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Mark Scheme

3UBE Business Essentials


June 2019

General Marking Guidance


• All candidates must receive the same treatment. Markers must mark the first candidate in exactly the
same way as they mark the last.

• Mark schemes should be applied positively. Candidates must be rewarded for what they have shown
they can do rather than penalised for omissions.

• Markers should mark according to the mark scheme and not their own perception of where the
grade boundaries may lie.

• There is no ceiling on achievement. All marks on the mark scheme should be used appropriately.

• All the marks on the mark scheme are designed to be awarded. Markers should always award full
marks if deserved, i.e. if the answer matches the mark scheme. Markers should also be prepared to
award zero marks if the candidate’s response is not worthy of credit according to the mark scheme.

• Where some judgement is required, mark schemes will provide the principles by which marks will be
awarded and exemplification may be limited.

• When Markers are in doubt regarding the application of the mark scheme to a candidate’s response,
their Examiner must be consulted.

3UBE 0619 © ABE 2019 1


Section A – 20 marks
(20 multiple choice questions x 1 mark)

Q Correct answer Marks


1 D - Would only lose the amount invested if the business fails 1
2 A - Venture capital 1
3 C - A possible loss depending on the occurrence of an event 1
4 B - Internal stakeholder 1
5 C - Agenda 1
6 A - Introducing a customer loyalty scheme 1
D - The difference between what a business pays it suppliers and what it receives for
7 1
selling its products
8 A - Reduction in domestic competition 1
9 B - All employees know their role in the business 1
10 C - £1200 1
11 D - Increased levels of expertise exist within the firm 1
12 A - Unanticipated costs are incurred 1
13 A - Scientific 1
14 B - Lower prices 1
15 C - Good practice is shared across departments 1
16 B - Create skill shortages in a business 1
17 D - Continuous improvement 1
18 A - Customer relationship management 1
19 A - Empowered 1
20 C - How many and what type of staff are required 1

3UBE 0619 © ABE 2019 2


Section B – 80 marks
(6 short answer questions x 2 marks)
(2 short answer questions x 4 marks)
(4 short answer questions x 5 marks)
(4 extended writing questions x 10 marks)

21 (2 marks)
Outline ONE impact that health and safety regulations may have on a restaurant.

Q Indicative Content Total


21 Possible impacts include:
• The need to retrain workers.
• The need to change working habits.
• The need to redesign kitchens.
• Increased costs.

Other relevant material should be credited. 2


Mark Allocation Guidance
1 mark for the identification of an impact that health and safety regulations may have on a
restaurant, and 1 mark for some kind of appropriate development of the impact in context.

22 (2 marks)
Describe the term business objective.

Q Indicative Content Total


22 A ‘business objective’ is a stated plan or action that a business will take in order to achieve
its aims.

Other relevant material should be credited. 2


Mark Allocation Guidance
2 marks for an accurate definition. If an accurate definition is not given award 1 mark for an answer
that suggests the candidate has some understanding of the term. E.g. It is a plan or target.

3UBE 0619 © ABE 2019 3


23 (2 marks)
Outline ONE possible benefit to a hotel of allowing guests to make reservations using an app.

Q Indicative Content Total


23 Possible benefits include:
• Reduces the number of phone calls to hotels.
• Reservations can be made at any time.
• Reduction in the number of staff required.
• Helps overcome language barriers.

Other relevant material should be credited. 2


Mark Allocation Guidance
1 mark for the identification of a benefit a hotel from guests using an app for reservations and 1
mark for some kind of appropriate development of the benefit in context.

24 (2 marks)
Describe the term export.

Q Indicative Content Total


24 The term ‘export’ refers to a good sold to another country that leads to payments to the
UK.

Other relevant material should be credited. 2


Mark Allocation Guidance
2 marks for an accurate definition. If an accurate definition is not given award 1 mark for an answer
that suggests the candidate has some understanding of the term. E.g. Selling to other countries.

25 (2 marks)
Describe the term social responsibility.

Q Indicative Content Total


25 Social responsibility refers to the belief that a business should act ethically in order to
benefit society at large.

Other relevant material should be credited. 2


Mark Allocation Guidance
2 marks for an accurate definition. If an accurate definition is not given award 1 mark for an answer
that suggests the candidate has some understanding of the term. E.g. caring for the environment.

26 (2 marks)

3UBE 0619 © ABE 2019 4


Outline ONE consumer protection law that affects a chocolate producer.

Q Indicative Content Total


26 Possible consumer protection laws include:
• Sale of Goods Act.
• Trade Description Act.
• Supply of Goods and Services Act.
• Data Protection Act.

E.g. Sale of Goods Act (1 mark). This means that chocolates sold must be of satisfactory
quality (1 mark).

Other relevant material should be credited. 2


Mark Allocation Guidance
1 mark for the identification of a valid consumer protection law and 1 mark for an appropriate
development in context.

27 (4 marks)
Explain TWO benefits of setting a dress code in the workplace.

Q Indicative Content Total


27 Possible benefits might include:
• Customer impressions.
• Employee ease.
• Visual uniformity.
• Problem avoidance.

Other relevant material should be credited. 4


Mark Allocation Guidance
1 mark for the identification of a valid benefit and 1 mark for an appropriate development in
context.

28 (4 marks)

3UBE 0619 © ABE 2019 5


Explain TWO reasons why a service level agreement is important to a business.

Q Indicative Content Total


28 Possible reasons might include:
• Customer commitments.
• Key performance indicators for the customer service.
• Key performance indicators for the internal organisations.
• The price of non-conformance.

Other relevant material should be credited. 4


Mark Allocation Guidance
1 mark for the identification of a valid reason and 1 mark for an appropriate development in
context.

29 (5 marks)
Explain the benefits to a business of having a flat organisational structure.

Q Indicative Content Total


29 Possible benefits include:
• Speeds up communication.
• Quicker to make decisions.
• Respond to changes in the market faster.
• Team spirit can be improved.

Other relevant material should be credited. 5


Mark Allocation Guidance
Up to 3 marks for identification of any reason.
Up to 5 marks for in - depth explanation of at least two reasons.

30 (5 marks)
Explain why businesses often insist that emails must always be in an appropriate format.

Q Indicative Content Total


30 Possible reasons include:
• Poor spelling/grammar/punctuation can create a poor impression of the business.
• Including a title in the subject heading informs the customer what the email is about.
• Emails written in capital letters can be considered as impolite.
• Bold or underline could be used to emphasise important information.

Other relevant material should be credited. 5


Mark Allocation Guidance
Up to 3 marks for identification of any reason.
Up to 5 marks for in - depth explanation of at least two reasons.

3UBE 0619 © ABE 2019 6


31 (5 marks)
Explain the benefits to a business of offshoring.

Q Indicative Content Total


31 Potential benefits include:
• Business Growth.
• Access to Staff.
• Greater Availability.
• Reduced Risk.
• Control.

Other relevant material should be credited. 5


Mark Allocation Guidance
Up to 3 marks for identification of any reason.
Up to 5 marks for in - depth explanation of at least two reasons.

32 (5 marks)
Explain the potential benefits from international trade.

Q Indicative Content Total


32 Potential benefits include:
• Opportunities for economies of scale.
• Rising living standards and a reduction in poverty.
• Efficiency gains from innovation.
• Access to new technology.
• Increased competition to domestic monopolies.

Other relevant material should be credited. 5


Mark Allocation Guidance
Up to 3 marks for identification of any reason.
Up to 5 marks for in - depth explanation of at least two reasons.

3UBE 0619 © ABE 2019 7


33 (10 marks)
Discuss the advantages and disadvantages to a business of using retained profit to fund the
development of new products.

Q Indicative Content Total


33 Reasons why using retained profit is advantageous:
• Cheaper than other sources of finance such as bank loans.
• It is quicker than using other sources of finance.
• Does not involve diluting ownership.
• Involves limited/no risk.
• Other sources of finance may not be available/too risky.

Possible disadvantages:
• Does the company have enough retained profit?
• The retained profits could be put to better use elsewhere. E.g. advertising.
• Shareholders may want higher dividends instead.
• Retained profit takes time to accumulate.

Other relevant material should be credited. 10


Mark Allocation Guidance
Either 1 mark for identification up to a maximum of 5 marks.
Or 2 – 3 marks for discussion up to a maximum of 10 marks.

34 (10 marks)
Discuss the advantages and disadvantages of operating a business as a partnership.

Q Indicative Content Total


34 Possible advantages include:
• No legal formalities.
• No need to publish any accounts that need to be seen by the public.
• Each partner can specialise.
• Greater scope to raise finance than a sole trader.
• Sharing of work.

Possible disadvantages include:


• If there is disagreement, then there may be lack of continuity in how the business
develops and grows.
• Each partner has unlimited liability.
• Given the maximum number of partners is 20, this can limit the volume of funds that
can be raised.
• Any decision made by one partner is legally binding on all the others.
• Partnerships have unincorporated status so customers can sue partners.

Other relevant material should be credited. 10


Mark Allocation Guidance
Either 1 mark for identification up to a maximum of 5 marks.
Or 2 – 3 marks for discussion up to a maximum of 10 marks.

3UBE 0619 © ABE 2019 8


35 (10 marks)
Discuss the likely impacts on a business of providing free internet access in its theme parks and hotels.

Q Indicative Content Total


35 Positive impacts of free internet access:
• Makes staying at the theme parks and hotels more attractive to guests.
• Allows guests to update their plans whilst in the parks increasing guest satisfaction.
• Creates a positive, modern impression of the business with the guests.
• Improves efficiency of communication at the theme park and hotel.

Possible sources of balance:


• Increased business costs.
• Difficult to maintain high levels of access speed over such a large area.
• Technical issues if the internet goes down.
• The impact on guests who do not have correct equipment/knowledge.

Other relevant material should be credited. 10


Mark Allocation Guidance
Either 1 mark for identification up to a maximum of 5 marks.
Or 2 – 3 marks for discussion up to a maximum of 10 marks.

36 (10 marks)
Discuss the advantages and disadvantages of using a Gantt chart in project management.

Q Indicative Content Total


36 Possible benefits include:
• It creates a picture of complexity.
• It organises your thoughts.
• It demonstrates that you know what you’re doing.
• It (should) help you to set realistic time frames.
• It can be highly visible.

Possible drawbacks include:


• They can become overly complex.
• The size of the bar does not indicate the amount of work.
• They need to be constantly updated.
• Difficulty in fitting onto one piece of paper.

Other relevant material should be credited. 10


Mark Allocation Guidance
Either 1 mark for identification up to a maximum of 5 marks.
Or 2 – 3 marks for discussion up to a maximum of 10 marks.

3UBE 0619 © ABE 2019 9