers for this type of work. Being fair and not biased
when choosing employees. Mining businesses may exploit low skilled labour due to the location of the mine. Pay may
be poor in some countries to save money on wages.
 Redundancy and dismissal – being fair and not biased when reducing employee numbers. Having an appropriate and
clearly communicated redundancy and dismissal policy. Some employees may have few / no rights within the
businesses.
 Morale and welfare – suitable treatment of employees and established, good and enforced safety. This is a dangerous
industry and accidents can be fatal. Some countries have poor regulation of mining activity so businesses may not be
ethical in their protection of employees.
 Training and development – employees must be familiar with all aspects of the business – machinery / equipment,
safety procedures if they are to remain safe. Can give opportunity for promotion to low skilled workers. Poorly trained
workers are more likely to suffer accidents.
 Management and workforce relations – can be a division between management and employees due to type of work
carried out by each. This can create resentment therefore communication and involvement can be key. Poor
management could result in unethical treatment of employees.
 Motivation – suitable application of financial and non-financial motivational techniques appropriate to the type of work.
Unmotivated employees are likely to be unproductive and may leave the business to work at more ethical competitors.
 Working conditions may be poor, dirty, noisy and dangerous. Should spend money to improve conditions to improve
employee welfare and production potential. Without this there may be criticism of the business as being unethical.
 There are other functional areas of the business – finance and operations etc which may also be ethical / unethical
and the actions of these areas may also influence the running of the mining business.

 Developed analysis – HRM activities will seek to ensure that ethical issues play a major role in ensuring that
employees receive high safety standards of training in their working practices. These HRM activities are designed
to minimise the dangers involved in some high-risk jobs and reduce accidents. (2 marks  2)
 Limited analysis – HRM activities will seek to ensure that ethical issues play a major role in ensuring that employees
receive high safety standards of training in their working practices. (1 mark  1)

AO4 Evaluation
 Eval 6 – judgement/conclusion is made in context (mining business) (6 marks )
 Eval 5 – developed evaluative comments given in context (mining business) (5 marks )
 Eval 4 – developed judgement/conclusion is made, not in context. (4 marks )
 Eval 3 – developed evaluative comments made, not in context (3 marks )
 Eval 2 – judgement/conclusion is made but with little supporting evidence, again not in context. (2 marks )

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Question Answer Marks

6(b)  Eval 1 – an attempt is made to balance arguments. (1 marks )


 Eval 0 – no evaluation is attempted (0 marks)

A judgment/conclusion is made as to whether ethics should always influence the human resource management (HRM)
activities of a mining business.
These judgements/conclusions may be made at any point in the essay, not only in a concluding section.
 Is it financially viable for a mining business to be ethical due to the type of work practices that are necessary in this
industry?
 Is there sufficient support, legislation from the government to enforce ethical HRM activities in a mining business?
 How likely is it that some governments are less willing to control an unethical business because of the revenue that it
creates within the country – taxes?
 Can mining businesses meet the huge international demand for its products if they focus on being ethical rather than
productive?
 Will being more ethical in its HRM activities increase costs?
 Will a subsequent reduction in profits force an increase in the price of the mined materials leading to a reduction in
demand?
 Could ethical HRM activities therefore result in losing customers to competitors and reducing the need for employees?
 Will the trade-off between ethics, reputation, provision of a demanded product and profitability reduce the ability of
these businesses to be competitive against other less ethical businesses?
 Will the ability to have ethical HRM activities depend on the size of the mining business?
 Are HRM activities more important than operational or other activities in this type of business?

Accept all valid responses.

© UCLES 2023 Page 32 of 32


Cambridge International AS & A Level

BUSINESS 9609/12
Paper 1 Business Concepts 1 May/June 2023

1 hour 15 minutes

You must answer on the enclosed answer booklet.


* 0 6 2 0 4 9 6 3 1 5 *

You will need: Answer booklet (enclosed)

INSTRUCTIONS
● Answer five questions in total:
Section A: answer all questions.
Section B: answer one question.
● 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 40.
● 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 (CJ) 316204/1
© UCLES 2023 [Turn over
2

Section A

Answer all questions.

1 (a) Define the term demand. [2]

(b) Explain one factor that influences the supply of a product. [3]

2 (a) Define the term factors of production. [2]

(b) Explain one stage of the transformational process. [3]

3 (a) Define the term equality. [2]

(b) Explain one benefit to a business of employing a diverse workforce. [3]

4 Analyse one way in which conflict between stakeholders may affect a business. [5]

Section B

Answer one question only.

EITHER

5 (a) Analyse two benefits to a business of government grants as a source of finance. [8]

(b) Evaluate whether the most likely reason for the failure of a small retailer is poor management
of its working capital. [12]

OR

6 (a) Analyse two benefits to a business of having a product with a unique selling point (USP). [8]

(b) ‘Marketing is the most important factor that will affect the success of a new coffee shop.’

Evaluate this view. [12]

© UCLES 2023 9609/12/M/J/23


3

BLANK PAGE

© UCLES 2023 9609/12/M/J/23


4

BLANK PAGE

Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every
reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
publisher will be pleased to make amends at the earliest possible opportunity.

To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge
Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download
at www.cambridgeinternational.org after the live examination series.

Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge
Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge.

© UCLES 2023 9609/12/M/J/23


Cambridge International AS & A Level

BUSINESS 9609/12
Paper 1 Business Concepts 1 February/March 2023
MARK SCHEME
Maximum Mark: 40

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 27 printed pages.

© UCLES 2023 [Turn over


9609/12 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.

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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9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2023
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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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9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2023
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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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9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2023
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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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9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2023
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Guidance on using levels-based mark schemes.

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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9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2023
PUBLISHED
9609 Paper 11, 12 and 13
Annotations and their Use

Annotation Use

✓ As an indication of relevant and rewardable content. Better to put these in the body of the answer.

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

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

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

REP This indicates where content has been repeated.

SEEN Indicates that content has been recognised but not rewarded.

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

APP Indicates that there is specific application to the context of the question.

AN Indicates where the answer has demonstrated analysis.

EVAL Indicates where the answer has demonstrated evaluation.

L1, L2, L3 Indicates where the answer reaches the required standard.

1, 2, 3, 4, 5, 6 Indicates the number of K, APP, AN and EVAL marks awarded.

© UCLES 2023 Page 7 of 27


9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2023
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Question Answer Marks

1(a) Define the term opportunity cost. 2

AO1 Knowledge and understanding Marks

Knowledge of the term that demonstrates a clear understanding of the term. 2

Knowledge of the term that demonstrates a partial understanding of the term. 1

No creditable response. 0

Indicative content

Responses may include:

AO1 Knowledge and understanding


• Benefits lost / costs incurred when making a choice between options (clear definition)
• Choice of one option over another (partial definition)

Accept all valid responses.

© UCLES 2023 Page 8 of 27


9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2023
PUBLISHED
Question Answer Marks

1(b) Explain one quality an entrepreneur needs for business success. 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

Responses may include:

AO1 Knowledge and understanding


• Clear understanding of quality(ies) of a successful entrepreneur.
• Risk taker
• Creativity
• Innovation
• Commitment
• Self-motivated
• Multi-skilled
• Self-confidence
• Lead and manage
• Ability to bounce back

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9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2023
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Question Answer Marks

1(b) AO2 Application


• Developed application of one entrepreneur quality to business context: risk taker – prepared to take chances in
business – uses own money to start the business.
• Limited application of one entrepreneur quality to business context: innovation – identifies new ideas/products.

Accept all valid responses.

Question Answer Marks

2(a) Define the term product life cycle. 2

AO1 Knowledge and understanding

Knowledge of the term that demonstrates a clear understanding of the term. 2

Knowledge of the term that demonstrates a partial understanding of the term. 1

No creditable response. 0

Indicative content

Responses may include:

AO1 Knowledge and understanding


• Stages a product goes through from initial design to removal from the market (clear definition)
• The life of a product/the stages set out (partial definition).

Accept all valid responses.

© UCLES 2023 Page 10 of 27


9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2023
PUBLISHED
Question Answer Marks

2(b) Explain one way a business could extend the life of a product 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

Responses may include:

AO1 Knowledge and understanding


• One way to extend the life of the product e.g. reduce price, more advertising.

AO2 Application
• Developed application of one way to extend – reduce product price to attract customers and gain more sales
• Limited application of one way – more advertising to attract customers

Accept all valid responses.

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9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2023
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Question Answer Marks

3(a) Define the term induction training. 2

AO1 Knowledge and understanding

Knowledge of the term that demonstrates a clear understanding of the term. 2

Knowledge of the term that demonstrates a partial understanding of the term. 1

No creditable response. 0

Indicative content

Responses may include:

AO1 Knowledge and understanding


• Training given to new employees – business systems and business layout etc (clear definition)
• Training given to new employees (partial definition)

Accept all valid responses.

© UCLES 2023 Page 12 of 27


9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2023
PUBLISHED
Question Answer Marks

3(b) Explain one benefit to a business of training its employees. 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

Responses may include:

AO1 Knowledge and understanding


• Clear understanding of one business benefit – allows specialisation.

AO2 Application
• Developed application of one business benefit of employee training e.g. skilled employees more efficient so reduced
errors.
• Limited application of one business benefit of employee training – e.g. increases motivation and reduces staff turnover.

Accept all valid responses.

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9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2023
PUBLISHED
Question Answer Marks

4 Analyse one way a business might raise productivity levels. 5

Level AO1 Knowledge and AO2 Application AO3 Analysis


understanding 2 marks 2 marks
1 mark

2 2 marks 2 marks
Developed application of one Developed analysis that identifies
relevant point to a business connections between causes,
context. impacts and/or consequences of
one relevant point.

1 1 mark 1 mark 1 mark


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

0 0 marks 0 marks 0 marks


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

Indicative content

Responses may include:

AO1 Knowledge and understanding


• Knowledge of productivity levels – ratio of outputs to inputs during production OR ways to improve productivity levels
e.g. capital investment, training, etc.

AO2 Application
• Developed application of ways to improve productivity levels in a business context - .
• Limited application of ways to improve productivity levels in a business context - .

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9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2023
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Question Answer Marks

4 AO3 Analysis
• Developed analysis of one chosen way - how increased training can increase confidence/interest of employees
leading to enhanced worker productivity and performance.
• Limited analysis of one chosen way - how raising the skill levels of employees may improve efficiency and productivity.

Accept all valid responses.

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9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2023
PUBLISHED
Question Answer Marks

5(a) Analyse two ways in which accurate cost information can be used to improve business performance. 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.
• Developed analysis that
identifies connections
between causes, impacts
and/or consequences of one
point.

1 1–2 marks 1–2 marks 1–2 marks


• Knowledge of two relevant • Application of two relevant Limited analysis
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.

0 0 marks 0 marks 0 marks


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

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9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2023
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Question Answer Marks

5(a) Indicative content

Responses may include:

AO1 Knowledge and understanding

• Knowledge of accurate cost information / improved business performance OR knowledge of ways to improve business
performance e.g. price setting, setting budgets, cost cutting strategies, construct CFF, record keeping/attracting
investors in a business/cash flow

AO2 Application
• Accurate cost information applied to a business context e.g. price setting / setting budgets / cost cutting strategies /
construct CFF / record keeping / attracting investors in a business.

AO3 Analysis
• Accurate information about business costs is vital for a number of key decisions – without it a business will likely fail.
• Cost information relating to pricing, budgets, objectives, profitability and competitors is essential for management
monitoring and control
• Benchmark cost levels can be set – used to compare comparative performance internally and with competitors
externally.
• Cost reduction strategies can be developed – requires accurate information to be effective.
• Cost information can be used to identify significant areas and factors for attention – allows focussed analysis on
organisation sections.
• Assets on the balance sheet need to be accurately valued on the balance sheet – the cost basis of inventory might
signal change required
• Business performance requires optimal choices – these alternatives depend heavily on cost factors
• Competitive edge requires regular monitoring of financial performance – accurate cost data is fundamental to many
financial metrics that need tracking – e.g. profit margins
• Cost information is fundamental to business questions such as – what are the most and least profitable areas of the
business?
• Accurate cost information leads to effective cost controls – produces an ability to check if the business is functioning in
compliance with the budget
• Accurate cost control information is the mechanism for effective monitoring of performance – and improvement of its
operations

Accept all valid responses.


© UCLES 2023 Page 17 of 27
9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2023
PUBLISHED
Question Answer Marks

5(b) Evaluate whether cash flow forecasting is the most important activity for a new restaurant to succeed. 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/conclusio
n 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 application Developed analysis Developed evaluation
of relevant key term(s) of relevant point(s) to the that identifies • A developed
and/or factor(s) is used business context. connections between judgement/
to answer the question. causes, impacts and/or conclusion is made.
consequences. • Developed
evaluative
comments which
balance some key
arguments.

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9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2023
PUBLISHED
Question Answer Marks

5(b)
Level AO1 Knowledge and AO2 Application AO3 Analysis AO4 Evaluation
understanding 2 marks 2 marks 6 marks
2 marks

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

0 0 marks 0 marks 0 marks 0 marks


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

Indicative content

Responses may include:

AO1 Knowledge and understanding


• Developed knowledge of CFF /new restaurant / success - .
• Limited knowledge of CFF / new restaurant / success - .

AO2 Application
• Developed application of CFF to context of a restaurant business - .
• Limited application of CFF to context of a restaurant business - .

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9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2023
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Question Answer Marks

5(b) AO3 Analysis


• A business may run out of cash – cannot pay suppliers or wages – it may face insolvency-cash flow forecast may be
the vital missing measure of control/discipline
• CFF enables a business to track expected cash movements over a period of time in the future – and take appropriate
action
• CFF provides an early warning system for future shortfalls in cash balances in the future – allows a business to take
informed business decisions, e.g. overdraft provision or short-term loan
• CFF assists effective cash flow management – provides greater certainty for internal and external stakeholders
• CFF is a strategic tool – it informs business plans for survival and growth
• Cash is the lifeblood of new and small businesses, so it is essential that forecasts are made about future cash flows –
to make sure a business has enough to survive
• External stakeholders, such as banks, may want to look at CFF at regular intervals – to make judgements about the
viability of a business
AO4 Evaluation
The following examples illustrate how the levels and marks within the levels are applied. The annotation is shown in bold.
Developed evaluative comments might include –
• Without effective CFF, cash problems will not be identified. It is crucial that businesses have financial stability in the
short and the long term.
• As well as CFF, promotion/marketing is also very important. Business success is unlikely to be achieved if the
business is not made attractive to potential customers through effective operation of the 4P’s e.g. competitive
pricing.
• Without an effective recruitment and selection process that produces appropriately experienced and skilled
employees, a business is unlikely to achieve lasting success. This HRM activity is crucial for business success.’
(EVAL L2 3 marks)
Only developed evaluative comments applied directly to the context of a restaurant to move into (EVAL L3 5 marks).
Developed judgement – example - CFF is very important, as analysed above, because a business is at risk without
sufficient cash controls, however, CFF is not the most important activity. Cash control will not necessarily guarantee
product quality, customer satisfaction and loyalty. CFF is an essential activity but others such as marketing and
appropriately skilled employees are all essential in their own way and as important as CFF. Activities other than CFF are
crucial to business success, but unless they are combined with CFF, success is unlikely to be achieved and the business
might even fail. (EVAL L2 4 marks)
Only a developed judgement applied directly to the context of a restaurant can move into EVAL L3.
© UCLES 2023 Page 20 of 27
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Question Answer Marks

5(b) Limited evaluation (EVAL L1 1 mark)


• What does success mean for a new restaurant – survival in the short term / large profits in the long term
• Are there other activities as important, or more important, that might affect a restaurant’s ability to succeed, such as –
perception of the quality of the food/menu – location – reputation of chef – ambience created – strength/weakness of
the economy – amount of discretionary/disposable income?
• How significant is cash control and CFF for a new business such as a new restaurant?

Example of limited evaluation (EVAL L1 2 marks)


CFF is more important than any other business activity to lead to success. It supports all other activities a business carries
out such as marketing.

Accept all valid responses.

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9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2023
PUBLISHED
Question Answer Marks

6(a) Analyse two reasons why changing a business`s objectives might affect its shareholders. 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.
• Developed analysis that
identifies connections
between causes, impacts
and/or consequences of one
point.

1 1–2 marks 1–2 marks 1–2 marks


• Knowledge of two relevant • Application of two relevant Limited analysis
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.

0 0 marks 0 marks 0 marks


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

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9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2023
PUBLISHED
Question Answer Marks

6(a) It is acceptable for candidates to answer this question by using ONE changed objective that causes TWO different
effects on shareholders.

Indicative content

Responses may include:

AO1 Knowledge and understanding


• Knowledge of objectives/shareholders.
• Reasons why objectives might change e.g. survival to growth, profit making to social responsibility.

AO2 Application
• Changed business objectives applied to shareholders - .

AO3 Analysis
• Changes may be agreed by some shareholders but not supported by others – leading to conflict and division
• Different shareholders have their own personal interests – they will try to protect those interests
• Some shareholders may see CSR as detrimental to profit making – raise issue at AGM
• Shareholders may see a movement away from economic objectives towards social or human objectives as
undermining the very purpose of the business – to make profit

Accept all valid responses.

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9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2023
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Question Answer Marks

6(b) ‘The main reason why many niche cake manufacturing businesses fail is that they grow too quickly’. Evaluate this 12
view.

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

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9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2023
PUBLISHED
Question Answer Marks

6(b)
Level AO1 Knowledge and AO2 Application AO3 Analysis AO4 Evaluation
understanding 2 marks 2 marks 6 marks
2 marks

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

0 0 marks 0 marks 0 marks 0 marks


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

Indicative content

Responses may include:

AO1 Knowledge and understanding


• Knowledge of business failure/growth / niche/manufacturing businesses.

AO2 Application
• Developed application of business failure/growth to a niche cake manufacturing business - .
• Limited application of business failure/growth to a niche cake manufacturing business - .

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9609/12 Cambridge International AS & A Level – Mark Scheme February/March 2023
PUBLISHED
Question Answer Marks

6(b) AO3 Analysis


• Fast growth can mean a business loses focus on essential functions and take too many risks – e.g. product
diversification
• Fast growth can lead to significantly increased demands on employees and especially managers- stress, fatigue, burn
out
• Inferior service may result in lower levels of customer satisfaction as attempt is made to produce more
• Output demands may outpace capability
• A business might accept new clients without resources to meet the demand
• A business might launch a new product with inadequate research and development – not ready for market
• A business might expand into unfamiliar/ fragile markets and territories – suffer significant losses
• A business might fail to account for and control overhead costs – that increase disproportionately in relation to growth
• Too fast growth can result in cash shortages and/or long-term damage to the brand and customer relations of a
business

AO4 Evaluation
The following examples illustrate how the levels and marks within levels are applied. The annotations are shown in bold.

Developed evaluative comments (EVAL L2 3 marks)


• Growth that is too quick is likely to undermine the success of any business, particularly if the managers are not skilled
enough to see that fast growth places enormous pressure on some aspects of the business, such as cash flow.
• Businesses that grow very quickly may assume that profit-making in the short term means success, but if the
quality of the products deteriorates due to unskilled workers the long term viability of the business is not guaranteed
and the business might fail as quickly as it grows.
• Without effective marketing and quality control and a recognition of the threat of competitive ‘copy-cats’ a business
may be quickly undermined and fail.’

Only developed evaluative comments applied directly to the context of a niche cake manufacturing business can move to
EVAL L3 5 marks.

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Question Answer Marks

6(b) Example of developed judgement (EVAL L2 4 marks)


There are many other reasons why a business might fail (already discussed) but none of those are more important than the
ability to manage the growth of the business. Many businesses lack the skills to meet the demands made as a business
grows quickly, such as the control of cash flows and the hiring of an appropriate number of skilled employees. Fast growth
may mean that a business is still making profits, but losing control of costs and employees, and/or managers that may not
have the time or ability to recognise that lack of control, is the most important factor in the failure of a new business.

Only developed judgement applied directly to the context of a niche cake manufacturing business can move to EVAL L3 6
marks.

Limited evaluation (EVAL L1)


• Growth alone is not sufficient to sustain a business – stability and controlled growth are required
• Are there some recognisable risks associated with fast growth of a niche cake manufacturing business that can lead to
business failure?
• Are there some specific characteristics of a niche cake manufacturing business that are likely to lead to failure?
• Does failure depend on whether the business is new or established?
• Niche cake manufacturing businesses are often single product businesses (e.g. cupcakes) – which are often
fashionable/trendy but high risk – is this the reason for failure rather than fast growth?
• Are there other factors/risks (some closely associated with fast growth) such as poor management, level of
competition, poor decision-making, poor marketing and cash control, lack of innovation/creativity that can explain
business failure of a niche cake manufacturing business?

Accept all valid responses.

Example of limited evaluation (EVAL L1 2 marks)


Fast growth is the main reason why businesses fail. Without an understanding of the effect of fast growth on a business,
many problems will not be anticipated, such as lack of skilled employees, and the business will fail.

Example of limited evaluation (EVAL L1 1 mark)


The analysis above indicates that fast growth is an important reason why a business fails – but other reasons such as
marketing and promotion are also important.

© UCLES 2023 Page 27 of 27


Cambridge International AS & A Level

BUSINESS 9609/13
Paper 1 Business Concepts 1 May/June 2023

1 hour 15 minutes

You must answer on the enclosed answer booklet.


* 3 4 9 3 5 6 5 0 6 9 *

You will need: Answer booklet (enclosed)

INSTRUCTIONS
● Answer five questions in total:
Section A: answer all questions.
Section B: answer one question.
● 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 40.
● 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 (CJ) 316205
© UCLES 2023 [Turn over
2

Section A

Answer all questions.

1 (a) Define the term social enterprise. [2]

(b) Explain one weakness of family businesses. [3]

2 (a) Define the term dismissal. [2]

(b) Explain how one human need may be satisfied at work. [3]

3 (a) Define the term mass marketing. [2]

(b) Explain one advantage to a business of segmenting its market. [3]

4 Analyse one reason why labour productivity is important to a business. [5]

Section B

Answer one question only.

EITHER

5 (a) Analyse two purposes of a cash flow forecast for a business. [8]

(b) Evaluate whether break-even analysis is the most important finance activity for a new
manufacturer of bicycles. [12]

OR

6 (a) Analyse two benefits to a business of using external recruitment to employ a manager. [8]

(b) ‘A motivated workforce is the most important factor for the success of a low-price airline.’

Evaluate this view. [12]

© UCLES 2023 9609/13/M/J/23


3

BLANK PAGE

© UCLES 2023 9609/13/M/J/23


4

BLANK PAGE

Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every
reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
publisher will be pleased to make amends at the earliest possible opportunity.

To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge
Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download
at www.cambridgeinternational.org after the live examination series.

Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge
Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge.

© UCLES 2023 9609/13/M/J/23


Cambridge International AS & A Level

BUSINESS 9609/13
Paper 1 Business Concepts 1 May/June 2023
MARK SCHEME
Maximum Mark: 40

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 32 printed pages.

© UCLES 2023 [Turn over


9609/13 Cambridge International AS & A Level – Mark Scheme May/June 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.

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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9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
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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9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
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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9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
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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9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
Guidance on using levels-based mark schemes

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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9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2023
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Annotations and their Use

Annotation Use

 As an indication of relevant and rewardable content. Better to put these in the body of the answer.

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

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

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

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

APP Indicates that there is specific application to the context of the question.

AN Indicates where the answer has demonstrated analysis.

EVAL Indicates where the answer has demonstrated evaluation.

REP This indicates where content has been repeated.

SEEN Indicates that content has been recognised but not rewarded.

L1, L2, L3 Indicates where the answer reaches the required standard.

1, 2, 3, 4, 5, 6 Indicates the number of K, APP, AN and EVAL marks awarded.

© UCLES 2023 Page 7 of 32


9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
Question Answer Marks

1(a) Define the term ‘social enterprise’. 2

AO1 Knowledge and understanding Marks

Knowledge of the term that demonstrates a clear understanding of the term. 2

Knowledge of the term that demonstrates a partial understanding of the term. 1

No creditable response. 0

Indicative content

Responses may include:

AO1 Knowledge and understanding


 A business with mainly social objectives that reinvests most of its profits into benefitting society rather than maximising
returns to owners. Clear understanding (2 marks)  2
 A business with primarily social objectives/triple bottom line. Partial understanding (1 mark)  1

Accept all valid responses.

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9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
Question Answer Marks

1(b) Explain one weakness of family businesses. 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

Responses may include:

AO1 Knowledge and understanding


 Lack of skills or experience
 Conflict between family members
 Favouritism
 Lack of family interest from younger family members
 Lack of continuity
 Lack of finance

 One weakness of a family business is likely to be the lack of managerial expertise – other factors could include conflict,
favouritism, continuity. (1 mark)  1

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9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
Question Answer Marks

1(b) AO2 Application


 Family members appointed to roles they do not have the skills or experience for – gaps in needed business skills.
 Conflict can arise between family members – due to personality clashes.
 Favouritism where the best person isn’t always appointed to a job – which can cause resentment from non-family
employees.
 Difficulty in deciding who will take over the business in the long term – causing the business to not have a clear
direction.
 Lack of family interest from younger family members – which threatens the long-term future of the business remaining
within the family.

 Developed application of one weakness – family members do not have the appropriate skills to run a business,
appointed for family reasons, level of expertise – gaps in needed business skills. (2 marks).  2
 Limited application of one weakness – family members do not have the appropriate skills to run a business, appointed
for family reasons. (1 mark).  1

Accept all valid responses.

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9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
Question Answer Marks

2(a) Define the term ‘dismissal’. 2

AO1 Knowledge and understanding

Knowledge of the term that demonstrates a clear understanding of the term. 2

Knowledge of the term that demonstrates a partial understanding of the term. 1

No creditable response. 0

Indicative content

Responses may include:

AO1 Knowledge and understanding


 Being dismissed/sacked/fired from a job due to incompetence/misconduct/breach of discipline. (Clear definition –
2 marks  2
 Dismissal occurs when an employer is sacked from a job. (Partial definition – 1 mark  1

Accept all valid responses.

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9609/13 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
Question Answer Marks

2(b) Explain how one human need may be satisfied at work. 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

Responses may include:

AO1 Knowledge and understanding


 A human need is a basic requirement that an individual wishes to satisfy at work. Physical needs may include food,
clothing and shelter. Individual needs include desires for knowledge, recognition and self-esteem, confidence,
approval, self-worth.
 Improved working conditions
 High wages
 Shorter hours
 Promotion
 Teamwork
 Recognition
 Health and safety

 Giving shorter working hours. (1 mark )

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Question Answer Marks

2(b) AO2 Application


 Physical needs are satisfied by income from employment – that is sufficient to meet essential needs.
 Physical needs can also be satisfied by having access to vital services in the workplace – these could be toilet and
canteen facilities and a comfortable working environment.
 Safety needs are satisfied by a contract of employment – which ensures some degree of job security.
 Safety needs can also be satisfied by a structured organisation – that gives clear lines of authority to reduce
uncertainty.
 Ensuring health and safety conditions are met – to reduce fear of injury at work.
 Social needs are satisfied by working in teams or groups – which ensure good communication that will make the
workers feel involved.
 Esteem needs are satisfied by recognition for work well done – employee of the month – which can boost esteem.
 Status at work, advancement and responsibility – can enable an employee to gain the respect of others.
 Self-actualisation via challenging work that stretches the individual – which can give an employee a sense of
achievement.
 The opportunities to develop and employ new skills – which can increase an employee’s potential.

 Developed application – the need for esteem is satisfied when employees receive recognition for work in the form of
promotion or given a bonus or award such as employee of the month. (2 marks  2
 Limited application – the need for esteem is satisfied when employees receive recognition. (1 mark  1

Accept all valid responses.

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Question Answer Marks

3(a) Define the term ‘mass marketing’. 2

AO1 Knowledge and understanding

Knowledge of the term that demonstrates a clear understanding of the term. 2

Knowledge of the term that demonstrates a partial understanding of the term. 1

No creditable response. 0

Indicative content

Responses may include:

AO1 Knowledge and understanding


 Selling/targeting the whole/majority of the market. Clear understanding (2 marks)  2
 Selling the same/standardised product or selling to a large group of people. Partial understanding (1 mark).  1

Accept all valid responses.

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Question Answer Marks

3(b) Explain one advantage to a business of segmenting its market. 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

Responses may include:

AO1 Knowledge and understanding


 Reduces risk
 Focused on customer
 More efficient use of resources
 Allows small businesses to enter a market
 Allows price discrimination
 Identify a gap in the market

 One advantage to a business in segmenting a market is that it is more focused on the customer. (1 mark )

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Question Answer Marks

3(b) AO2 Application


 Allows a business to focus on and attract the ‘right’ customer – may give an initial commercial advantage.
 Reduces risk in deciding what to produce and where to supply – hence minimises waste.
 Efficient use of resources – targeting groups prevents waste by selling to only interested customers.
 Allows small businesses to enter a market and focus on limited target groups – therefore developing a foothold in a
specific segment.
 Allows price discrimination in different segments – hence maximising sales revenue.

 Developed application – a business with a focus on customers with similar characteristics means the business can
focus its market research and advertising on a specific group. (2 marks  2
 Limited application – focus on customers with similar characteristics means the business can focus its marketing.
(1 mark  1

Accept all valid responses.

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Question Answer Marks

4 Analyse one reason why labour productivity is important to a business. 5

Level AO1 Knowledge and AO2 Application AO3 Analysis


understanding 2 marks 2 marks
1 mark

2 2 marks 2 marks
Developed application of one Developed analysis that identifies
relevant point to a business context. connections between causes,
impacts and/or consequences of
one relevant point.

1 1 mark 1 mark 1 mark


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

0 0 marks 0 marks 0 marks


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

Indicative content

Responses may include:

AO1 Knowledge and understanding


 Increased output
 Increased competitiveness
 Lower operational costs

 Labour productivity may increase output. (1 mark  1

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Question Answer Marks

4 AO2 Application
 Increased output – as workers producing goods quicker
 Lower operational costs – of day-to-day operations – charge lower prices
 Improved customer service – customer satisfaction/happier customer
 Improved staff morale – staff are generally happier – fewer staff leave
 Reduced waste/environmental impact

 Developed application –enables a business to set lower prices – attract more customers. (2 marks  2
 Limited application – enables a business to set lower prices (1 mark  1

AO3 Analysis
 Labour productivity can lead to increased profitability – when it becomes less expensive to produce goods and
services.
 Lowering operational costs – due to more products being produced in less time either by more efficient staff or an
investment in machinery.
 Ability to charge a lower price than competitors or deliver your service more quickly – which give the business a
competitive advantage – increased sales and revenue.
 Enables a business to optimise its resources – which can reduce costs and increase efficiency – greater profit margin.
 Improved customer service when customers are given more time and attention – therefore customer loyalty
 Improved productivity can lead to business growth – which can encourage further investment.
 Reduced waste and environmental impact – which could save costs but also have a positive effect on the business
image.
 Improved staff morale when they know how to do a job more efficiently and feel more in control – hence lower staff
turnover/absenteeism – lower recruitment costs.

 Developed analysis – Ability to charge a lower price than competitors or deliver your service more quickly – which gives
the business a competitive advantage – increased sales and revenue. (2 marks  2
 Limited analysis – Ability to charge a lower price than competitors or deliver your service more quickly – which gives
the business a competitive advantage. (1 mark  1

Accept all valid responses.

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Question Answer Marks

5(a) Analyse two purposes of a cash flow forecast for a business. 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.
 Developed analysis that
identifies connections between
causes, impacts and/or
consequences of one point.

1 1–2 marks 1–2 marks 1–2 marks


 Knowledge of two relevant  Application of two relevant Limited analysis
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.

0 0 marks 0 marks 0 marks


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

2 marks for
2 marks for
4 marks for

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Question Answer Marks

5 Indicative content

Responses may include:

AO1 Knowledge and understanding


 Identify future levels of cash inflow/outflow
 Know when to apply for an overdraft
 Monitor amount owed by debtors
 Monitor how much they owe suppliers

 A CFF provides a business with an understanding of potential future levels of cash (1 mark  1
 Forecasts periods when it needs to apply for an overdraft/loan. (1 mark  1

AO2 Application
 Helps identify potential shortfalls in cash balances
 Helps identify estimated future sales
 Enables the business to make sure it can pay suppliers and workers
 Allows business to monitor debtors – and if they need to change repayment periods
 Can plan when they may require an overdraft – so can arrange this with the bank

 CFF provides information relating to periods when there may not be enough cash to meet day-to-day expenses.
(1 mark  1
 CFF provides information relating to future periods when there might be a surplus level of cash in the business.
(1 mark  1

AO3 Analysis
 Enables businesses to make decisions now in anticipation of future problems – to prevent insolvency.
 Arrange bank overdraft to prevent liquidity problems – therefore able to pay wages/suppliers/rent.
 Avoids potential problems that might arise if suppliers and workers are not paid on time – such as suppliers refusing to
offer further credit or workers going on strike or leaving.
 Can spot problems with overdue customer payments and take action to receive payments.
 To see if the business is meeting its financial objectives – therefore keeping shareholders satisfied.
 Might decide to offer discounts for early payments – which improves cash inflow.
 Might decide to lease equipment instead of buying it – so outflows can be spread out across the year.

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Question Answer Marks

5  Might make decisions to increase prices or cut costs – to remain competitive.


 Reduce the amount of cash tied up in stock – which reduces opportunity cost.
 Delay payments to suppliers – when cash inflows are low – which reduces cash outflows to improve liquidity.
 Delay expansion plans – to prevent short-term overspending.

There are 4 marks for Analysis in this question. Possible 2 analysis marks for an identified and applied first benefit
and 2 marks for 2 possible analysis marks for an identified and applied second benefit. The examples below
indicate how the 2 analysis marks should be allocated to each benefit.

Purpose 1 – assuming that this purpose is ‘A CFF helps the business identify future levels of cash inflow’ (1 mark .)
The application might be ‘as there may be insufficient cash to meet day to day needs without arranging an overdraft.
(1 mark  1
Then the 2 analysis marks should be allocated in the following way:
If the analysis of this purpose is developed analysis, e.g. – ‘This may mean a business has time to arrange a suitable bank
overdraft to prevent liquidity problems, and as a result the business will be able to pay supplies, wages, electricity etc.
’. then 2 analysis marks should be awarded.
If the analysis of this benefit is limited analysis, – ‘This may mean a business has time to arrange a bank overdraft to
prevent liquidity problems.’ then 1 analysis mark should be awarded.

Purpose 2 – assuming that this purpose is ‘Allows business to monitor amount owed by debtors.’ . The application might
be, ‘and whether they need to change the repayment period.’ .
Then the 2 analysis marks should be allocated in the following way:
If the analysis of this benefit is developed analysis, – ‘‘This gives the business time to contact debtors to see when they will
be paid,’ ‘so that they have sufficient cash inflow to pay suppliers, wages and other bills.’’ then 2 analysis marks
should be awarded.
If the analysis of this benefit is limited analysis, – ‘This gives the business time to contact debtors to see when they will be
paid.’ then 1 analysis mark should be awarded.

Accept all valid responses.

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Question Answer Marks

5(b) Evaluate whether break-even analysis is the most important finance activity for a new manufacturer of bicycles. 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 of Developed application of Developed analysis Developed evaluation
relevant key term(s) relevant point(s) to the that identifies connections  A developed
and/or factor(s) is used to business context. between causes, impacts judgement/conclusion
answer the question. and/or consequences. is made.
 Developed evaluative
comments which
balance some key
arguments.

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Question Answer Marks

5(b)
Level AO1 Knowledge and AO2 Application AO3 Analysis AO4 Evaluation
understanding 2 marks 2 marks 6 marks
2 marks

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

0 0 marks 0 marks 0 marks 0 marks


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

2 marks for
2 marks for
2 marks for
6 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


 Break-even analysis determines the number of units and amount of revenue that is needed to cover a business’s total
costs.
 Knowledge of any other finance activity e.g. cash flow forecast

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Question Answer Marks

5(b)  Developed knowledge – break-even analysis shows a business how many products need to be made and sold before
a profit can be made. (2 marks  2
 Limited knowledge – break-even analysis shows whether a business is making a profit or a loss. (1 mark  1

AO2 Application
 Allows the bicycle manufacturer to classify the different costs of making a bike – purchase of carbon/aluminium, tyres,
components, chain, cables, etc.
 Enables potential revenues to be calculated from bicycle sales to retailers.
 May need to purchase machinery that can turn carbon/aluminium into bike frames.

 Developed application – break-even analysis calculates the point at which potential revenues from mountain bike sales
covers the variable costs e.g. tyres, cables, plus the fixed costs e.g. rent of factory. (2 marks  2
 Limited application – break-even analysis calculates the point at which potential revenues from mountain bike sales
covers the total costs of making them. (1 mark  1

AO3 Analysis
 The technique can be used to help increase the chances of success for a new product – ensuring the new business
gets off to the best possible start.
 Can provide information, such as is it worth going ahead with this new product – which could prevent significant losses.
 As an essential part of a business plan – which the new business could use to gain investment.
 Variable costs can change regularly – so the break-even analysis will not be accurate.
 Management can look at the profit generated at different levels of sales – which can help with future financial planning.
 Find out sales levels to reach target profit – so can plan marketing budgets/materials needed.
 Enables management to look at impact of changes in selling price and costs – which enables budgets to be set.

 Developed analysis – break-even analysis provides information relating to potential levels of sales, revenues and
profits, which will determine the profitability of the business – without break-even analysis a new manufacturer could
well overestimate the potential profitability of a venture and suffer significant losses. (2 marks  2
 Limited analysis – break-even analysis provides information relating to potential levels of sales, revenues and profits,
which will determine the profitability of the business. (1 mark  1

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Question Answer Marks

5(b) AO4 Evaluation


Eval 6 – developed judgement/conclusion is made in context (new manufacturer of bicycles) (6 marks )
Eval 5 – developed evaluative comments given in context (new manufacturer of bicycles) (5 marks )
Eval 4 – developed judgement/conclusion is made, not in the context of a new manufacturer of bicycles. (4 marks )
Eval 3 – developed evaluative comments made, not in the context of a new manufacturer of bicycles. (3 marks )
Eval 2 – judgement/conclusion is made but with little supporting evidence, again not in context. (2 marks )
Eval 1 – an attempt is made to balance arguments. (1 marks )
Eval 0 – no evaluation is attempted. (0 marks)

 A judgement/conclusion is made as to the importance of break-even analysis or any other finance activity for the
success of a new bicycle manufacturer.
 Such judgements/conclusions may be made at any point in the essay, not only in a concluding section.
 A conclusion about what the new bicycle manufacturer hopes to achieve in the long and short term.
 A conclusion as to what they hope to achieve once they are breaking even and how it can impact on future business
plans.
 A judgement that break-even analysis assumes that costs and revenues are always represented by straight lines is
unrealistic and therefore cannot be relied upon to provide accurate information.
 A conclusion that it does not predict demand so break-even analysis can often be more ambitious than initially thought.
 A judgement that the strategies and performance of competitors are not factored into the equation.
 A judgement about the environment in which the manufacturer exists and that it is subject to factors beyond its control
e.g. economic downturn or worldwide pandemic.
 A conclusion that break-even analysis should be seen as a planning aid rather than a decision-making tool.
 A judgement that other finance activities are more important, as cash flow forecasts can prevent the business
becoming illiquid.

Accept all valid responses.

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Question Answer Marks

6(a) Analyse two benefits to a business of using external recruitment to employ a manager. 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.
 Developed analysis that
identifies connections between
causes, impacts and/or
consequences of one point.

1 1–2 marks 1–2 marks 1–2 marks


 Knowledge of two relevant  Application of two relevant Limited analysis
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.

0 0 marks 0 marks 0 marks


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

2 marks for
2 marks for
4 marks for

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Question Answer Marks

6(a) Indicative content

Responses may include:

AO1 Knowledge and understanding


 Bring new ideas
 Broader choice of candidates
 Standards of applicants may be higher
 Able to access a large talent pool
 Gain a more diverse workforce
 A wider range of skills and experience

 A benefit of external recruitment of a manager may be the opportunity to recruit from a large talent pool (1 mark
 1 .
 A benefit of external recruitment of a manager is that it may offer the business a wider range of skills and experience.
(1 mark  1

AO2 Application
 External applicants will bring new ideas – as they may have worked in different environments.
 A broader choice of candidates – compared to the limited amount if you only recruit internally.
 Standards of applicants may be higher – as you may recruit via specialist recruitment agencies.
 Able to access a large talent pool – due to the number of candidates who you might potentially reach.
 Gain a more diverse workforce – as you are searching a broader pool of candidates.
 A wider range of skills and experience – as candidates may have worked in different environments possibly even
abroad.

 External recruitment may allow a business to gain a more diverse workforce as they are searching a broader pool of
candidates. (1 mark  1
 Standards of applicants may be higher as they may recruit via specialist recruitment agencies. (1 mark  1

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Question Answer Marks

6(a) AO3 Analysis


 Getting the right candidate could ensure future business success – as new ideas may lead to the business becoming
market leader.
 Could inspire workers to be more productive and efficient – which could give the business a competitive edge or
reduce costs.
 New ideas could help grow the business, give the business a competitive edge – which could lead to higher sales
revenue or market share.
 An externally recruited manager could have wider range of skills and experience – leading to increased market share
and profits.
 Stops the business doing what it’s always done and gain a fresh approach to problems – which could enable it to
become more innovative in the market.

There are 4 marks for Analysis in this question. Possible 2 analysis marks for an identified and applied first benefit
and 2 marks for 2 possible analysis marks for an identified and applied second benefit. The examples below
indicate how the 2 analysis marks should be allocated to each benefit.

Benefit 1 – assuming that this benefit is ‘broader choice of candidates.’


The application might be ‘compared to the limited amount if you only recruit internally.’’ .
Then the 2 analysis marks should be allocated in the following way:
If the analysis of this benefit is developed analysis, eg – ‘have wider range of skills and experience,’ which may lead to
the business increasing its market share and likely increasing its level of profitability.’ . then 2 analysis marks should be
awarded.
If the analysis of this benefit is limited analysis, – ‘have wider range of skills and experience.’ then 1 analysis mark
should be awarded.

Benefit 2 – assuming that this benefit is ‘The business might gain a more diverse workforce. .
The application might be ‘which enables a variety of different perspectives,’ .
Then the 2 analysis marks should be allocated in the following way:
If the analysis of this benefit is developed analysis, – ‘many businesses strive for a diverse workforce as it promotes
inclusion and can give the business a competitive advantage,’ ‘and this could help attract the best candidates in future
which could lead to innovation and greater sales.’ then 2 analysis marks should be awarded.
If the analysis of this benefit is limited analysis, – ‘a more diverse workforce brings more ideas which could give the
business an advantage over its competitors,’ then 1 analysis mark should be awarded.

Accept all valid responses.


© UCLES 2023 Page 28 of 32
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Question Answer Marks

6(b) ‘A motivated workforce is the most important factor for the success of a low price airline.’ 12
Evaluate this view.

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

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Question Answer Marks

6(b)
Level AO1 Knowledge and AO2 Application AO3 Analysis AO4 Evaluation
understanding 2 marks 2 marks 6 marks
2 marks

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

0 0 marks 0 marks 0 marks 0 marks


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

2 marks for
2 marks for
2 marks for
6 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


 Motivation is about the factors that encourage individuals to be committed and interested in their job.
 Motivation is the internal and external factors that stimulate people to take actions that lead to achieving a goal.
 Business success can be measured in a number of ways – maximising shareholder returns, market share, profits,
goodwill created, labour turnover, liquidity, sales growth, stakeholder engagement.

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Question Answer Marks

6(b)  Developed knowledge – a motivated workforce is important for a business which aims for high levels of customer
satisfaction provided by committed employees. (2 marks  2
 Limited knowledge – another factor for business success is financial stability. (1 mark  1

AO2 Application
 Customer service agents and cabin crew deal directly with customers – therefore need to have a professional and
friendly attitude.
 Motivated staff can better handle difficult passengers – if, for example, flights are delayed.
 Pilots need to be motivated to handle pressure – as they are responsible for potentially hundreds of passengers.
 Staff often get large discounts on flights as a fringe benefit – which means cheap holidays or city breaks.
 Demotivated baggage handlers may damage luggage when loading and unloading airplanes.

 Developed application – a successful business model for a low price airline will include a motivated workforce which
makes travel fun and exciting to complement the aim of providing safe and punctual journeys. (2 marks  2
 Limited application – a successful business model for a low price airline will include a motivated workforce which
makes travel fun and exciting. (1 mark  1

AO3 Analysis
 Motivated staff can have a direct impact on productivity and business efficiency – which might reduce business costs.
 Potentially lower labour turnover and absenteeism if staff are motivated in their jobs – which reduces the costs of
recruitment.
 Employees are more likely to accept responsibility and take an active role in the workplace – which may lead to
improved business practices and a better customer experience.
 Demotivated staff may be rude or not deal very well with customers– which might lead to customers leaving bad
reviews and not using the business again in the future.
 Improved industrial relations with trade unions – therefore less chance of industrial action and disgruntled employees.

 Developed analysis – a motivated workforce is likely to engage more directly with customers and provide excellent
customer service which encourages customer loyalty therefore they will continue to use this business rather than a
competitor. (2 marks  2
 Limited analysis – a motivated workforce is likely to engage more directly with customers and provides excellent
customer service which encourages customer loyalty. (1 mark  1

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Question Answer Marks

6(b) AO4 Evaluation


Eval 6 – developed judgement/conclusion is made in context (low price airline) (6 marks )
Eval 5 – developed evaluative comments given in context (low price airline) (5 marks )
Eval 4 – developed judgement/conclusion is made, not in the context of a low price airline. (4 marks )
Eval 3 – developed evaluative comments made, not in the context of a low price airline. (3 marks )
Eval 2 – judgement/conclusion is made but with little supporting evidence, again not in context. (2 marks )
Eval 1 – an attempt is made to balance arguments. (1 marks )
Eval 0 – no evaluation is attempted. (0 marks)

 It can be concluded that what motivates one employee might be different to another employee. One person might be
only motivated by money whereas another person seeks promotion or a more stimulating challenge.
 It might be concluded that highly motivated staff might be powerless to prevent angry passengers using a different
airline if flights are constantly late or unreliable.
 A judgement as to the reasons why the airline is competitive. For example, do they offer similar prices and destinations
to competitors? Is the booking system reliable? Do people use the airline because of the customer service?
 A judgement as to how important the customer experience is when customer’s main reason for using the airline is its
cheap prices.
 It might be concluded that other elements are more important such as if the airline has been marketed effectively.
 It might be concluded that the business does not have a reliable fleet of airplanes which leads to cancelled flights-
something motivated staff may have no control over.
 It might be concluded that business success can be subject to external conditions. The worldwide pandemic has had a
major impact on the airline industry.

Accept all valid responses.

© UCLES 2023 Page 32 of 32


Cambridge International AS & A Level

BUSINESS 9609/11
Paper 1 Business Concepts 1 October/November 2023

1 hour 15 minutes

You must answer on the enclosed answer booklet.


* 7 0 6 3 1 1 4 6 6 7 *

You will need: Answer booklet (enclosed)

INSTRUCTIONS
● Answer five questions in total:
Section A: answer all questions.
Section B: answer one question.
● 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 40.
● 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 (LK) 316875/1
© UCLES 2023 [Turn over
2

Section A

Answer all questions.

1 (a) Define the term labour turnover. [2]

(b) Explain one role of a workforce plan. [3]

2 (a) Define the term capital intensive. [2]

(b) Explain one benefit to a business of labour intensive operations. [3]

3 (a) Define the term margin of safety. [2]

(b) Explain one way a business can decrease its break-even level of output. [3]

4 Analyse one way that a business may be affected by a dynamic business environment. [5]

Section B

Answer one question only.

EITHER

5 (a) Analyse two advantages to a business of mass marketing. [8]

(b) Evaluate whether primary sector businesses should use product differentiation to increase
sales. [12]

OR

6 (a) Analyse two ways a business could use employee participation in the management of
business activity. [8]

(b) Evaluate whether McClelland’s three needs theory is the best way to meet employee needs
in a software business. [12]

© UCLES 2023 9609/11/O/N/23


3

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© UCLES 2023 9609/11/O/N/23


4

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Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every
reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
publisher will be pleased to make amends at the earliest possible opportunity.

To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge
Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download
at www.cambridgeinternational.org after the live examination series.

Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge
Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge.

© UCLES 2023 9609/11/O/N/23


Cambridge International AS & A Level

BUSINESS 9609/11
Paper 1 Short Answer/Essay October/November 2023
MARK SCHEME
Maximum Mark: 40

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 October/November 2023 series for most
Cambridge IGCSE, Cambridge International A and AS Level components, and some Cambridge O Level
components.

This document consists of 30 printed pages.

© UCLES 2023 [Turn over


9609 / 11 Cambridge International AS & A Level – Mark Scheme October/November 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.

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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9609 / 11 Cambridge International AS & A Level – Mark Scheme October/November 2023
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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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9609 / 11 Cambridge International AS & A Level – Mark Scheme October/November 2023
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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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9609 Business Studies – Paper 1 Annotations

Annotation Description Use

Tick Indicates a point which is relevant and rewardable.

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

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

Application Indicates where application is made to an appropriate business context.

Analysis Indicates where the answer has demonstrated analysis – questions 4, 5a, 5b, 6a and 6b.

Evaluation Indicates where the answer has demonstrated evaluation – (Section B Part (b) questions only).

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

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

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

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

Repetition Indicates where content has been repeated.

Level 1 Indicates a Level 1 point is made.

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Annotation Description Use

Level 2 Indicates a Level 2 point is made.

Level 3 Indicates a Level 3 point is made.

Off Page Used to view PE comments on Practice Scripts only – displayed at the bottom of the screen when clicking the
Comment comments button / toggle.

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Guidance on using levels–based mark schemes

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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Mark Grids for Section A

Used for Q1(a), Q2(a) and Q3(a)

Two marks in total can be awarded for these questions.

AO1 Knowledge and understanding Marks

Knowledge of the term that demonstrates a clear understanding of the 2


term.

Knowledge of the term that demonstrates a partial understanding of 1


the term.

No creditable response. 0

Used for Q1(b), Q2(b) and Q3(b)

Three marks in total can be awarded for these questions.

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 question. Limited application of one relevant point to a business context.

0 marks 0 marks
No creditable response. No creditable response.

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Question Answer Marks

1(a) Define the term labour turnover. 2

Indicative content

Responses may include:

AO1 Knowledge and understanding

Clear understanding
• percentage of a business’ workforce that leaves a business. (2)
• measure of the rate at which employees are leaving an organisation. (2)
Number of employees leaving in one year
• ( 100) (2)
Average number of people employed
• Number / amount of workers leaving a business in a specific time period (2)

Partial understanding
• Number / amount of workers leaving a business (1)

Accept all valid responses.

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Question Answer Marks

1(b) Explain one role of a workforce plan. 3

Indicative content

Responses may include:

AO1 Knowledge and understanding


Roles of a workforce plan include:
• identify skills / experience of current workforce.
• predict the number of employees needed.
• fill gaps in current workforce
• adapt the workforce.
• prevent production difficulties.
• identify training needs.
• identify costs of changes to workforce

AO2 Application
HR can recruit new employees or train existing ones to meet future production needs / business objectives.
• fill gaps in the current workforce by recruitment or training.
assess the current workforce and changes needed to adapt to changing business environment.
• organise redundancy of employees no longer needed due to change to capital intensive production or reduced
demand.
• create budget for changing / training employees to present to finance department.

Accept all valid responses.

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Question Answer Marks

2(a) Define the term capital intensive. 2

Indicative content

Responses may include:

AO1 Knowledge and understanding


Clear understanding
• involves a high quantity / proportion of machinery / equipment / technology compared with labour input / other
resources.

Partial understanding
• uses machinery / equipment / technology (1)
• involves a high quantity of machinery / equipment / technology (1)

Accept all valid responses.

2(b) Explain one benefit to a business of labour intensive operations. 3

Indicative content

Responses may include:

AO1 Knowledge and understanding


Benefits of labour intensive operations include:
• good quality / customer service.
• can be inexpensive.
• assists job production / one off items.
• skilled / flexible employees.
• motivated workforce.
• good for small businesses.

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Question Answer Marks

2(b) AO2 Application


• used in personal services e.g. hairdressing, where good customer interaction and service is needed.
• can be better at meeting customer needs and wants.
• in some countries human labour is relatively inexpensive, so costs can be minimised.
• no costly investment in machinery or maintenance / repair costs.
• better suited to job production where specialised / individually designed / one–off products are made.
• labour intensive production can be very flexible, using similar skills for many personalised / hand–crafted products.
• small business may not need high levels of production so labour intensive production is better than having large fixed
costs.

Accept all valid responses.

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Question Answer Marks

3(a) Define the term margin of safety. 2

Indicative content

Responses may include:

AO1 Knowledge and understanding


Clear understanding
• the amount / quantity by which a firm’s current level of output / sales / revenue exceeds the break–even level of
output / sales / revenue.
• current level of output / sales / revenue − break–even output / sales / revenue.
• difference between current output / sales / revenue and break-even output / sales / revenue
current level of output / sales / revenue – break-even output / sales / revenue
• margin of safety = × 100
current level of output / sales / revenue
• correct diagram with margin of safety labelled (2)

Partial understanding
• break-even output / sales / revenue (1)
• current level of output / sales / revenue (1)
• above break-even point (1)
• partially correct diagram with margin of safety shown (1)

Accept all valid responses.

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Question Answer Marks

3(b) Explain one way a business can decrease its break–even level of output. 3

Indicative content

Responses may include:

AO1 Knowledge and understanding


• Ways to decrease break–even level of output include:
• increase the price per unit.
• reduce fixed costs of business.
• reduce variable costs per unit.
• increase contribution per unit.

AO2 Application
• increases revenue per unit, especially if demand is price inelastic – shown as revenue line being steeper.
• can add value and / or increase promotion to increase price.
• cheaper fixed costs e.g. premises / utilities – reduces total costs – shown by fixed costs line being lower.
• variable costs reduced e.g. cheaper inputs / components / materials / backward vertical integration – reduces total costs
– shown as variable costs line being less steep.
• the break–even point is achieved with less units produced.
• relevant calculation(s).
• relevant diagram(s).

Accept all valid responses.

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Question Answer Marks

4 Analyse one way that a business may be affected by a dynamic business environment. 5

Indicative content

Responses may include:

AO1 Knowledge and understanding


Effects of a dynamic business environment include:
• increased / decreased demand.
• increased / decreased costs.
• increased / decreased revenue.
• increased / decreased profit.
• increased / decreased competition.
• increased / decreased market share.
• increased uncertainty / instability.

AO2 Application
• changing customer needs for products.
• technology advances / production possibilities.
• government policy e.g. treatment of employees, type of product, ethical behaviour.
• competitor actions e.g. pricing / promotion / product development.
• external environment – inflation, interest rates.
• difficult to forecast future inventory needs.
• must change and adapt.

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Question Answer Marks

4 AO3 Analysis
• changing customer needs might affect demand leading to innovation, product development, extension strategies and
altering production.
• regular market research needed to adapt to changing demand therefore increasing costs and possibly profit.
• technological changes e.g. availability and speed of the internet can make it easier to find suppliers and sell across the
world.
• new policies can change business behaviour which may alter objectives and production methods.
• economic conditions affect spending power and choice of products chosen e.g. needs vs luxuries / cheap vs expensive.
• increase or decrease in competition may alter pricing strategy and therefore profit.
• managers will need to change some of their decisions about inputs, the transformation process or the outputs they
produce.
• they might switch production to another country; become more capital intensive; sell products to other countries.
• changes may have cost implications for the business and affect revenue and profits.

Accept all valid responses.

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Question Answer Marks

5(a) Analyse two advantages to a business of mass marketing. 8

Indicative content

Responses may include:

AO1 Knowledge and understanding


Advantages of mass marketing include:
• reduces risk.
• large customer base.
• little price discrimination.
• no need for product differentiation.
• little market research.
• no targeted advertising.
• brand easily recognised.
• can use flow production methods.
• economies of scale.

AO2 Application
• one product or a limited range is supplied to the whole market e.g. rice.
• little or no differentiation e.g. bottled water.
• example e.g. Coca–Cola with large customer base.

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Question Answer Marks

5(a) AO3 Analysis


• reduces the risk of failure if product is guaranteed to remain necessary / popular – more chance of business success.
• large number of customers wanting a standardised product at low price so no need to consider different pricing
methods.
• mass market means high total sales and high revenue even with a lower price.
• gain cost leadership over smaller businesses and can set lower prices.
• usually leads to high profits even if profit margins are low.
• little product development reduces spending on R and D.
• requires little market research if market is stable – saves money and time.
• advertising is not targeted so can use expensive but wide–coverage methods – gives marketing economies of scale.
• strong brand creates barrier to entry for smaller businesses and keeps market share high / allows high prices.
• flow production usually capital intensive which can be cheaper in long run than labour intensive operations.
• high volumes of production lead to lower unit costs due economies of scale – this leads to a lower price for consumers.

Accept all valid responses.

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Question Answer Marks

5(b) Evaluate whether primary sector businesses should use product differentiation to increase sales. 12

Indicative content

Responses may include:

AO1 Knowledge and understanding


• product differentiation is making a product distinctive so that it stands out from competitors’ products in consumers’
perception.
• product differentiation could be achieved by branding, product design, ease of use, USP.
Do not reward selling different products e.g. wheat and tomatoes.

AO2 Application
• primary sector business is one which extracts natural resources / raw materials.
• primary sector products are used and processed by other firms e.g. strawberries / milk to yoghurt manufacturer.
• primary sector business examples could be fishing, mining, farming, oil extraction, logging businesses.
• primary sector products could be coffee, wheat, coal, wood.

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Question Answer Marks

5(b) AO3 Analysis


• primary sector products are often commodities and are a standardised product sold in mass markets.
• they can get high sales without product differentiation.
• large businesses can dominate the market and gain economies of scale.
• they can set low prices and gain high sales without product differentiation.
• product differentiation can attract consumers to small businesses e.g. locally produced thereby increasing sales.
• ethical sourcing may be important to consumers e.g. organic or fair trade, sustainable (plant a tree) or produced by
social enterprises and these customers will buy from ethical businesses rather than cheaper ones, increasing sales.
• mining companies can differentiate themselves and therefore the products that they sell by their attitude to human
rights.
• differentiation of a primary sector product is more likely to be carried out by a manufacturer or retailer e.g. tinned tuna
or line caught, own brand vs well–known brand, rather than the primary sector business.
• could secure customer loyalty from secondary businesses e.g. reliable supply, better reputation, quality produce.
• improvements in technology allow all year round growing of seasonal crops to increase availability – can be a USP.
• need market research, possibly primary to find out how best to differentiate – costly.

AO4 Evaluation

Developed evaluation in Developed / Supported judgement in context 6 marks


context:
Developed evaluation in Developed / Reasonable evaluative comments in 5 marks
context: context
Developed evaluation not Developed / Supported judgement without context 4 marks
in context:
Developed evaluation not Developed / Reasonable evaluative comments without 3 marks
in context: context
Limited evaluation not in Limited supported judgement 2 marks
context:
Limited evaluation not in An attempt to balance the arguments / Weak attempt at 1 mark
context: evaluative comments

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Question Answer Marks

5(b) A judgment / conclusion is made as to whether primary sector businesses should use product differentiation to increase
sales.

These judgements / conclusions may be made at any point in the essay, not only in a concluding section.
• might seem difficult to differentiate a primary / commodity product as it is the same wherever it has been sourced. With
no obvious differentiation is it possible for a primary sector business to create an artificial differentiation?
• primary sector businesses may compete internationally and the business with the lowest price will make the most
sales. If there is a trade–off between costs, price, quality and ethics what should a primary sector business focus on?
To what extent are the customers attracted by cheap products?
• will the business which can produce at the lowest unit costs and keep its prices lower than competitors achieve price
differentiation and greater sales? Will price differentiation favour large businesses, therefore making product
differentiation more important to smaller businesses?
• to what extent do customers actively seek ethical / locally sourced / organic products? Will a business with a strong
corporate social responsibility objective differentiate itself and make higher sales even when charging a higher price?
Can this USP be used equally well by large and small businesses? Will it be more necessary to a smaller producer
which cannot compete with low prices? Will it depend on whether a niche market exists and is worth targeting?
• is branding of primary products more easily achieved by manufacturers or retailers? Is it worthwhile for primary sector
businesses to spend money on establishing a brand and marketing it? Will this depend on the product and size of the
business? Is a large business more likely to have a large product portfolio and therefore use its branding on any
primary sector businesses it owns?
• to what extent is marketing the main source of the differentiation? How easily can marketing be adjusted to suit the
product and the target market?
• how can quality of the product best be used as a differentiating factor and how may it be achieved e.g. by operating in
different countries or using different extraction / growing methods? Will quality always matter to customers? Will
increased quality always guarantee that sales will increase for those businesses which achieve it better than
competitors? Will improved quality always mean that the price can be increased and sales revenue may increase?

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Question Answer Marks

5(b) • in all cases the type of product differentiation will appeal to certain target customers. Whether it is price, quality,
location, brand, ethicality, it will appeal to customers looking for that type of differentiation.
• whether differentiation increases sales depends on whether sales are measured in volume or value. Low price appeal
in a mass market is more likely to increase sales volume. Differentiation via any type of quality will allow a higher price
and sales revenue may increase even though sales volume may be relatively low.
• the success of any differentiation strategy is due to the primary business identifying what attracts the customer to buy
their product rather than an identical one sourced by a different primary sector business.

Accept all valid responses.

Question Answer Marks

6(a) Analyse two ways a business could use employee participation in the management of business activity. 8

Indicative content

Responses may include:

AO1 Knowledge and understanding


• gain ideas about job / business / opinions.
• assist decision–making.
• increase motivation.
• reduce employee dissatisfaction.
• incorporate into organisation structure.

Some candidates have reversed K and APP – this is acceptable.

AO2 Application
• examples of use of type(s) of employee participation in business contexts – meetings, quality circles, work councils,
worker directors, autonomous work groups, laissez faire / democratic management.
• might not name specific methods of participation but describe how they work.

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Question Answer Marks

6(a) Some candidates have reversed K and APP – this is acceptable.

AO3 Analysis
• taking part in meetings where the contribution of employees, their proposals and result of being allowed to take part in
voting can influence the objectives and activities of the business.
• to operate well, employee participation may need a laissez faire style of management. This gives employees the ability
to manage their own working practices and is a motivating factor.
• motivated employees are more likely to benefit the business in many ways. Employee participation is seen to some
extent in all the motivation theories, satisfying higher needs of self–esteem and self–actualisation.
• however, the management of business activities is often considered to be the role of senior managers and leaders
within a business. It may be difficult for them to relinquish some of their responsibilities to suitably experienced and
qualified employees.
• works councils – managers and employees meet to discuss issues such as working conditions, pay and training.
Employee representatives are elected by the workforce and may be appointed to the Board of Directors. Employee
concerns are raised and solutions are likely to be acceptable to employees.
• worker directors – can influence decision–making. Will seek actions to benefit employees and prolong decision–
making. In reality little notice may be taken of the worker director.
• employee shareholders – employees can buy shares in the company, often at discounted rates. Because employee
shareholders have a financial interest in the business’ performance, their motivation levels and performance may
improve. If the business performs well, its share prices should increase, giving financial benefits to the employee.
• quality circles – groups of workers who meet regularly to identify methods of improving all aspects of the quality of their
work. They normally involve employees drawn from all levels within the organisation and focus on supplying
imaginative ideas. Their decisions can improve the production of the business as well as motivating them.
• autonomous work groups – teams of employees who are given a high level of control over their working lives (a form of
empowerment). Some groups elect their own leaders and can appoint new staff, as well as having considerable
authority over what tasks to complete and in what sequence. Those employees doing the job are often in a better
position to make appropriate decisions than senior managers.

Positives and / or negatives are acceptable for analysis.

Accept all valid responses.

© UCLES 2023 Page 24 of 30


9609 / 11 Cambridge International AS & A Level – Mark Scheme October/November 2023
PUBLISHED
Question Answer Marks

6(b) Evaluate whether McClelland’s three needs theory is the best way to meet employee needs in a software business. 12

Indicative content

Responses may include:

AO1 Knowledge and understanding


• McClelland – three needs theory – achievement motivation, authority / power motivation, affiliation motivation.

AO2 Application
• examples given of suitable application – software, video games, research, technology, quaternary sector.
• examples given of the different types of employees within a software business e.g. app developer, programmer,
website developer, game developer, coding, data scientist.
• example of a software business e.g. Apple, Microsoft.

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9609 / 11 Cambridge International AS & A Level – Mark Scheme October/November 2023
PUBLISHED
Question Answer Marks

6(b) AO3 Analysis


• Achievement motivation – employees aim for excellence. Likely to avoid low–risk situations with unchallenging targets.
Likely to avoid high–risk situations as they fear not achieving.
• Achievement motivation – employees need realistic but challenging goals. Should be given tasks which are demanding
but achievable. Need regular positive feedback on achievement and progress to meet their need for accomplishment.
• Authority / power motivation – employees need personal power – to direct or control other employees.
• Authority / power motivation – employees need institutional power – to organise other employees, to have control and
status, to influence the business’ objectives.
• Authority / power motivation – employees can be given supervision / control of other workers by promotion to higher
position e.g. manager. A strong need for authority may lead to an autocratic leadership style.
A junior employee could be given a supervisory role, while more senior employee may manage a large team of
employees.
• Affiliation motivation – employees need good relationships and social interaction with other employees. They need to
feel accepted and are motivated to work with other people.
• Affiliation motivation – employees should be employed as a member of a team.
• McClelland believed that these three needs exist, to differing extents, in all employees, regardless of their role or status
within the business.
• the combination of these three needs determines: each employee’s behaviour in terms of what motivates them; how
they manage and motivate other employees.
• McClelland’s theory of needs has implications for leaders and managers. They must treat each employee as an
individual as each employee may require different roles and tasks to meet their individual needs.
• reward comments regarding the overlap between McClelland’s theory and others. Motivation theorists show a range of
employee needs, some of which overlap.
• Taylor – money for basic needs. Mayo – social needs. Maslow’s hierarchy of needs – physiological, security, social,
self–esteem, self–actualisation. Herzberg – two factor theory of hygiene factors and motivators, meeting the needs
above.
These theories can also be used to influence the motivation of employees once McClelland’s theory has been applied.

Accept all valid responses.

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9609 / 11 Cambridge International AS & A Level – Mark Scheme October/November 2023
PUBLISHED
Question Answer Marks

6(b) AO4 Evaluation

Developed evaluation in Developed / Supported judgement in context 6 marks


context:

Developed evaluation in Developed / Reasonable evaluative comments in 5 marks


context: context

Developed evaluation not Developed / Supported judgement without context 4 marks


in context:

Developed evaluation not Developed / Reasonable evaluative comments without 3 marks


in context: context

Limited supported Limited supported judgement 2 marks


judgement

Limited supported An attempt to balance the arguments / Weak attempt at 1 mark


judgement evaluative comments

© UCLES 2023 Page 27 of 30


9609 / 11 Cambridge International AS & A Level – Mark Scheme October/November 2023
PUBLISHED
Question Answer Marks

6(b) A judgment / conclusion is made as to whether McClelland’s three needs theory is the best way to meet employee needs in
a software business.

These judgements / conclusions may be made at any point in the essay, not only in a concluding section.
• evaluative comments may compare the usefulness of McClelland’s theory with that of other theorists.
• how easy is it to identify the relative strength of the three needs in McClelland’s theory in all employees? Will this
involve specialist designed questionnaires which can be expensive and time consuming to carry out by the HRM
function?
• it depends on the individual needs of the employees which are influenced by their experience, current status and
ambitions.
• can the business act on what it finds by using appropriate methods, maybe those shown in other theories?
• it depends on the types of leaders / managers in the business as to how well they recognise and are willing / able to
meet these needs.
• it depends on the type of business being considered and the types of employees within it.
• a judgment will be made relating to the employees in a software business e.g. there may be many types of employees
e.g. web developer, computer programmer, database administrator, software designer. Employees in the functions of
marketing, finance, production and human resources may have very different needs to those in the technical and
creative roles.

Accept all valid responses.

© UCLES 2023 Page 28 of 30


9609 / 11 Cambridge International AS & A Level – Mark Scheme October/November 2023
PUBLISHED
Mark Grids for Section B

Used for Q5(a) and Q6(a)

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

0 0 marks 0 marks 0 marks


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

© UCLES 2023 Page 29 of 30


9609 / 11 Cambridge International AS & A Level – Mark Scheme October/November 2023
PUBLISHED
Mark Grids for Section B

Used for Q5(b) and Q6(b)

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

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

0 0 marks 0 marks 0 marks 0 marks


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

© UCLES 2023 Page 30 of 30


Cambridge International AS & A Level

BUSINESS 9609/12
Paper 1 Business Concepts 1 October/November 2023

1 hour 15 minutes

You must answer on the enclosed answer booklet.


* 7 1 1 6 4 7 5 6 9 2 *

You will need: Answer booklet (enclosed)

INSTRUCTIONS
● Answer five questions in total:
Section A: answer all questions.
Section B: answer one question.
● 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 40.
● 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 (CE) 316876/1
© UCLES 2023 [Turn over
2

Section A

Answer all questions.

1 (a) Define the term job description. [2]

(b) Explain one advantage to an employer of using a person specification. [3]

2 (a) Define the term business enterprise. [2]

(b) Explain one reason why a business might fail. [3]

3 (a) Define the term bankruptcy. [2]

(b) Explain one advantage of using retained earnings as a source of finance. [3]

4 Analyse one way a business might improve the efficiency of its operations. [5]

Section B

Answer one question only.

EITHER

5 (a) Analyse two methods that a business could use to help employees satisfy their self-
actualisation needs, as defined by Maslow. [8]

(b) Evaluate whether an ability to motivate others is the most important role of a hotel manager.
[12]

OR

6 (a) Analyse two reasons why there should be a close link between the marketing objectives of a
business and its corporate objectives. [8]

(b) ‘This new airline will only succeed if it offers the lowest prices in the market’.

Evaluate this view. [12]

© UCLES 2023 9609/12/O/N/23


3

BLANK PAGE

© UCLES 2023 9609/12/O/N/23


4

BLANK PAGE

Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every
reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
publisher will be pleased to make amends at the earliest possible opportunity.

To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge
Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download
at www.cambridgeinternational.org after the live examination series.

Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge
Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge.

© UCLES 2023 9609/12/O/N/23


Cambridge International AS & A Level

BUSINESS 9609/12
Paper 1 Business Concepts 1 May/June 2023
MARK SCHEME
Maximum Mark: 40

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 32 printed pages.

© UCLES 2023 [Turn over


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 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.

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.

© UCLES 2023 Page 2 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2023
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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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9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2023
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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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9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2023
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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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9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
Guidance on using levels-based mark schemes

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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Annotations and their Use

Annotation Use

 As an indication of relevant and rewardable content. Better to put these in the body of the answer.

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

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

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

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

APP Indicates that there is specific application to the context of the question.

AN Indicates where the answer has demonstrated analysis.

EVAL Indicates where the answer has demonstrated evaluation.

REP This indicates where content has been repeated.

SEEN Indicates that content has been recognised but not rewarded.

L1, L2, L3 Indicates where the answer reaches the required standard.

1, 2, 3, 4, 5, 6 Indicates the number of K, APP, AN and EVAL marks awarded.

© UCLES 2023 Page 7 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
Question Answer Marks

1(a) Define the term demand. 2

AO1 Knowledge and understanding Marks

Knowledge of the term that demonstrates a clear understanding of the term. 2

Knowledge of the term that demonstrates a partial understanding of the term. 1

No creditable response. 0

Indicative content

Responses may include:

AO1 Knowledge and understanding

 Demand is the quantity of a product that customers are able/willing to buy at a given price (in a specific period of time).
Clear understanding (2 marks  2)
 The quantity that customers are able/willing/want to buy. Partial understanding (1 mark  1)

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9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2023
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Question Answer Marks

1(b) Explain one factor that influences the supply of a product. 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

Responses may include:

AO1 Knowledge and understanding


 Price
 Cost of production
 Natural conditions
 Transport
 Government action
 New technology
 International incidents
 Level of demand

One factor that influences the supply of a product is the price the product commands in the market (1 mark  1)

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9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2023
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Question Answer Marks

1(b) AO2 Application


The influencing factors affecting the supply of a product are considered to include the following:
 Price variations – supply likely to increase as product price rises and fall as product price falls.
 Speculative prices – anticipated future price rises may reduce current supplies.
 Cost of production – as costs rise supplies may reduce-as costs fall supplies may increase.
 Changes in natural conditions – Weather, seasons, holidays, disasters, droughts, monsoons may reduce supply.
 Transport – constraints, lack of lorry drivers may interrupt supplies.
 Government action – taxes on products may reduce supply – subsidies may increase supply.
 New technology – may lead to greater efficiency – lower costs and increased supply.
 Foreign Government actions/interventions affecting the supply chain – new trade restrictions.
 International incidents – wars that affect the supply chain.
 Level of demand – business will produce and supply more if the demand increases.
 Increased demand reduces stock availability – supply will decrease.

 Developed application of one factor – the price variations of a product – the supply is likely to increase as the price of
the product rises in the market and falls as the price of the product falls in the market. (2 marks  2)
 Limited application of one factor – fluctuations in the price of a product in the market will affect the supply of that
product. (1 mark  1)

Accept all valid responses.

© UCLES 2023 Page 10 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
Question Answer Marks

2(a) Define the term factors of production. 2

AO1 Knowledge and understanding

Knowledge of the term that demonstrates a clear understanding of the term. 2

Knowledge of the term that demonstrates a partial understanding of the term. 1

No creditable response. 0

Indicative content

Responses may include:

AO1 Knowledge and understanding


 Factors of production are inputs available and needed to supply goods and services
 Four/five factors – land, labour, capital, entrepreneurship (enterprise) – knowledge often considered a factor.

 The resources available and required to produce goods and services. (Clear definition 2 marks  2)
 Resources such as land or labour or capital. (Partial definition – 1 mark  1)

Accept all valid responses.

© UCLES 2023 Page 11 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2023
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Question Answer Marks

2(b) Explain one stage of the transformational process. 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

Responses may include:

AO1 Knowledge and understanding


Understanding of one of the stages of the transformational process. This does not have to be specifically named.
Stages in the transformational process include the following:
 input stage
 transforming stage
 output stage

 One stage of the transformational process is the input stage. (1 mark )

AO2 Application
 Input stage — select raw materials – steel/plastic/cotton/coffee beans/milk
 Transformative stage – use steel/plastic to produce a car – use milk to produce butter/cheese – when resources are
used/processed to form a different output

© UCLES 2023 Page 12 of 32


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Question Answer Marks

2(b)  Transformative stage – in a hospital change ill patients into healthy people
 Output stage – add value to raw materials by changing characteristics to outputs that consumers value – education
process that transforms an unqualified person into a valuable asset – young person into a medical practitioner.

 Developed application of one stage is to take raw materials such as milk, transform into a different product such as
butter or cheese, adding value with this new product. (2 marks  2)
 Limited application of one stage of the transformation process is the process that educates a person who has few
qualifications. (1 mark  1)

Accept all valid responses.

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Question Answer Marks

3(a) Define the term equality. 2

AO1 Knowledge and understanding

Knowledge of the term that demonstrates a clear understanding of the term. 2

Knowledge of the term that demonstrates a partial understanding of the term. 1

No creditable response. 0

Indicative content

Responses may include:

AO1 Knowledge and understanding


 Equality – processes designed to achieve a fair organisation, where all are treated in the same way regardless of
gender, race, religion, disability, age, sexual orientation
 There is no discrimination/bias and all have equal value
 Where all are treated in the same way – regardless of gender, race, disability, age, religion, sexual orientation

 There is equality in an organisation/business where all are treated in the same way e.g. there is no discrimination/
bias. (Clear definition – 2 marks  2)
 Equality is where everyone in a business receives equal treatment. (Partial definition – 1 mark  1)

Accept all valid responses.

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Question Answer Marks

3(b) Explain one benefit to a business of employing a diverse workforce. 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

Responses may include:

AO1 Knowledge and understanding


 Creativity
 More ideas
 Greater range of skills
 Diverse views
 Inclusive culture
 Attractive work environment
 Diverse workforce

 One benefit to a business of employing a diverse workforce is that employees experience a positive, inclusive work
environment with no discrimination. (1 mark )

© UCLES 2023 Page 15 of 32


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Question Answer Marks

3(b) AO2 Application


Benefits of a diverse workforce:
 Creativity – many different perspectives
 More ideas – more experiences – more options identified
 Greater range of skills – lead to better decisions – problems solved – faster decisions
 Diverse views – better working environment – potential for increased productivity
 Inclusive culture – all feel able to participate
 Attractive work environment – labour turnover and absenteeism reduced
 Diverse workforce – may be attractive to customers – strengthen brand and reputation

 Developed application of one benefit to a business is that creativity and a wide range of ideas is encouraged which
likely leads to more creative solutions to more efficient process of production. (2 marks  2)
 Limited application of one benefit to a business is that potential solutions to problems are offered. 1 mark  1)

Accept all valid responses.

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Question Answer Marks

4 Analyse one way in which conflict between stakeholders may affect a business. 5

Level AO1 Knowledge and AO2 Application AO3 Analysis


understanding 2 marks 2 marks
1 mark
2 2 marks 2 marks
Developed application of one Developed analysis that identifies
relevant point to a business connections between causes, impacts and/or
context. consequences of one relevant point.
1 1 mark 1 mark 1 mark
Knowledge of one Limited application of one Limited analysis that identifies connections
relevant point is used to relevant point to a business between causes, impacts and/or
answer the question. context. consequences of one relevant point.
0 0 marks 0 marks 0 marks
No creditable response. No creditable response. No creditable response.

Indicative content

Responses may include:

NOTE: Stakeholder conflict may be between different stakeholder groups e.g. managers and shareholders, or
between members of the same stakeholder group e.g. employee vs employee.

AO1 Knowledge and understanding


Conflict may affect a business in the following ways:
 Demotivated workers
 Reduced profit
 Slow decisions
 Industrial action
 Damage to reputation
 Conflicting objectives

 Conflict between different stakeholders may lead to industrial action. (1 mark  1)


© UCLES 2023 Page 17 of 32
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Question Answer Marks

4 AO2 Application
 Different stakeholders in a business may have different expectations – resulting in conflict – management want to
invest in more capital equipment – workers fear for their jobs.
 Different stakeholders may require a business to operate in different ways – employees will focus on wages/salaries
and working conditions while directors may favour higher dividends to attract more investment.
 Potential for conflict is real – so many stakeholders internal and external with different agendas.

 Developed application – managers may wish to automate production in search of a more efficient process of
production – employees/workers may fear for their jobs and be less motivated. (2 marks x 2)
 Limited application – workers may strike in order to preserve their jobs. (1 mark x 1)

AO3 Analysis

 Shareholders – will focus on bottom line – short-term profits – conflict with long term planning concerns of senior
management.
 Core business purpose – some stakeholders such as government, community, overseas workers may seek to have
CSR as a business objective – other stakeholders will be concerned at the cost – shareholders concerned at a drift
from commercial considerations – the business of business should be business not social support.
 Conflict between employees and owners/managers – aim of management is to contain cost increases arising from
increase wages/salaries – workers and unions threaten strike.
 Local community may object to business decisions – new factory – impact on the local environment.
 Customers want lower prices – impact on quality of product as viewed by the business.
 Government increases taxes on businesses/employees – business does not absorb the tax, puts up prices and
customers become critical and threaten to switch to other providers.

 Developed analysis – shareholders will likely focus on the bottom line in pursuit of profits and dividends which may
have consequences for long term business planning for a business that requires to build up internal financial resources
for growth investment. Shareholders will likely oppose proposals for more retained earnings. (2 marks L2)
 Limited analysis – shareholders will likely only focus on the bottom line and seek profit maximisation regardless of the
effect on other stakeholders. (1 mark L1)

Accept all valid responses.

© UCLES 2023 Page 18 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
Question Answer Marks

5(a) Analyse two benefits to a business of government grants as a source of finance. 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.
 Developed analysis that identifies connections
between causes, impacts and/or consequences of
one point.

1 1–2 marks 1–2 marks 1–2 marks


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

0 0 marks 0 marks 0 marks


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

2 marks for
2 marks for
4 marks for

© UCLES 2023 Page 19 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
Question Answer Marks

5(a) Indicative content

Responses may include:

AO1 Knowledge and understanding


Benefits of government grants/subsidies include:
 Flexibility
 Focused direction
 Fill a gap in finance availability
 Do not have to be paid back
 Provides finance where none other available

 Government grants/subsidies often do not need to be paid back. (1 mark  1)


 Government grants/subsidies are often the only source of finances available to a business. (1 mark  1)

AO2 Application
 Business activity – stimulated by award of government grants
 Critical source of finance – many businesses struggle to raise finance
 Private sector — may be unwilling to provide finance to businesses.

 Government grants/subsidies do not add to the debt burden of the business. (1 mark  1)
 They do not normally need to be paid back – regarded as ‘free money’. (1 mark  1)
 The business may not qualify for a bank loan. (1 mark  1)

AO3 Analysis
Government grants/subsidies
 can stimulate an economy/business create jobs allow a business to grow/survive
 can stimulate investment in new technology robotics – increase business efficiency
 can kickstart and develop new business – strengthen business enterprise
 can provide finance when other sources not available – where private sector will not provide
 may mean a business does not have to rely on banks, loans, share issues, venture capital
 prevents business having to surrender equity or control.

© UCLES 2023 Page 20 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
Question Answer Marks

5(a) There are 4 marks for Analysis in this question. Possible 2 analysis marks for an identified and applied first
benefit and 2 marks for 2 possible analysis marks for an identified and applied second benefit. The examples
below indicate how the 2 analysis marks should be allocated to each benefit.

Benefit 1 – assuming that this benefit is ‘Government grants are often the only source of finances available to a business.
.’ The application might be ‘The business may not qualify for a bank loan.’ .
Then the 2 analysis marks should be allocated in the following way:
If the analysis of this benefit is developed analysis, e.g. – ‘This may mean a business does not have to rely on banks,
loans, share issues, venture capital, and as a result the business does not have to surrender equity or control.’ then 2
analysis marks should be awarded.
If the analysis of this benefit is limited analysis – ‘This may mean a business does not have to rely on banks, loans, share
issues, venture capital’ then 1 analysis mark should be awarded.

Benefit 2 – assuming that this benefit is ‘Government grants often do not need to be paid back . The application might
be ‘They can be regarded as ‘free money’ given by the government,’ .
Then the 2 analysis marks should be allocated in the following way:
If the analysis of this benefit is developed analysis – ‘Government grants, unlike other sources of finance such as loans do
not have to be paid back with interest. Therefore, the debt burden of the business is not increased.’ then 2 analysis
marks should be awarded.
If the analysis of this benefit is limited analysis – ‘Government grants, unlike other sources of finance such as loans do not
have to be paid back with interest.’ then 1 analysis mark should be awarded.

Accept all valid responses.

© UCLES 2023 Page 21 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
Question Answer Marks

5(b) Evaluate whether the most likely reason for the failure of a small retailer is poor management of its working 12
capital.

Level AO1 Knowledge AO2 Application AO3 Analysis AO4 Evaluation


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

1 1 mark 1 mark 1 mark 1–2 marks


Limited knowledge Limited application Limited analysis Limited evaluation
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.

0 0 marks 0 marks 0 marks 0 marks


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

© UCLES 2023 Page 22 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
Question Answer Marks

5(b) 2 marks for


2 marks for
2 marks for
6 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


 Business failure is when a business ceases operations because of inability to bring in enough revenue to cover costs.
 Small businesses often have few employees, low start-up costs but low revenue and small profits, serve a small
market area, sole or partnership ownership or small private company, suffer poor working capital.
 Small businesses are often high-risk businesses, have defective business models, poor management, fail in early
months.
 Working capital is a measure of the liquidity/financial health of a business, the difference between the current assets
(cash receivables, unpaid accounts and inventories) and current liabilities (accounts payable and debts).

 Developed knowledge of reasons for failure of a small business – small businesses have limited resources, especially
in relation to short term cash/working capital – they are also susceptible to slow payment of goods supplied – not
enough attention is paid to managing working capital – other reasons for failure may include lack of profitability. (2
marks L2)
 Limited knowledge of reasons for failure of a small business – small businesses pay insufficient attention to cash flow
forecasting. (1 mark L1)

AO2 Application
 Application of any points which apply to a small retail business e.g. customer service, home delivery, after-sales
service, merchandising, providing credit (even if these may also apply to other businesses.) It is important that the
answer does not refer specifically to production/manufacturing.
 Application could refer to specific types of small retail shops.

 Developed application – a poor business model may mean that a small clothes shop pays insufficient attention to
managing its working capital – payment to the suppliers of clothes may be delayed or the wrong market is targeted
e.g. coats sold in summer. (2 marks L2)

© UCLES 2023 Page 23 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
Question Answer Marks

5(b)  Limited application – small clothes shop pays insufficient attention to cash flow forecasting e.g. different clothes sold at
different times of the year. (1 mark L1)

AO3 Analysis
Reasons for failure of small businesses include the following:
 Business model is defective — lack of market research
 Management is inadequate – poor multi-skilling – poor entrepreneurial skills
 Marketing is inadequate — limited resources for effective marketing activities
 Capital/funding — limited and likely inadequate to respond to market changes
 Customer/fashion changes — small niche businesses have very small product portfolio
 Working capital management is poor — fails to provide sufficient capital to fund current operations (payment to
employees, suppliers, other fixed and variable expenses) and fund future growth.
 Poor working capital management — can lead to insolvency.

 Developed analysis – the working capital of a small retailer is inadequate. Late payments are made to suppliers
resulting in business relationships breaking down, as suppliers lose confidence in a business. Supplies may be
stopped, meaning that a business is unable to trade. (2 marks L2)
 Limited analysis – the working capital of a business is inadequate as the business becomes illiquid and unable to
purchase supplies. (1 mark L1)

AO4 Evaluation
 Eval 6 – developed judgement/conclusion is made in context (e.g. small clothes shop) (6 marks L3)
 Eval 5 – developed evaluative comments given in context (e.g. small clothes shop) (5 marks L3)
 Eval 4 – developed judgement/conclusion is made, not in the context of a small retailer. (4 marks L2)
 Eval 3 – developed evaluative comments made, not in the context of a small retailer. (3 marks L2)
 Eval 2 – judgement/conclusion is made but with little supporting evidence, again not in context. (2 marks L1)
 Eval 1 – an attempt is made to balance arguments. (1 marks L1)
 Eval 0 – no evaluation is attempted (0 marks)

© UCLES 2023 Page 24 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
Question Answer Marks

5(b)  A judgement/decision is made as to whether poor management of working capital is the most likely reason for
business failure.
 Such judgements/decisions may be made at any point in the essay, not just in a concluding section.
 Judgement is made that running out of cash due to poor working capital management is likely to be the prime reason
for business failure for a small retailer – a disconnect between revenue generated and funds needed – lack of attention
to managing cash is critical.
 Judgement is made that there may well be other reasons for the failure of a small retailer, such as inexperience, poor
management team, flawed business model, overall lack of funding and unsuccessful marketing – not as significant as
poor working capital management.
 Judgement is made that for a small retailer it may depend on the types of products sold by the retailer – if it is a
clothing retailer and the clothes are luxury/designer items, then there may well be severe pressures on working capital
– the location, décor of the shop, and the necessity to hold stock in different sizes may mean high costs and
competition may be intense.

Accept all valid responses.

© UCLES 2023 Page 25 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
Question Answer Marks

6(a) Analyse two benefits to a business of having a product with a unique selling point (USP). 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.
 Developed analysis that identifies connections
between causes, impacts and/or consequences of
one point.

1 1–2 marks 1–2 marks 1–2 marks


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

0 0 marks 0 marks 0 marks


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

2 marks for
2 marks for
4 marks for

© UCLES 2023 Page 26 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
Question Answer Marks

6(a) Indicative content

Responses may include:

AO1 Knowledge and understanding


 Clear differentiation
 Defeat competition
 Consumers attracted
 Command premium prices
 Brand loyalty
 Increased sales

 One benefit of USP is that it gives a product a distinctive position in a marketplace (1 mark  1)
 Another benefit is that a USP allows a business to command premium prices in the marketplace. (1 mark  1)

AO2 Application
The benefits include:
 Clear differentiation – separates the product from the competition
 Consumers attracted – value the unique proposition
 Customers – will likely resist alternative offers
 May command premium prices, charging more than competitors
 Easier to market and sell due to customer loyalty.

 A USP presents a unique proposition to the customer in the marketplace superior to the competition. (1 mark  1)
 It can give a product added value in the eyes of the customer. (1 mark  1)

AO3 Analysis
 A USP product – customers compelled to give the product attention – the differentiating factor(s) may move
competitors to compete with lower price
 Consumers value the USP product – unique product features quality, style, service – convince customers to select the
product
 Consumers – view the USP as evidence of quality and reputation of the business and become repeat loyal customers.
 Consumers convinced by the USP – may be willing to pay a premium price – increases business profits
 USP products – easier to market and may enrich the brand and support other products in the business.

© UCLES 2023 Page 27 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
Question Answer Marks

6(a) There are 4 marks for Analysis in this question. Possible 2 analysis marks for an identified and applied first
benefit and 2 marks for 2 possible analysis marks for an identified and applied second benefit. The examples
below indicate how the 2 analysis marks should be allocated to each benefit.

Benefit 1 – assuming that this benefit is ‘A USP presents a unique proposition to the customer.’
The application might be ‘It gives a product a distinctive position in a marketplace.’ .
Then the 2 analysis marks should be allocated in the following way:
If the analysis of this benefit is developed analysis, e.g. – ‘The USP offers something special that attracts customers and
consequently boosts sales, which may lead to the business increasing its market share and likely increasing its level of
profitability.’ then 2 analysis marks should be awarded.
If the analysis of this benefit is limited analysis, – ‘‘‘The USP offers something special that attracts customers and
consequently boosts sales.’ then 1 analysis mark should be awarded.

Benefit 2 – assuming that this benefit is ‘A USP allows a business to command premium prices in the marketplace. .
The application might be ‘It can give a product added value in the eyes of the customer,’ .
Then the 2 analysis marks should be allocated in the following way:
If the analysis of this benefit is developed analysis – ‘therefore the customer will be prepared to pay more for this USP
product than a similar one provided by the competition,’ ‘and this willingness to pay a premium price is likely to increase
the profitability of the business.’ then 2 analysis marks should be awarded.
If the analysis of this benefit is limited analysis – ‘therefore the customer will be prepared to pay more for this USP product
than a similar one provided by the competition,’ then 1 analysis mark should be awarded.

Accept all valid responses.

© UCLES 2023 Page 28 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
Question Answer Marks

6(b) ‘Marketing is the most important factor that will affect the success of a new coffee shop’. Evaluate this view. 12

Level AO1 Knowledge AO2 Application AO3 Analysis AO4 Evaluation


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

1 1 mark 1 mark 1 mark 1–2 marks


Limited knowledge Limited application Limited analysis Limited evaluation
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.

0 0 marks 0 marks 0 marks 0 marks


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

© UCLES 2023 Page 29 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
Question Answer Marks

6(b) 2 marks for


2 marks for
2 marks for
6 marks for

Indicative content

Responses may include:

AO1 Knowledge and understanding


 Marketing is the management task that links a business to its customers by identifying and meeting the needs of
customers through a range of activities such as the 4Ps – product, price, promotion, place.
 Business success is considered to be determined by a number of factors such as quality of business management,
degree of effective financial management, effectiveness of marketing and sales, employee experience and system and
process effectiveness.
 New business characteristics may include – small number of owners and employees, small footfall, limited product
range, small investment required, potential high profit margin, vulnerable to all the challenges of a small business.

 Developed knowledge why marketing is a factor affecting business success – marketing identifies and meets the
needs of customers operating through the 4Ps and sets appropriate prices, determines effective advertising and sales
targets – other factors include quality of management, adequacy of finance. (2 marks L2)
 Limited knowledge why marketing is a factor affecting business success – marketing is responsible for the efficiency of
the sales campaign. (1 mark L1)

AO2 Application
 New coffee shops pop up regularly – could be run from a van or small stall selling drinks.
 New coffee shops could offer a range of different types of coffee e.g. latte, flavoured coffee.
 New coffee shops may offer other products e.g. other beverages, cakes, small savoury snacks.

 Developed application – how marketing might be applied to the development of a new coffee shop – social media
campaign informing customers of the different variety of coffee beans they use in their drinks e.g. ethical sourcing. (2
marks L2)
 Limited application – how marketing might be applied to the development of a new coffee shop – advertising the types
of beverages and food sold in the shop. (1 mark L1)

© UCLES 2023 Page 30 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
Question Answer Marks

6(b) AO3 Analysis


 Marketing activities – can support and underpin the success of small businesses – carry out effective sales and
promotion strategies
 Marketing activities – can create awareness of a product/service – establish and strengthen customer relationships
 Marketing activities – cost money and early activity for a new small business may require substantial expenditure
 Cost management needs to be effective – new small businesses may have little cash after set-up costs – working
capital needs to be carefully managed
 Entrepreneurial and management skills – success may require more than enthusiasm – regular review of the business
model may be required
 Product quality – continuous attention to customer perceptions of quality needed – variations and product additions
may be needed
 Customer satisfaction – the product/service offer will succeed if a USP (for the product or attractiveness of the
premises) is established.

 Developed analysis – marketing ensures that sales campaigns are effective and promotion strategies are implemented
for a business – this ensures that a market presence is established as customers are made aware of the offer, leading
to healthy initial sales and revenue. (2 marks L2)
 Limited analysis – the use of the 4Ps (especially promotion) stimulates the sales of a new business. (1 mark L2)

AO4 Evaluation
 Eval 6 – developed judgement/conclusion is made in context (new coffee shop) (6 marks )
 Eval 5 – developed evaluative comments given in context (new coffee shop) (5 marks )
 Eval 4 – developed judgement/conclusion is made, not in the context of a new coffee shop. (4 marks )
 Eval 3 – developed evaluative comments made, not in the context of a new coffee shop. (3 marks )
 Eval 2 – judgement/conclusion is made but with little supporting evidence, again not in context. (2 marks )
 Eval 1 – an attempt is made to balance arguments. (1 marks )
 Eval 0 – no evaluation is attempted (0 marks)

 A judgement/conclusion is made as to whether marketing is the most important factor affecting the success of a new
coffee shop.
 Such judgements/conclusions may be made at any point in the essay, not just in a concluding section.
 Judgement is made that marketing activities can be important to the success of a small coffee shop.

© UCLES 2023 Page 31 of 32


9609/12 Cambridge International AS & A Level – Mark Scheme May/June 2023
PUBLISHED
Question Answer Marks

6(b)  The question is however asked do some businesses have specific limitations in terms of how much is available to
spend on marketing and might that apply to a small coffee shop?
 The question is also asked `are some marketing activities more important than others’? – is market research for new
businesses more important than advertising and promotion?
 Could other factors be as important or more important than marketing – e.g. liquidity/cash control, effective business
planning, degree of competition, the volatility of the economy.
 Is the quality of the beverages and associated food and the ambience of the shop, more important than marketing?
 Would an appropriate level of working capital be more important than marketing and would finance limit the extent and
kind of marketing employed?

Accept all valid responses.

© UCLES 2023 Page 32 of 32


Cambridge International AS & A Level

BUSINESS 9609/13
Paper 1 Business Concepts 1 October/November 2023

1 hour 15 minutes

You must answer on the enclosed answer booklet.


* 2 6 6 4 8 9 6 2 8 0 *

You will need: Answer booklet (enclosed)

INSTRUCTIONS
● Answer five questions in total:
Section A: answer all questions.
Section B: answer one question.
● 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 40.
● 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 (CE) 316878/2
© UCLES 2023 [Turn over
2

Section A

Answer all questions.

1 (a) Define the term organic growth. [2]

(b) Explain one reason a business may choose to remain small. [3]

2 (a) Define the term curriculum vitae. [2]

(b) Explain one benefit to an employee of having an employment contract. [3]

3 (a) Define the term venture capital. [2]

(b) Explain one disadvantage of using trade credit as a source of finance. [3]

4 Analyse one impact on a business’s marketing decisions of using product portfolio analysis. [5]

Section B

Answer one question only.

EITHER

5 (a) Analyse two qualities an intrapreneur should possess to be successful. [8]

(b) ‘Ethics should significantly influence the marketing activities of all retail clothing businesses.’

Evaluate this view. [12]

OR

6 (a) Analyse two ways in which operations contributes to added value in a business. [8]

(b) ‘Supply chain management has the most significant impact on the effectiveness of a hospital.’

Evaluate this view. [12]

© UCLES 2023 9609/13/O/N/23


3

BLANK PAGE

© UCLES 2023 9609/13/O/N/23


4

BLANK PAGE

Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every
reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
publisher will be pleased to make amends at the earliest possible opportunity.

To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge
Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download
at www.cambridgeinternational.org after the live examination series.

Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge
Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge.

© UCLES 2023 9609/13/O/N/23


Cambridge International AS & A Level

BUSINESS 9609/13
Paper 1 Short Answer/Essay October/November 2023
MARK SCHEME
Maximum Mark: 100

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 October/November 2023 series for most
Cambridge IGCSE, Cambridge International A and AS Level components, and some Cambridge O Level
components.

This document consists of 24 printed pages.

© UCLES 2023 [Turn over


9609/13 Cambridge International AS & A Level – Mark Scheme October/November
PUBLISHED 2023

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.

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.

© UCLES 2023 Page 2 of 24


9609/13 Cambridge International AS & A Level – Mark Scheme October/November
PUBLISHED 2023

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).

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.

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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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9609 Business Studies – Paper 1 Annotations

Annotation Description Use

Tick Indicates a point which is relevant and rewardable.

Cross Indicates a point which is inaccurate/irrelevant and not


rewardable.

Knowledge Indicates knowledge and understanding of the concepts


and issues relating to the question.

Application Indicates where application is made to an appropriate


business context.

Analysis Indicates where the answer has demonstrated analysis –


questions 4, 5a, 5b, 6a and 6b.

Evaluation Indicates where the answer has demonstrated evaluation –


(Section B Part (b) questions only).

Benefit of Used when the benefit of the doubt is given in order to


doubt reward a response.

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

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

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

Repetition Indicates where content has been repeated.

Level 1 Indicates a Level 1 point is made.

Level 2 Indicates a Level 2 point is made.

Level 3 Indicates a Level 3 point is made.

Off Page Used to view PE comments on Practice Scripts only –


Comment displayed at the bottom of the screen when clicking the
comments button/toggle.

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Guidance on using levels–based mark schemes

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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Mark Grids for Section A

Used for Q1(a), Q2(a) and Q3(a)

Two marks in total can be awarded for these questions.

AO1 Knowledge and understanding Marks

Knowledge of the term that demonstrates a clear 2


understanding of the term.

Knowledge of the term that demonstrates a partial 1


understanding of the term.

No creditable response. 0

Used for Q1(b), Q2(b) and Q3(b)

Three marks in total can be awarded for these questions.

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 Limited application of one relevant point to a
answer the question. business context.
Indicated by 1 where appropriate in the
answer

0 marks 0 marks
No creditable response. No creditable response.

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Question Answer Marks

1(a) Define the term organic growth. 2

Indicative content

Responses may include:

AO1 Knowledge and understanding


Clear understanding (2 marks)
• Organic growth is the growth of a business through internal processes,
relying on its own resources without using external

Partial understanding (1 mark)


• Organic growth is internal growth

Accept all valid responses.

1(b) Explain one reason a business may choose to remain small 3

Indicative content

Responses may include:

AO1 Knowledge and understanding


Reasons why a business may remain small include:
• Personal choice of business owner
• Unwilling to take risks of growth
• Lack of finance
• Unable/unwilling to meet costs of growth
• Unwilling to lose control
• Concern for quality
• Lack ambition
• Unwilling to accept increases management responsibility
• Determined to remain flexible
• Committed to the small business model
• Lack of demand
• Form better relationships with employees/customers.

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Question Answer Marks

1(b) AO2 Application


• The lifestyle choice of business owners – to maintain a healthy work–life
balance
• Small business owners may not know how to expand – unwilling to take
risks and compete in more markets
• Lack of investment capital – unwilling to increase borrowing
• Reluctant to engage in more marketing activities – cannot afford the costs
• Unwilling to give up control of the business – expansion may reduce
control and satisfaction
• Fear of losing control over the quality of product/service – personal
hands–on service may be the USP of the business
• Desire to keep overheads (fixed costs) to a minimum – lack ambition to
explore growth
• Avoid the regulatory burdens associated with large business – content to
keep the business processes simple
• Maintain a high level of flexibility and adaptability to dynamic markets –
sees the agility of a small business as an asset
• Lower revenue than large business but profit margins may be higher –
the small business model is effective

Accept all valid responses.

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Question Answer Marks

2(a) Define the term curriculum vitae. 2

Indicative content

Responses may include:

AO1 Knowledge and understanding


Clear understanding (2 marks)
• A curriculum vitae (CV) is a document of a person’s education,
qualifications, and previous occupations/experience

Partial understanding (1 mark)


• A CV is a record of a person’s achievements/used for a job application.

Accept all valid responses.

2(b) Explain one benefit to an employee of having an employment contract. 3

Indicative content

Responses may include:

AO1 Knowledge and understanding


• Employees know exactly what is required of them as employees
• Rights and responsibilities are clearly set out
• Pay and benefits are made explicit
• Protection from arbitrary action by employers
• Provides certainty

AO2 Application
• Employees have a clear statement of what is required of them in a period
of employment—there is no ambiguity –the employment status of an
employee is clear
• Provides job security to an employee
• A clear statement of conditions of employment – that an employer must
honour – employee has written protection of rights
• Gives clarity about remuneration and benefits – protects employees at
times of conflict and disputes with employers
• Benefits relating to sick pay, redundancy, and hours of work are among
the basic rights set out in the contract – these and other basic rights
protected from actions of rogue employers
• Prevents unauthorised deductions by the employer – employee protected
from arbitrary employer action
• Contract provides consistency and stability for an employee –
consultation is normally required before any changes can be made in the
contract

Accept all valid responses.

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Question Answer Marks

3(a) Define the term venture capital. 2

Indicative content

Responses may include:

AO1 Knowledge and understanding


Clear understanding (2 marks)
• Venture capital is investment funding/risk capital provided by venture
capitalists/venture capital companies/external source of finance/given for
share of ownership

Partial understanding (1 mark)


• Capital provided to start/grow/expand a business

Accept all valid responses.

3(b) Explain one disadvantage of using trade credit as a source of finance. 3

Indicative content

Responses may include:

AO1 Knowledge and understanding


• Unable to take advantage of discounts for early payment
• Can affect relationships with suppliers
• Can result in losing suppliers
• Conditions of trade credit may be prohibitive
• May lead to a business losing control of working capital

AO2 Application
• Trade credit – may mean the loss of early payment discount – there may
be financial consequences
• Can lead to fees/penalties for late payment
• If the trade credit agreement is not adhered to – it can spoil relationships
with suppliers and change the terms of an agreement
• Failure to comply with the conditions – could lead to the loss of a valuable
supplier
• For new/small businesses, the trade credit may be hard to get –
and/repayment conditions may be restrictive
• ‘Free money’ can turn into ‘expensive debt – may prevent a business
establishing appropriate cash control and a healthy working capital
• Trade credit does not provide any additional finance – only cashflow
advantages

Accept all valid responses.

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Question Answer Marks

4 Analyse ONE impact on a business’ marketing decisions of using 5


product portfolio analysis.

Indicative content

Responses may include:

AO1 Knowledge and understanding


• Impact may include:
• Reduce/increase the marketing budget on less/more profitable products
• Important market intelligence produced
• Market condition of products revealed
• Important indicators of future business performance presented – need for
new products. Need for extension strategies
• May suggest a new marketing mix approach
• Develop new products
• Expand into new markets

AO2 Application
• Product portfolio analysis may provide information to the marketing
department that suggests the need for a change or revision of the
marketing strategy for the department – and subsequently for the
business
• It may well suggest a change in priorities within the approach to the
marketing mix – possible switch away from extension strategies to new
product development initiatives
• Suggest a review of pricing policy, promotion policy.

AO3 Analysis
• Product portfolio analysis can reveal the need to make new marketing
decisions – evidence of some products that require drastic action if they
are to continue to be revenue earning
• Provide evidence of failing products that need to be removed – and be
replaced
• Provides evidence of the need to strengthen the product portfolio analysis
approach – it may be under resourced and unable to match the changes
in a dynamic market environment
• Suggests that previous marketing decisions are no longer appropriate –
some products could and should benefit with more online and social
media investment
• Portfolio analysis might reveal the need to adjust the pricing strategy for a
group of products – change to penetration pricing
• Portfolio analysis might reinforce the need for marketing decisions and an
integrated marketing strategy – that makes changes across the marketing
mix rather than just in the product element, in order to bring about a
change in the marketing focus of the business

Accept all valid responses.

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Question Answer Marks

5(a) Analyse two qualities an intrapreneur should possess to be successful. 8

Indicative content

Responses may include:

AO1 Knowledge and understanding


Intrapreneur is an employee tasked with developing an innovative idea or
project within a business
Someone who behaves like an entrepreneur within a business but does not
face the same risks or reap the same rewards
Qualities of an intrapreneur include:
• Innovator
• Risk taker
• Creative thinker
• Problem solver
• Project leader–matrix organisation
• Lateral thinker
• Politically astute/networker
• Ability to communicate ideas
• Ability to convince others to accept ideas
• Determination/perseverance

AO2 Application
• Innovator and risk taker – challenges the status quo
• Creative thinker – thinks new and big ideas
• Problem solver – enjoys seeking new solutions
• Passionate and hard working – inspires/motivates others
• Lateral and holistic thinker – thinks outside of the box
• Politically adept – forms coalitions/multi–functional teams

AO3 Analysis
• Intrapreneur acquires knowledge of the internal and external business
environment – uses it to remove opposition and blocks to innovation and
change
• Uses knowledge and experience to set out a vision for an idea/project –
challenges the current way of doing things
• Sees problems as opportunities – willing to take risks and make mistakes
• Inspires others to think as an intrapreneur/entrepreneur – sets an
example of energy, enthusiasm
• Builds and leads cross–functional teams – more ideas and perceptions
contributed
• Skilled in internal politics – ignores or overcomes opposition – seeks and
gets support from senior management—builds coalitions
• Always seeking ways to refresh business activity – seeks
transformational change not marginal change

Accept all valid responses.

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Question Answer Marks

5(b) `Ethics should significantly influence the marketing activities of all retail 12
clothing businesses`. Evaluate this view.

Indicative content

Responses may include:

AO1 Knowledge and understanding


• Ethics is an approach to business activity that incorporates a set of moral
principles including a clear understanding of what is right and what is
wrong, and a clear commitment to keep to that distinction in all business
decisions and all business behaviour
• Marketing activities are those that aim to bring customers and business
together so that customers are attracted to purchase products and so
contribute to the revenue and profits of the business. marketing activities
include all those from market research to the packaging of a product –
over all elements of the marketing mix
• Retail clothing business will use marketing activities to persuade the
customer to purchase their brands and will mount campaigns to inform
and convince customers of the value of the retail offer

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Question Answer Marks

5(b) AO2 Application


• Marketing activities associated with retail clothing businesses exemplifies
many moral dilemmas that may confront a business – provoke
controversy that affects the reputation of a business
• Employee exploitation of clothing retail suppliers’ employees – child
labour leads to demands for more ethical conduct
• Poor employment standards in overseas factories that supply clothing
retailers – calls for the business to stop marketing the products
• More general marketing dilemmas may also affect retail clothing
businesses – more ethical marketing practices may be considered and
required
• Market research raises ethical concerns – methods that invade privacy–
leave out groups of consumers
• Advertising and promotion – sexual innuendo,
• Direct marketing – unsolicited approaches
• Predatory pricing – to drive competitors out

AO3 Analysis
• Compliance to legal and regulatory codes and/or acceptance of voluntary
ethical codes of business behaviour – the potential commitment of
business – not just compliance to a minimum set of regulations
• A commitment to ethical marketing in a mission and values statement – a
reputational tactic or a real commitment to act ethically?
• Marketing activities such as pricing can resist too aggressive strategies –
avoid predatory pricing
• A business may resist producing and marketing poor quality products – a
deliberate planned obsolescence policy to put certain customers under
pressure to replace
Marketing department and associated marketing decisions may conflict with
other stakeholder aspirations – may be dismissive of absolute ethical
approaches – may ignore or minimise concerns about dubious advertising
and promotion tactics

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Question Answer Marks

5(b) AO4 Evaluation

Developed evaluation Developed / Supported 6 marks


in context: judgement in context

Developed evaluation Developed/Reasonable 5 marks


in context: evaluative comments in
context

Developed evaluation Developed / Supported 4 marks


not in context: judgement without
context

Developed evaluation Developed/Reasonable 3 marks


not in context: evaluative comments
without context

Limited evaluation not Limited supported 2 marks


in context: judgement

Limited evaluation not An attempt to balance 1 mark


in context: the arguments / Weak
attempt at evaluative
comments

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Question Answer Marks

5(b) A judgement/conclusion is made of the view that the activities of all retail
clothing businesses should be significantly influenced by ethics
Such judgements/conclusions may be made at any point in the essay and not
just in a concluding section

• Judgement made that retail clothing businesses do have some striking


moral dilemmas in terms of producers and suppliers of raw materials and
finished clothing products from overseas and are a special case with
many moral dilemmas and commercial conflicts.
• Concludes that it appears that some retailers turn a blind eye to such
issues
• Conclusion may be given that ethical objectives do not always lead to
ethical business decision–making – is a call for bottom line businesses to
make ethical decisions– an idealistic theoretical concept unsupported by
business reality
• Judgement may be made that ethical objectives are merely a sign of
corporate window dressing
• Suggestion/judgement may be made that many businesses still practice
ethically questionable activities within the law
• The question may be asked if total ethical market decision–making can
be compatible with commercial business success?
• The question may be asked if there will always be some businesses that
stop short of illegal activities but continue to engage in what many
consider to be unethical business activities?

Accept all valid responses

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Question Answer Marks

6(a) Analyse two ways in which operations contributes to added value in a 8


business.

Indicative content

Responses may include:

AO1 Knowledge and understanding


• Operations is the harvesting of value from the assets owned by a
business – the concept can refer to the production and transformation
process in a business or in a broader sense to all the operations in a
business
• Added value is the difference between the price of a finished good and
the cost of the inputs in making it – added value – can be achieved in
different ways – building a car in an innovative way or building the brand
of a business

The ways operations contributes to added value in a business include:


• To satisfy customers
• Produce quality goods
• Ensure production process is efficient
• Ensure supply chain is efficient
• Ensure all functional business areas contribute

AO2 Application
• The goal of operations is to add value – essentially be strengthening the
relationship between the organisation and its customers – the aim of all
the functional areas in a business
• Main aim is to ensure the business produces quality products that can
satisfy the needs of customers on a regular basis–the production process
is involved as is marketing and human resources
• Production process in a manufacturing business – converting raw
materials into a cell phone
• Marketing operations – promote the quality of a product and the customer
prepared to pay the price
• Human resources – the right employees are hired, trained, and equipped
to add value with front line superb service in a service business

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Question Answer Marks

6(a) AO3 Analysis


• Manufacturing business adds value through its production process – raw
materials into finished products – sources quality materials from suppliers
– new cars come off the production line assembled by robots
• Production takes copper, plastic, lithium – converts into smart phones –
software specialists increase functionality with up– grades
• Marketing operations – promote the business reputation for quality and
establish a USP to differentiate and add value
• Marketing operations – improve the supply chain to deliver excellent
delivery systems to attract customers
• Inventory operations – focus on appropriate order and storage system to
make the transformation system more efficient
• Lean management/right first time efficiency systems – used to reduce
waste and add value

Accept all valid responses

6(b) ‘Supply Chain Management has the most significant impact on the 12
effectiveness of a hospital’. Evaluate this view.

Indicative content

Responses may include:

AO1 Knowledge and understanding


• Supply chain management is the flow of goods and services between
businesses and locations including the movement and storage of raw
materials
• Supply chain management concerned with handling the entire production
flow of a good or service from raw material components to final product
delivery to the customer
• Effectiveness is the ability of a business to achieve its objectives – to
deliver a desired result
• Hospital is in the business of treating sick patients – it combines skilled
staff with high technology equipment to make sick people more healthy

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Question Answer Marks

6(b) AO2 Application


The effectiveness of a hospital is impacted by many factors

• Human resource management is important – hospitals are essentially


labour intensive organisations
• Human resources consist of a variety of staff specialisms – including
nurses, doctors, cleaners, and porters
• Technology – operating theatres need high tech equipment to provide
surgeons with appropriate facilities
• Management/administration – needs to be competent so that the path
from initial examination to discharge is efficient
• External ambulance services – need to be connected to the mainstream
hospital activities
• Supply chain management – focus on components/raw material delivery
to patient delivered home
• Supply chain management – the logistics system impacts on the work of
hospitals

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Question Answer Marks

6(b) AO3 Analysis


• Supply chain management – essentially concerned with logistics and
purchasing inventory – aim is to minimise shortages and to keep costs
down – essential to all businesses
• Supply chain management –– the connected network of all individuals,
organisations, resources, activities associated with the operations of a
business – there are many places along the supply chains where value
can be added or lost
• Supply chain management involved in the procurement of raw materials,
the processing into finished goods and services, and the distribution to
the customer – a potentially all–embracing management function –
impact on organisational efficiency and effectiveness
• Supply chain management is relevant not only for tangible products but
also for services – focus is more on developing relationships, exchanging
information, communication flows – the focus is on people rather than
physical products
• Supply chain management is relevant to service businesses – particularly
in the case of logistics – at the start and end of the flow of operational
activity

AO4 Evaluation

Developed evaluation Developed / Supported 6 marks


in context: judgement in context

Developed evaluation Developed/Reasonable 5 marks


in context: evaluative comments in
context

Developed evaluation Developed / Supported 4 marks


not in context: judgement without
context

Developed evaluation Developed/Reasonable 3 marks


not in context: evaluative comments
without context

Limited evaluation not Limited supported 2 marks


in context: judgement

Limited evaluation not An attempt to balance 1 mark


in context: the arguments / Weak
attempt at evaluative
comments

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Question Answer Marks

6(b) A judgement/conclusion given as to the importance of supply chain


management as an operational factor to a hospital
Such judgements/conclusions may be made at any point in the essay, not just
in a concluding section

• Judgement can be made that supply chain management is important to a


service organisation such as a hospital and is not restricted to
manufacturing
• It can be concluded that there are aspects of supply chain management
that are very relevant to hospitals– the shortage of personal protective
equipment and medical equipment at times of health emergencies
dramatically illustrates the dependence of hospitals on an efficient supply
chain
• It can be concluded that some basic hospital activities are very
dependent on efficient supply chain planning and management – such as
instruments – drugs – ambulance transfers
• The question could be asked – is supply chain management in its infancy
in the service sector or is it increasingly being recognised as a critical
factor in the effective management of service organisations such as
hospitals
• Judgement may be made that while supply chain management is
important to the effective functioning of a hospital there may be more
important operational factors such as recruitment/training, budgeting,
financial planning – and that it may depend on the situation of a hospital
at a particular point of time – is it financially healthy, is there a critical
shortage of nurses, does operational technology need updating?

Accept all valid responses.

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Mark Grids for Section B

Used for Q5(a) and Q6(a)

Leve AO1 Knowledge and AO2 Application AO3 Analysis


l 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.
• Developed analysis that identifies
connections between causes, impacts
and/or consequences of one point.

1 1–2 marks 1–2 marks 1–2 marks


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

0 0 marks 0 marks 0 marks


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

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Mark Grids for Section B

Used for Q5(b) and Q6(b)

Level AO1 Knowledge AO2 AO3 Analysis AO4 Evaluation


and Application 2 marks 6 marks
understanding 2 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 Developed Developed Developed evaluation
knowledge of application of analysis • A developed
relevant key relevant point(s) that identifies judgement/conclusion is
term(s) and/or to the business connections made.
factor(s) is used to context. between • Developed evaluative
answer the causes, impacts comments which balance
question. and/or some key arguments.
consequences.

1 1 mark 1 mark 1 mark 1–2 marks


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

0 0 marks 0 marks 0 marks 0 marks


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

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