9609 m24 QP 12 Merged
9609 m24 QP 12 Merged
BUSINESS 9609/12
Paper 1 Business Concepts 1 February/March 2024
1 hour 15 minutes
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 [ ].
DC (SL) 332138/2
© UCLES 2024 [Turn over
2
Section A
(b) Explain one factor of production needed for business activity. [3]
(b) Explain one impact on employees of being trade union members. [3]
(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
EITHER
(b) ‘Promotion is the most important element of the marketing mix for the success of a parcel
delivery business.’
OR
(b) ‘The most important objective of a public sector energy supplier is the environmental
objective.’
BLANK PAGE
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.
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.
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.
• the specific content of the mark scheme or the generic level descriptors for the question
• the specific skills defined in the mark scheme or in the generic level descriptors for the question
• the standard of response required by a candidate as exemplified by the standardisation scripts.
Marks awarded are always whole marks (not half marks, or other fractions).
• marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond
the scope of the syllabus and mark scheme, referring to your Team Leader as appropriate
• marks are awarded when candidates clearly demonstrate what they know and can do
• marks are not deducted for errors
• marks are not deducted for omissions
• answers should only be judged on the quality of spelling, punctuation and grammar when these features are specifically assessed by the
question as indicated by the mark scheme. The meaning, however, should be unambiguous.
Rules must be applied consistently, e.g. in situations where candidates have not followed instructions or in the application of generic level
descriptors.
Marks should be awarded using the full range of marks defined in the mark scheme for the question (however; the use of the full mark range may
be limited according to the quality of the candidate responses seen).
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should not be awarded with grade thresholds or
grade descriptors in mind.
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)
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.
Knowledge Indicates knowledge and understanding of the concepts and issues relating to the question.
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
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.
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
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.
No creditable response. 0
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.
Indicative content
Indicative content
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
Indicative content
Indicative content
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
Indicative content
Indicative content
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
Indicative content
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
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
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
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
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
5(b) ‘Promotion is the most important element of the marketing mix for the success of a parcel delivery business.’ 12
2 marks for
2 marks for
2 marks for
6 marks for
Indicative content
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
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
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.
8 marks in total for Q6(a): 4 marks for each of the two barriers to an entrepreneur when starting up a business.
Indicative content
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.
6(b) ‘The most important objective of a public sector energy supplier is the environmental objective.’ 12
2 marks for
2 marks for
2 marks for
6 marks for
Indicative content
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
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
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?
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.
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.
BUSINESS 9609/11
Paper 1 Business Concepts 1 May/June 2024
1 hour 15 minutes
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 [ ].
DC (SL) 344505/3
© UCLES 2024 [Turn over
2
Section A
(b) Explain one purpose of JIC (Just in Case) inventory management. [3]
4 Analyse one impact on the workforce of effective communication of business objectives. [5]
Section B
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]
BLANK PAGE
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.
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.
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.
the specific content of the mark scheme or the generic level descriptors for the question
the specific skills defined in the mark scheme or in the generic level descriptors for the question
the standard of response required by a candidate as exemplified by the standardisation scripts.
Marks awarded are always whole marks (not half marks, or other fractions).
marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond
the scope of the syllabus and mark scheme, referring to your Team Leader as appropriate
marks are awarded when candidates clearly demonstrate what they know and can do
marks are not deducted for errors
marks are not deducted for omissions
answers should only be judged on the quality of spelling, punctuation and grammar when these features are specifically assessed by the
question as indicated by the mark scheme. The meaning, however, should be unambiguous.
Rules must be applied consistently, e.g. in situations where candidates have not followed instructions or in the application of generic level
descriptors.
Marks should be awarded using the full range of marks defined in the mark scheme for the question (however; the use of the full mark range may
be limited according to the quality of the candidate responses seen).
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should not be awarded with grade thresholds or
grade descriptors in mind.
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)
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.
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
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
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.
Two marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these marks.
No creditable response. 0
Three marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these 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.
Indicative content
Indicative content
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
Indicative content
Indicative content
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
Indicative content
Indicative content
Indicative content
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
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
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
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
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
5(b) Evaluate whether small retail businesses have an important role in the economy. 12
2 marks for
2 marks for
2 marks for
6 marks for
Indicative content
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
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
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.
Indicative content
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
6(b) Evaluate whether setting budgets is important to the success of a farming business. 12
2 marks for
2 marks for
2 marks for
6 marks for
Indicative content
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
AO4 Evaluation
6 marks for evaluation
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?
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.
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.
BUSINESS 9609/12
Paper 1 Business Concepts 1 May/June 2024
1 hour 15 minutes
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 [ ].
DC (SL) 333927
© UCLES 2024 [Turn over
2
Section A
4 Analyse one reason why product differentiation may be important to a business. [5]
Section B
EITHER
(b) Evaluate whether working capital is the most important source of finance for a start-up
furniture manufacturer. [12]
OR
(b) ‘Work-life balance is the most important human resource management (HRM) factor for
employee welfare in a local bus service.’
BLANK PAGE
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.
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.
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.
the specific content of the mark scheme or the generic level descriptors for the question
the specific skills defined in the mark scheme or in the generic level descriptors for the question
the standard of response required by a candidate as exemplified by the standardisation scripts.
Marks awarded are always whole marks (not half marks, or other fractions).
marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond
the scope of the syllabus and mark scheme, referring to your Team Leader as appropriate
marks are awarded when candidates clearly demonstrate what they know and can do
marks are not deducted for errors
marks are not deducted for omissions
answers should only be judged on the quality of spelling, punctuation and grammar when these features are specifically assessed by the
question as indicated by the mark scheme. The meaning, however, should be unambiguous.
Rules must be applied consistently, e.g. in situations where candidates have not followed instructions or in the application of generic level
descriptors.
Marks should be awarded using the full range of marks defined in the mark scheme for the question (however; the use of the full mark range may
be limited according to the quality of the candidate responses seen).
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should not be awarded with grade thresholds or
grade descriptors in mind.
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)
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.
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
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
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.
Two marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these marks.
No creditable response. 0
Three marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these 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.
Indicative content
Indicative content
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.
Indicative content
Indicative content
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.
Indicative content
Indicative content
AO1 Knowledge and understanding – 1 mark for identifying one benefit to a business of capital intensive operations
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
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
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
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
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.
5(b) Evaluate whether working capital is the most important source of finance for a start-up furniture manufacturer. 12
2 marks for
2 marks for
2 marks for
6 marks for
Indicative content
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
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
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
There are 8 marks in total for Q6(a) – 4 marks for each of the two benefits to a business of low labour turnover.
Indicative content
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.
6(b) ‘Work-life balance is the most important human resource management (HRM) factor for employee welfare in a local 12
bus service.’
2 marks for
2 marks for
2 marks for
6 marks for
Indicative content
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.
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.
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?
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.
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.
BUSINESS 9609/12
Paper 1 Business Concepts 1 October/November 2024
1 hour 15 minutes
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 [ ].
DC (WW) 337469/3
© UCLES 2024 [Turn over
2
Section A
(b) Explain one way the aims of employees may impact on the decisions of a business. [3]
(b) Explain one reason why a business might use price discrimination. [3]
Section B
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
BLANK PAGE
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.
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.
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.
• the specific content of the mark scheme or the generic level descriptors for the question
• the specific skills defined in the mark scheme or in the generic level descriptors for the question
• the standard of response required by a candidate as exemplified by the standardisation scripts.
Marks awarded are always whole marks (not half marks, or other fractions).
• marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond
the scope of the syllabus and mark scheme, referring to your Team Leader as appropriate
• marks are awarded when candidates clearly demonstrate what they know and can do
• marks are not deducted for errors
• marks are not deducted for omissions
• answers should only be judged on the quality of spelling, punctuation and grammar when these features are specifically assessed by the
question as indicated by the mark scheme. The meaning, however, should be unambiguous.
Rules must be applied consistently, e.g. in situations where candidates have not followed instructions or in the application of generic level
descriptors.
Marks should be awarded using the full range of marks defined in the mark scheme for the question (however; the use of the full mark range may
be limited according to the quality of the candidate responses seen).
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should not be awarded with grade thresholds or
grade descriptors in mind.
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)
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.
Knowledge Indicates knowledge and understanding of the concepts and issues relating to the question.
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.
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.
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.
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
• 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.
Two marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these 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
Three marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these 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.
Indicative content
• 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)
1(b) Explain one way the aims of employees may impact on the decisions of a business. 3
Indicative content
• 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
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.
Indicative content
• 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.
Indicative content
Indicative content
• 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.
3(b) Explain one reason why a business might use price discrimination. 3
Indicative content
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.
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
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
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.
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
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’.
5(b) Evaluate whether the sustainability of operations is the most important operating factor in a large retail 12
distribution business.
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.
• 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
• 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
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
• 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
• 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
6(b) ‘Market research is essential for effective product development in a hotel’. Evaluate this view. 12
Indicative content
• 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
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:
AO3 Analysis
2 marks for developed analysis L2
1 mark for limited analysis L1
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
9609/12 Cambridge International AS & A Level – Mark Scheme October/November 2024
PUBLISHED
Question Answer Marks
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
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.
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.
BUSINESS 9609/11
Paper 1 Business Concepts 1 October/November 2024
1 hour 15 minutes
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 [ ].
DC (SL) 337463/1
© UCLES 2024 [Turn over
2
Section A
(b) Explain one method of interpreting quantitative market research data. [3]
(b) Explain one reason why a business may produce a workforce plan. [3]
Section B
EITHER
(b) ‘A chocolate manufacturer should use external methods of growth to successfully achieve its
objectives.’
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.’
BLANK PAGE
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.
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.
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.
• the specific content of the mark scheme or the generic level descriptors for the question
• the specific skills defined in the mark scheme or in the generic level descriptors for the question
• the standard of response required by a candidate as exemplified by the standardisation scripts.
Marks awarded are always whole marks (not half marks, or other fractions).
• marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond
the scope of the syllabus and mark scheme, referring to your Team Leader as appropriate
• marks are awarded when candidates clearly demonstrate what they know and can do
• marks are not deducted for errors
• marks are not deducted for omissions
• answers should only be judged on the quality of spelling, punctuation and grammar when these features are specifically assessed by the
question as indicated by the mark scheme. The meaning, however, should be unambiguous.
Rules must be applied consistently, e.g. in situations where candidates have not followed instructions or in the application of generic level
descriptors.
Marks should be awarded using the full range of marks defined in the mark scheme for the question (however; the use of the full mark range may
be limited according to the quality of the candidate responses seen).
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should not be awarded with grade thresholds or
grade descriptors in mind.
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)
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.
Knowledge Indicates knowledge and understanding of the concepts and issues relating to the question.
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
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.
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
• 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.
Two marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these 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
Three marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these 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.
Indicative content
• budgets are automatically set to zero and budget holders must argue their case to receive any finance/funds (2)
Indicative content
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
Indicative content
• selecting a group of people/customers to represent the population/customer base/target market as a whole (2)
Indicative content
• 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
Indicative content
• Similar/separate to a CV (1)
3(b) Explain one reason why a business may produce a workforce plan. 3
Indicative content
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
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.
AO2 Application
2 marks for developed application/explanation of the chosen benefit
1 mark for limited application/explanation of the chosen benefit
AO3 Analysis
2 marks for developed analysis of the chosen one benefit
1 mark for limited analysis of the chosen one benefit
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
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
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
5(b) ‘A chocolate manufacturer should use external methods of growth to successfully achieve its objectives.’ 12
Indicative content
• 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
• 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
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
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.
Note: Some candidates make the application points as knowledge points and vice versa. This is acceptable and should be
rewarded.
• 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
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
6(b) ‘Non-financial motivators are the most effective methods of motivating a hotel’s employees.’ 12
Indicative content
• 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
• 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
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
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.
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.
BUSINESS 9609/13
Paper 1 Business Concepts 1 October/November 2024
1 hour 15 minutes
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 [ ].
DC (SL) 337467/3
© UCLES 2024 [Turn over
2
Section A
(b) Explain one implication for a business of having a low rate of labour turnover. [3]
(b) Explain one reason why product development might be important for a business. [3]
(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
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.’
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]
BLANK PAGE
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.
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.
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.
• the specific content of the mark scheme or the generic level descriptors for the question
• the specific skills defined in the mark scheme or in the generic level descriptors for the question
• the standard of response required by a candidate as exemplified by the standardisation scripts.
Marks awarded are always whole marks (not half marks, or other fractions).
• marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond
the scope of the syllabus and mark scheme, referring to your Team Leader as appropriate
• marks are awarded when candidates clearly demonstrate what they know and can do
• marks are not deducted for errors
• marks are not deducted for omissions
• answers should only be judged on the quality of spelling, punctuation and grammar when these features are specifically assessed by the
question as indicated by the mark scheme. The meaning, however, should be unambiguous.
Rules must be applied consistently, e.g. in situations where candidates have not followed instructions or in the application of generic level
descriptors.
Marks should be awarded using the full range of marks defined in the mark scheme for the question (however; the use of the full mark range may
be limited according to the quality of the candidate responses seen).
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should not be awarded with grade thresholds or
grade descriptors in mind.
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)
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.
Knowledge Indicates knowledge and understanding of the concepts and issues relating to the question.
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.
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.
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.
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
• 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.
Two marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these 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
Three marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these 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.
Indicative content
• 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).
1(b) Explain one implication for a business of having a low rate of labour turnover. 3
Indicative content
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
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
Indicative content
• Making your product stand out from the competition … provides a competitive advantage or USP (2)
2(b) Explain one reason why product development might be important for a business. 3
Indicative content
Note: Textbooks suggest that `product development` means further development of existing products in a product portfolio
as well as the development of new products.
Indicative content
• 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)
3(b) Explain one advantage of using retained earnings as a source of business finance. 3
Indicative content
• 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.
Indicative content
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
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
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.
• 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
5(b) ‘Even a friendly merger between two social media companies may not be successful ` Evaluate this view. 12
Indicative content
• 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
• 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
• 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
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
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
• 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
6(b) Evaluate whether the contribution of the managers in a new hospital will have the most influence on its 12
performance.
Indicative content
• 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
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
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
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
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.
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.
BUSINESS 9609/13
Paper 1 Business Concepts 1 May/June 2024
1 hour 15 minutes
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 [ ].
DC (SL) 332166/2
© UCLES 2024 [Turn over
2
Section A
(b) Explain one method of improving cash flow for a business. [3]
4 Analyse one possible impact on a business of operating over maximum capacity. [5]
Section B
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.’
BLANK PAGE
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.
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.
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.
the specific content of the mark scheme or the generic level descriptors for the question
the specific skills defined in the mark scheme or in the generic level descriptors for the question
the standard of response required by a candidate as exemplified by the standardisation scripts.
Marks awarded are always whole marks (not half marks, or other fractions).
marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond
the scope of the syllabus and mark scheme, referring to your Team Leader as appropriate
marks are awarded when candidates clearly demonstrate what they know and can do
marks are not deducted for errors
marks are not deducted for omissions
answers should only be judged on the quality of spelling, punctuation and grammar when these features are specifically assessed by the
question as indicated by the mark scheme. The meaning, however, should be unambiguous.
Rules must be applied consistently, e.g. in situations where candidates have not followed instructions or in the application of generic level
descriptors.
Marks should be awarded using the full range of marks defined in the mark scheme for the question (however; the use of the full mark range may
be limited according to the quality of the candidate responses seen).
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should not be awarded with grade thresholds or
grade descriptors in mind.
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)
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.
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.
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
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.
Two marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these marks.
No creditable response. 0
Three marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these 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.
Indicative content
Indicative content
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
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
Indicative content
Indicative content
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.
Indicative content
Indicative content
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
Indicative content
Stress on employees
Impact quality
Business inflexibility
Unable to maintain machinery
Strain on business resources – inventory
Sell more
Economies of scale
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.
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
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
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
5(b) Evaluate whether cooperation between management and the workforce is the most important factor in the success 12
of a car manufacturer.
2 marks for
2 marks for
2 marks for
6 marks for
Indicative content
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.
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.
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.
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.
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.
Indicative content
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
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
6(b) ‘Supply Chain Management is the most important operations factor to the success of a large internet retailer.’ 12
2 marks for
2 marks for
2 marks for
6 marks for
Indicative content
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.
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.
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.
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
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.
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.
BUSINESS 9609/12
Paper 1 Business Concepts 1 February/March 2023
1 hour 15 minutes
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 [ ].
DC (CE) 315426/1
© UCLES 2023 [Turn over
2
Section A
(b) Explain one quality an entrepreneur needs for business success. [3]
(b) Explain one way a business could extend the life of a product. [3]
Section B
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.’
BLANK PAGE
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To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge
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Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge.
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.
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.
• the specific content of the mark scheme or the generic level descriptors for the question
• the specific skills defined in the mark scheme or in the generic level descriptors for the question
• the standard of response required by a candidate as exemplified by the standardisation scripts.
Marks awarded are always whole marks (not half marks, or other fractions).
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is given for valid answers which go beyond the scope of the syllabus and mark scheme,
referring to your Team Leader as appropriate
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features are specifically assessed by the question as indicated by the mark scheme. The
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(however; the use of the full mark range may be limited according to the quality of the candidate
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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.
a DO credit answers which are worded differently from the mark scheme if they clearly
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with which they may be confused (e.g. Corrasion/Corrosion)
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each step, the correct answer(s) and the mark for each answer
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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
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Once a best-fit level statement has been identified, use the following guidance to decide on a specific
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• 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
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.
No creditable response. 0
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.
Indicative content
Indicative content
Indicative content
Indicative content
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
Indicative content
Indicative content
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
Indicative content
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
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
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.
5(b) Evaluate whether an ability to motivate others is the most important role 12
of a hotel manager
Indicative content
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
AO4 Evaluation
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
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
6(b) ‘This new airline will only succeed if it offers the lowest prices in the 12
market`. Evaluate this view.
Indicative content
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
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.
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.
BUSINESS 9609/11
Paper 1 Business Concepts 1 May/June 2023
1 hour 15 minutes
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 [ ].
DC (CJ) 316202
© UCLES 2023 [Turn over
2
Section A
(b) Explain one way that a business may reduce its variable costs. [3]
(b) Explain one reason why product development may be important to a business. [3]
(b) Explain one type of training that a business may use. [3]
Section B
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.’
BLANK PAGE
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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.
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.
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.
the specific content of the mark scheme or the generic level descriptors for the question
the specific skills defined in the mark scheme or in the generic level descriptors for the question
the standard of response required by a candidate as exemplified by the standardisation scripts.
Marks awarded are always whole marks (not half marks, or other fractions).
marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond
the scope of the syllabus and mark scheme, referring to your Team Leader as appropriate
marks are awarded when candidates clearly demonstrate what they know and can do
marks are not deducted for errors
marks are not deducted for omissions
answers should only be judged on the quality of spelling, punctuation and grammar when these features are specifically assessed by the
question as indicated by the mark scheme. The meaning, however, should be unambiguous.
Rules must be applied consistently, e.g. in situations where candidates have not followed instructions or in the application of generic level
descriptors.
Marks should be awarded using the full range of marks defined in the mark scheme for the question (however; the use of the full mark range may
be limited according to the quality of the candidate responses seen).
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should not be awarded with grade thresholds or
grade descriptors in mind.
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).
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.
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
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.
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.
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.
SEEN Indicates that content has been recognised but not rewarded.
L1, L2, L3 Indicates where the answer reaches the required standard.
No creditable response. 0
Indicative content
1(b) Explain one way that a business may reduce its variable costs. 3
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
One way to reduce variable costs is to secure cheaper raw materials. (1 mark) 1AO2
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
No creditable response. 0
Indicative content
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)
2(b) Explain one reason why product development may be important to a business. 3
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
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 )
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)
No creditable response. 0
Indicative content
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)
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
A business could use induction training to make new employees aware of its performance appraisal systems. (1 mark
)
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)
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.
Indicative content
An employee has the responsibility to perform according to the terms of contract of the employment. (1 mark 1)
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)
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.
2 marks for
2 marks for
4 marks for
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.
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.
5(b) Evaluate whether supply chain management is the most important operational activity to the success of a 12
manufacturer of electric cars.
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.
Indicative content
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)
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 )
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.
6(a) Analyse two reasons why a business should set SMART objectives. 8
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.
2 marks for
2 marks for
4 marks for
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.
6(b) ‘Ethics should always influence the human resource management (HRM) activities of a mining business.’ 12
Indicative content
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.
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 )
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?
BUSINESS 9609/12
Paper 1 Business Concepts 1 May/June 2023
1 hour 15 minutes
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 [ ].
DC (CJ) 316204/1
© UCLES 2023 [Turn over
2
Section A
(b) Explain one factor that influences the supply of a product. [3]
4 Analyse one way in which conflict between stakeholders may affect a business. [5]
Section B
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.’
BLANK PAGE
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.
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.
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.
• the specific content of the mark scheme or the generic level descriptors for the question
• the specific skills defined in the mark scheme or in the generic level descriptors for the question
• the standard of response required by a candidate as exemplified by the standardisation scripts.
Marks awarded are always whole marks (not half marks, or other fractions).
• marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond the
scope of the syllabus and mark scheme, referring to your Team Leader as appropriate
• marks are awarded when candidates clearly demonstrate what they know and can do
• marks are not deducted for errors
• marks are not deducted for omissions
• answers should only be judged on the quality of spelling, punctuation and grammar when these features are specifically assessed by the
question as indicated by the mark scheme. The meaning, however, should be unambiguous.
Rules must be applied consistently, e.g. in situations where candidates have not followed instructions or in the application of generic level
descriptors.
Marks should be awarded using the full range of marks defined in the mark scheme for the question (however; the use of the full mark range may
be limited according to the quality of the candidate responses seen).
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should not be awarded with grade thresholds or
grade descriptors in mind.
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)
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.
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
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.
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.
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.
L1, L2, L3 Indicates where the answer reaches the required standard.
No creditable response. 0
Indicative content
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
No creditable response. 0
Indicative content
2(b) Explain one way a business could extend the life of a product 3
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
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
No creditable response. 0
Indicative content
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
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.
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.
Indicative content
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 - .
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.
5(a) Analyse two ways in which accurate cost information can be used to improve business performance. 8
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.
• 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
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.
5(b)
Level AO1 Knowledge and AO2 Application AO3 Analysis AO4 Evaluation
understanding 2 marks 2 marks 6 marks
2 marks
Indicative content
AO2 Application
• Developed application of CFF to context of a restaurant business - .
• Limited application of CFF to context of a restaurant business - .
6(a) Analyse two reasons why changing a business`s objectives might affect its shareholders. 8
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.
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
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
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.
6(b)
Level AO1 Knowledge and AO2 Application AO3 Analysis AO4 Evaluation
understanding 2 marks 2 marks 6 marks
2 marks
Indicative content
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 - .
AO4 Evaluation
The following examples illustrate how the levels and marks within levels are applied. The annotations are shown in bold.
Only developed evaluative comments applied directly to the context of a niche cake manufacturing business can move to
EVAL L3 5 marks.
Only developed judgement applied directly to the context of a niche cake manufacturing business can move to EVAL L3 6
marks.
BUSINESS 9609/13
Paper 1 Business Concepts 1 May/June 2023
1 hour 15 minutes
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 [ ].
DC (CJ) 316205
© UCLES 2023 [Turn over
2
Section A
(b) Explain how one human need may be satisfied at work. [3]
Section B
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.’
BLANK PAGE
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.
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.
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.
the specific content of the mark scheme or the generic level descriptors for the question
the specific skills defined in the mark scheme or in the generic level descriptors for the question
the standard of response required by a candidate as exemplified by the standardisation scripts.
Marks awarded are always whole marks (not half marks, or other fractions).
marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond
the scope of the syllabus and mark scheme, referring to your Team Leader as appropriate
marks are awarded when candidates clearly demonstrate what they know and can do
marks are not deducted for errors
marks are not deducted for omissions
answers should only be judged on the quality of spelling, punctuation and grammar when these features are specifically assessed by the
question as indicated by the mark scheme. The meaning, however, should be unambiguous.
Rules must be applied consistently, e.g. in situations where candidates have not followed instructions or in the application of generic level
descriptors.
Marks should be awarded using the full range of marks defined in the mark scheme for the question (however; the use of the full mark range may
be limited according to the quality of the candidate responses seen).
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should not be awarded with grade thresholds or
grade descriptors in mind.
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).
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.
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
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.
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.
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.
SEEN Indicates that content has been recognised but not rewarded.
L1, L2, L3 Indicates where the answer reaches the required standard.
No creditable response. 0
Indicative content
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
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
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
No creditable response. 0
Indicative content
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
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
No creditable response. 0
Indicative content
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
One advantage to a business in segmenting a market is that it is more focused on the customer. (1 mark )
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
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.
Indicative content
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
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.
2 marks for
2 marks for
4 marks for
5 Indicative content
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.
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.
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.
5(b)
Level AO1 Knowledge and AO2 Application AO3 Analysis AO4 Evaluation
understanding 2 marks 2 marks 6 marks
2 marks
2 marks for
2 marks for
2 marks for
6 marks for
Indicative content
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
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.
6(a) Analyse two benefits to a business of using external recruitment to employ a manager. 8
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.
2 marks for
2 marks for
4 marks for
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
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 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.
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.
6(b)
Level AO1 Knowledge and AO2 Application AO3 Analysis AO4 Evaluation
understanding 2 marks 2 marks 6 marks
2 marks
2 marks for
2 marks for
2 marks for
6 marks for
Indicative content
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
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.
BUSINESS 9609/11
Paper 1 Business Concepts 1 October/November 2023
1 hour 15 minutes
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 [ ].
DC (LK) 316875/1
© UCLES 2023 [Turn over
2
Section A
(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
EITHER
(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]
BLANK PAGE
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.
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.
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.
• the specific content of the mark scheme or the generic level descriptors for the question
• the specific skills defined in the mark scheme or in the generic level descriptors for the question
• the standard of response required by a candidate as exemplified by the standardisation scripts.
Marks awarded are always whole marks (not half marks, or other fractions).
• marks are awarded for correct / valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond
the scope of the syllabus and mark scheme, referring to your Team Leader as appropriate
• marks are awarded when candidates clearly demonstrate what they know and can do
• marks are not deducted for errors
• marks are not deducted for omissions
• answers should only be judged on the quality of spelling, punctuation and grammar when these features are specifically assessed by the
question as indicated by the mark scheme. The meaning, however, should be unambiguous.
Rules must be applied consistently, e.g. in situations where candidates have not followed instructions or in the application of generic level
descriptors.
Marks should be awarded using the full range of marks defined in the mark scheme for the question (however; the use of the full mark range may
be limited according to the quality of the candidate responses seen).
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should not be awarded with grade thresholds or
grade descriptors in mind.
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)
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.
Knowledge Indicates knowledge and understanding of the concepts and issues relating to the question.
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
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.
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
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.
No creditable response. 0
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.
Indicative content
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)
Indicative content
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.
Indicative content
Partial understanding
• uses machinery / equipment / technology (1)
• involves a high quantity of machinery / equipment / technology (1)
Indicative content
Indicative content
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)
3(b) Explain one way a business can decrease its break–even level of output. 3
Indicative content
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).
4 Analyse one way that a business may be affected by a dynamic business environment. 5
Indicative content
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.
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.
Indicative content
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.
5(b) Evaluate whether primary sector businesses should use product differentiation to increase sales. 12
Indicative content
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.
AO4 Evaluation
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?
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.
6(a) Analyse two ways a business could use employee participation in the management of business activity. 8
Indicative content
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.
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.
6(b) Evaluate whether McClelland’s three needs theory is the best way to meet employee needs in a software business. 12
Indicative content
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.
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.
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.
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.
BUSINESS 9609/12
Paper 1 Business Concepts 1 October/November 2023
1 hour 15 minutes
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 [ ].
DC (CE) 316876/1
© UCLES 2023 [Turn over
2
Section A
(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
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’.
BLANK PAGE
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.
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.
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.
the specific content of the mark scheme or the generic level descriptors for the question
the specific skills defined in the mark scheme or in the generic level descriptors for the question
the standard of response required by a candidate as exemplified by the standardisation scripts.
Marks awarded are always whole marks (not half marks, or other fractions).
marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond
the scope of the syllabus and mark scheme, referring to your Team Leader as appropriate
marks are awarded when candidates clearly demonstrate what they know and can do
marks are not deducted for errors
marks are not deducted for omissions
answers should only be judged on the quality of spelling, punctuation and grammar when these features are specifically assessed by the
question as indicated by the mark scheme. The meaning, however, should be unambiguous.
Rules must be applied consistently, e.g. in situations where candidates have not followed instructions or in the application of generic level
descriptors.
Marks should be awarded using the full range of marks defined in the mark scheme for the question (however; the use of the full mark range may
be limited according to the quality of the candidate responses seen).
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should not be awarded with grade thresholds or
grade descriptors in mind.
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).
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.
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
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.
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.
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.
SEEN Indicates that content has been recognised but not rewarded.
L1, L2, L3 Indicates where the answer reaches the required standard.
No creditable response. 0
Indicative content
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)
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
One factor that influences the supply of a product is the price the product commands in the market (1 mark 1)
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)
No creditable response. 0
Indicative content
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)
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
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
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)
No creditable response. 0
Indicative content
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)
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
One benefit to a business of employing a diverse workforce is that employees experience a positive, inclusive work
environment with no discrimination. (1 mark )
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)
4 Analyse one way in which conflict between stakeholders may affect a business. 5
Indicative content
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.
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)
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.
2 marks for
2 marks for
4 marks for
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.
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.
5(b) Evaluate whether the most likely reason for the failure of a small retailer is poor management of its working 12
capital.
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.
Indicative content
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)
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)
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.
6(a) Analyse two benefits to a business of having a product with a unique selling point (USP). 8
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.
2 marks for
2 marks for
4 marks for
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.
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.
6(b) ‘Marketing is the most important factor that will affect the success of a new coffee shop’. Evaluate this view. 12
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.
Indicative content
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)
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.
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?
BUSINESS 9609/13
Paper 1 Business Concepts 1 October/November 2023
1 hour 15 minutes
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 [ ].
DC (CE) 316878/2
© UCLES 2023 [Turn over
2
Section A
(b) Explain one reason a business may choose to remain small. [3]
(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
EITHER
(b) ‘Ethics should significantly influence the marketing activities of all retail clothing businesses.’
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.’
BLANK PAGE
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.
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.
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.
• the specific content of the mark scheme or the generic level descriptors for the question
• the specific skills defined in the mark scheme or in the generic level descriptors for the question
• the standard of response required by a candidate as exemplified by the standardisation scripts.
Marks awarded are always whole marks (not half marks, or other fractions).
• marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit
is given for valid answers which go beyond the scope of the syllabus and mark scheme,
referring to your Team Leader as appropriate
• marks are awarded when candidates clearly demonstrate what they know and can do
• marks are not deducted for errors
• marks are not deducted for omissions
• answers should only be judged on the quality of spelling, punctuation and grammar when these
features are specifically assessed by the question as indicated by the mark scheme. The
meaning, however, should be unambiguous.
Rules must be applied consistently, e.g. in situations where candidates have not followed
instructions or in the application of generic level descriptors.
Marks should be awarded using the full range of marks defined in the mark scheme for the question
(however; the use of the full mark range may be limited according to the quality of the candidate
responses seen).
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should
not be awarded with grade thresholds or grade descriptors in mind.
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)
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.
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.
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
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.
No creditable response. 0
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.
Indicative content
Indicative content
Indicative content
Indicative content
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
Indicative content
Indicative content
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
Indicative content
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
Indicative content
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
5(b) `Ethics should significantly influence the marketing activities of all retail 12
clothing businesses`. Evaluate this view.
Indicative content
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
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
Indicative content
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
6(b) ‘Supply Chain Management has the most significant impact on the 12
effectiveness of a hospital’. Evaluate this view.
Indicative content
AO4 Evaluation
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.
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.