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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 will not enter into discussions about these mark schemes.
Cambridge is publishing the mark schemes for the March 2017 series for most Cambridge IGCSE,
Cambridge International A and AS Level components and some Cambridge O Level components.
This syllabus is approved for use in England, Wales and Northern Ireland as a Cambridge International Level 1/Level 2 Certificate.
1(c) Identify and explain two possible reasons why sales promotions 4
might not have been successful for TXE
1(d) Identify and explain two factors TXE should consider when deciding 6
which shops to close.
1(e) Do you think TXE should sell a wider range of products? Justify 6
your answer.
2(c) Identify and explain two advantages to QAC of having a high level of 4
inventory.
2(d) Identify and explain two ways (other than reducing inventory) that 6
QAC could use to improve its cash flow position.
2(e) Do you think QAC should change its method of production? Justify 6
your answer.
3(b) Identify two possible methods of primary market research that Ravi 2
might have used.
3(c) Identify and explain two benefits to Dipta and Ravi of acting in an 4
ethical way.
Knowledge [2 1] award 1 mark for each benefit identified
Application [2 1] award 1 mark for each explanation in context
3(d) Identify and explain two possible advantages of importing for Dipta 6
and Ravis business.
3(e) Explain two sources of finance Dipta and Ravi could use. 6
Recommend which source Dipta and Ravi should choose. Justify
your answer.
Note: Answer must be from the business viewpoint not the applicant e.g.
CV or letter of application
4(b) Identify two possible reasons why the owners of a business might 2
want it to expand.
4(d) Identify and explain one advantage and one disadvantage of the 6
Managing Directors leadership style.
Knowledge [2 1] award one mark for an advantage and one mark for
disadvantage
Application [2 1] award 1 mark for each relevant reference made to
this business
Analysis [2 1] award 1 mark for each relevant explanation
Disadvantage:
No real direction / different opinions [k] of shop managers [app]
leading to wrong decisions/ disputes [an]
Employees may not have skills / experience to make decisions [k]
leading to mistakes [an] when doing recruitment [app]
Higher costs [k] as shops arrange own inventory [app] so no
economies of scale [an]
Work might not get done in time [k] so customer complaints [app]
leading to poor reputation [an]
4(e) Explain two ways BGN could try to improve internal communication. 6
Recommend which way BGN should choose. Justify your answer.