Paper 1 MS

Mark Scheme
Sample assessment materials

for first teaching
September 2017
International GCSE in Business
(4BS1/01)
Paper 1: Investigating small
businesses
Pearson Edexcel International GCSE in Business – Sample Assessment Materials 21

Issue 1 – November 2016 © Pearson Education Limited 2016
Question Answer Mark
number
1(a) (i) AO1 1 mark
B Price
(1)

number
1(a) (ii) AO1 1 mark
D Delegation
(1)

number
1(a) (iii) AO1 1 mark
C Personal satisfaction
(1)

number
1(a) (iv) AO1 1 mark
A Net cash flow

(1)

number
1(a) (v) AO2 1 mark
B -200 000 Tks

(1)

number
1(a) (vi) AO2 1 mark
D 15 500 Tks
(1)

number
1(b) AO1 1 mark
Award 1 mark for a correct definition of revenue.
Price multiplied by quantity sold (1) or income from sales (1).

(1)
22 Pearson Edexcel International GCSE in Business – Sample Assessment Materials

number
1(c) AO1 1 mark
Award 1 mark for a correct definition of variable costs.
Costs that change when output changes (1).

(1)

number
1(d) AO2 1 mark
Award 1 mark for a correct reason in the context of the business.
Rent on restaurants (1).

Salaries of chefs (1).
Advertising of restaurants (1).
Interest on bank loans to buy cooking equipment (1).
Insurance of restaurants (1).
Accept any other appropriate response. (1)
Question Answer Additional guidance Mark

number
1(e) AO2 2 marks Award 1 mark for correctly
substituting numbers into
(4m Tks/16 Tks) × 100 formula.
Answer: 25% Award full marks for correct

numerical answer without
working. (2)

number
1(f) AO1 3 marks
Award 1 mark for identification of a disadvantage, plus 2 further

marks for explaining how this disadvantage will affect a business
for a maximum of 3 marks.
One disadvantage is that it will force a business to lower its prices

(1). Therefore, the business will have to accept lower profit
margins (1). As a result, the business will have less retained profit
(1).
NB Answers that list more than one disadvantage with no

explanation will get a maximum of 1 mark.

Question Indicative content
number
1(g) AO2 (3 marks)/AO3 (3 marks)
AO2
 The restaurant group should prepare financial documents because it is a
legal requirement and it will need to pay tax to the Bangladesh government
on its profits.
 Banks would want to see the restaurant group’s statement of
comprehensive income and statement of financial position in order to
determine whether it should give Haji Biriyani a loan or allow its overdraft
to be increased.
AO3
 Without a statement of comprehensive income, the business may not end
up paying accurate levels of tax. This could lead to Haji Biriyani being
fined. This would increase cash outflows and increase the risk of
business failure.
 Therefore, without proper financial documents Haji Biriyani would find it
very difficult to access external sources of finance. This would reduce Haji
Biriyani’s liquidity position and make it harder to fund new projects like
opening up further restaurants in Bangladesh.
Level Mark Descriptor

0 No rewardable material.
Level 1 1–2  Limited application of knowledge and understanding of business
concepts and issues to the business context. (AO2)
 Attempts to deconstruct business information and/or issues,
finding limited connections between points. (AO3)
Level 2 3–4  Sound application of knowledge and understanding of business
concepts and issues to the business context, although there
may be some inconsistencies. (AO2)
 Deconstructs business information and/or issues, finding
interconnected points with chains of reasoning, although there
may be some logical inconsistencies. (AO3)
Level 3 5–6  Detailed application of knowledge and understanding of
business concepts and issues to the business context
throughout. (AO2)
detailed interconnected points with logical chains of reasoning.
(AO3)

number
2(a) AO2 1 mark
Award 1 mark for any valid piece of information in the context of

the business.
Qualifications that are food/hygiene-related (1).

Experience of working in a restaurant (1).
References from previous owners of restaurants (1).

number
2(b) AO2 1 mark
Award 1 mark for any valid piece of information in the context of

the business.
Hours worked in the kitchen (1).

Remuneration received for working in the kitchen (1).
Food preparation qualifications required (1).
Duties involved in the kitchen (1).

number
2(c) AO1 3 marks
Award 1 mark for identification of a reason, plus 2 further marks

for explaining why this reason may cause a business to write a
person specification, for a maximum of 3 marks.
The business wants to make sure they employ the right person
(1), therefore there will be fewer complaints (1). As a result, the
business is more likely to have higher levels of customer
satisfaction (1).
NB Answers that list more than one reason with no explanation

will get a maximum of 1 mark.

number
2(d) AO1 3 marks
Award 1 mark for identification of a method, plus 2 further marks

for explaining how this method may motivate employees, for a
maximum of 3 marks.
Giving employees a bonus (1), therefore employees will feel

valued by the business (1). As a result, the employees will satisfy
their esteem needs in Maslow’s hierarchy (1).
NB Answers that list more than one method with no explanation

will get a maximum of 1 mark.

number
2(e) AO1 3 marks
Award 1 mark for the identification of a benefit to the business of

having motivated employees and a further 2 marks for an
explanation of the benefit, up to a maximum of 3 marks.
Employees will become more loyal (1), therefore they are less
likely to leave the business (1). As a result, the business will not
have to spend as much employing new employees (1).
NB Answers that list more than one benefit with no explanation
will get a maximum of one mark.

number
2(f) AO2 (3 marks)/AO3 (3 marks)/AO4 (3 marks)
AO2
 Option 1 – This means that each spiced curry dish will generate
more revenue.
 Option 2 – This means that each chef and waiter will be paid less money,
which reduces the fixed costs of the business.
AO3
 Option 1 – Therefore, the total costs of the business will be paid off faster,
allowing the break-even point to decrease.
 Option 2 – Therefore, with lower fixed costs, the total costs of the business
will fall, allowing the revenue of the business to pay off the total fixed costs
faster and resulting in a lower break-even point.
AO4
 Option 1 – However, raising the price will make customers less likely to
want to visit the restaurant, so it is possible that demand could fall rather
than increase, resulting in less revenue and a higher break-even point.
 Option 2 – However, the motivation of the chef and waiters may decrease,
resulting in lower-quality food and poor customer service. This may cause
potential customers to go to rival restaurants, resulting in lower revenue
and a higher, rather than lower, break-even point.
 Makes a judgement, providing a simple justification based on
limited evaluation of business information and issues relevant to
the choice made. (AO4)
 Makes a judgement, providing a justification based on sound
evaluation of business information and issues relevant to the
choice made. (AO4)
throughout. (AO2)
(AO3)
 Makes a judgement, providing a clear justification based on a
thorough evaluation of business information and issues relevant
to the choice made. (AO4)

number
3(a) AO1 1 mark
Award 1 mark for a correct definition of average total cost.
Where average total costs (ATC)/unit costs fall when output

increases (1) or where unit costs fall when output increases (1).
(1)

number
3(b) AO2 2 marks
Award 1 mark for identifying a reason why a restaurant group,

such as Haji Biriyani is part of the tertiary sector of the
Bangladesh economy, plus 1 further mark for linking it to the
context of the question.
Haji Biriyani serves food (1). This means that it provides a service
to consumers (1).
NB Do not accept reasons that would not be appropriate for the

context of Haji Biriyani.

number
3(c) AO2 2 marks Award 1 mark for correctly
20 000 + (400 × 10) formula.
Answer: 24 000 Tks Award full marks for correct

working. (2)

number
3(d) AO2 (3 marks)/AO3 (3 marks)
AO2
 This means that the restaurant group’s current liabilities are not covered by
the current assets minus inventory, such as stocks of rice.
 For a restaurant group 0.9 is not a poor acid-test ratio since stocks of food
will be turned into meals and sold for cash very quickly.
AO3
 Therefore, Haji Biriyani may have liquidity problems and, as a result, the
restaurant group may be at risk of over-expansion.
 Therefore, despite the acid-test ratio being below 1, this does not mean
that Haji Biriyani is facing cash flow problems: it could just mean they are
being efficient with their use of working capital.

throughout. (AO2)
(AO3)

number
3(e) AO2 (3 marks)/AO3 (3 marks)/AO4 (3 marks)
AO2
 Option 1 – Customer satisfaction will show the restaurant owners how
happy customers are with the food quality and the speed of service.
 Option 2 – A high level of profit will show the owners of the restaurant that
they can make food at a cost which is lower than the price that they can
sell it for.
AO3
 Option 1 – Therefore, customer satisfaction would be a useful measure of
success since it would tell the business about the strength of its brand and
how happy customers are with the product. This should then lead to higher
revenues and profit.
 Option 2 – Therefore, this would be a useful measure of success since it
means that the business will not fail financially and returns are being
generated for its owners.
AO4
 Option 1 – However, customer satisfaction is hard to measure accurately.
If the restaurant uses questionnaires it is possible that customers may
mislead the restaurant by filling them in inaccurately. This could result in
the business being less successful than it first thought.
 Option 2 – However, although the maximisation of profit in the short term
may suggest that the business is successful, it may not reflect long-term
success, especially if costs are cut to maximise profit, such as purchasing
poorer-quality raw materials. This could damage the restaurant’s brand
and cause customers to dine at rivals’ restaurants.

 Makes a judgement, providing a simple justification based on
limited evaluation of business information and issues relevant to
the choice made. (AO4)
 Makes a judgement, providing a justification based on sound
evaluation of business information and issues relevant to the
choice made. (AO4)
throughout. (AO2)
(AO3)
 Makes a judgement, providing a clear justification based on a
thorough evaluation of business information and issues relevant
to the choice made. (AO4)

number
4(a) AO2 2 marks Award 1 mark for correctly
11 000 000 × 1.2 formula.
Answer: 13 200 000 Tks Award full marks for correct

working. (2)

number
4(b) AO2 (3 marks)/AO3 (3 marks)
AO2
 This means that any loans that Haji Biriyani take out from banks to fund
the fourth restaurant will become more expensive.
 People living in Dhaka will now have to pay more money on their loans,
resulting in less spare income being available to allow them to visit
restaurants.
AO3
 Therefore, the fixed costs of the business will rise. As a result, more
revenue will be required to break even, resulting in a lower break-even
point for the restaurant group.
 Therefore, demand for Haji Biriyani’s food will decrease, leading to lower
revenues and falling cash inflows. This would increase the risk of
business failure.

throughout. (AO2)
(AO3)

number
4(c) AO1 (3 marks)/AO2 (3 marks)/AO3 (3 marks)/AO4 (3 marks)
AO1
 Home delivery would result in increased customer satisfaction.
 Home delivery could allow Haji Biriyani to move into the takeaway market.
AO2
 This is because customers can now place their orders over the internet and
the food will be delivered to their homes.
 This market is bigger since customers no longer have to travel from
inconvenient parts of Dhaka to eat Haji Biriyani’s food.
AO3
 Therefore, this means customers no longer have to travel across Dhaka,
wasting time. As a result, customers may be willing to pay more for the
home delivery service, increasing the profits of the business.
 As a result, the potential demand will increase significantly, resulting in
much higher potential revenues which should lead to higher profits.
AO4
 However, Haji Biriyani is a restaurant not a takeaway and, therefore,
customers may enjoy dining in the restaurant, a luxury which they would
not get from a home delivery service. As a result, the new service may
simply increase costs but not improve revenues by as much, resulting in
lower, rather than higher, profits.
 However, the takeaway market may be much more competitive than the
restaurant market and, with many other restaurants also offering a home
delivery service, the extra revenues generated by Haji Biriyani may not be
high. Therefore, with the extra costs of employing drivers to deliver the
food, profits may be lower in the short term until customers start to
become loyal to the new service.

Level 1 1–4  Demonstrates elements of knowledge and understanding of
business concepts and issues, with limited business terminology
used. (AO1)
 Limited application of knowledge and understanding of business
 Draws a conclusion, supported by generic assertions from
limited evaluation of business information and issues. (AO4)
Level 2 5–8  Demonstrates mostly accurate knowledge and understanding of
business concepts and issues, including appropriate use of
business terminology in places. (AO1)
 Sound application of knowledge and understanding of business
 Draws a conclusion based on sound evaluation of business
information and issues. (AO4)
Level 3 9–12  Demonstrates accurate knowledge and understanding of
business concepts and issues throughout, including appropriate
use of business terminology. (AO1)
 Detailed application of knowledge and understanding of
throughout. (AO2)
(AO3)
 Draws a valid and well-reasoned conclusion based on a
thorough evaluation of business information and issues. (AO4)


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Mark Scheme

Sample assessment materials

Pearson Edexcel International GCSE in Business – Sample Assessment Materials 21

Question Answer Mark

Question Answer Mark

Question Answer Mark

A Net cash flow

Question Answer Mark

B -200 000 Tks

Question Answer Mark

Question Answer Mark

Award 1 mark for a correct definition of revenue.

Price multiplied by quantity sold (1) or income from sales (1).

22 Pearson Edexcel International GCSE in Business – Sample Assessment Materials

Award 1 mark for a correct definition of variable costs.

Costs that change when output changes (1).

Question Answer Mark

Award 1 mark for a correct reason in the context of the business.

Rent on restaurants (1).

Accept any other appropriate response. (1)

Question Answer Additional guidance Mark

Answer: 25% Award full marks for correct

Question Answer Mark

Award 1 mark for identification of a disadvantage, plus 2 further

One disadvantage is that it will force a business to lower its prices

NB Answers that list more than one disadvantage with no

Accept any other appropriate response. (3)

Pearson Edexcel International GCSE in Business – Sample Assessment Materials 23

Level Mark Descriptor

24 Pearson Edexcel International GCSE in Business – Sample Assessment Materials

Award 1 mark for any valid piece of information in the context of

Qualifications that are food/hygiene-related (1).

Accept any other appropriate response. (1)

Question Answer Mark

Award 1 mark for any valid piece of information in the context of

Hours worked in the kitchen (1).

Accept any other appropriate response. (1)

Question Answer Mark

Award 1 mark for identification of a reason, plus 2 further marks

NB Answers that list more than one reason with no explanation

Accept any other appropriate response. (3)

Pearson Edexcel International GCSE in Business – Sample Assessment Materials 25

Award 1 mark for identification of a method, plus 2 further marks

Giving employees a bonus (1), therefore employees will feel

NB Answers that list more than one method with no explanation

Accept any other appropriate response. (3)

Question Answer Mark

Award 1 mark for the identification of a benefit to the business of

26 Pearson Edexcel International GCSE in Business – Sample Assessment Materials

Pearson Edexcel International GCSE in Business – Sample Assessment Materials 27

Award 1 mark for a correct definition of average total cost.

Where average total costs (ATC)/unit costs fall when output

Question Answer Mark

Award 1 mark for identifying a reason why a restaurant group,

NB Do not accept reasons that would not be appropriate for the

Accept any other appropriate response. (2)

Question Answer Additional guidance Mark

Answer: 24 000 Tks Award full marks for correct

28 Pearson Edexcel International GCSE in Business – Sample Assessment Materials

Level Mark Descriptor