OCR GCSE Business Studies- Business & People Unofficial Mark SchemeWatch
Q1.a)i) Give one advantage and one disadvantage of Gary operating as a sole trader.
-Keep all of the profit
-Don't have to publish accounts
-Has unlimited liability
"Gary has unlimited liability, so his assets aren't protected from re-possession if the business goes bankrupt"
Q1ii) [Income Tax] 
Q1b)i) Give a reason why Gary may have chosen to become a private limited company.
"Will gain limited liability"
"Easier to raise capital"
Q1b)ii) Give two reasons why becoming bigger will benefit the business 
-Will gain economies of scale
-More money to recruit specialist managers
Q1.c)i) Assess which leadership style Gary should use. 
-Advantages of an autocratic leadership style:
-Quick decison making
-Employees aware of where they stand in terms of heirarchy
Disadvantages of " " " ":
-Employees will feel undervalued thus de-motivated
-Business will miss out on new ideas
Offer an alternative leadership style (e.g democratic):
-Gives employees a voice, more motivated
-More opportunity for new ideas and decisions
-Slower decisions made
-Heirarchy may be overseen meaning miscommunication
(Allow for indicative content)
EVALUATE- Revert back to context
Q1.d) Chose location using fig.1 
-Lower source of employment as low population
-Scarce area so demand likely low
Assess affect on a business of this context.
-Richer source of employment
-Busier area so demand likely higher
a)ii) What recruitment method should be used?
EXPLAIN what this will show the business
a)iii)Explain what is meant by 'continuity'
When an owner dies, the business can still operate as they are a seperate legal entity to the business as the ]y have become incorporated
b)i)What are the likely benefits to conforming to legal recruitment laws? 
-Cannot be sued if they do not break the law
bi) Asses the benefits of an employee being part of a trade union. 
-Strength in numbers
bii) How might the local residents' interests confilict with interests of shareholders.
"Shareholders want profit, residents want less congestion, in order to reduce congestion, output will likely slow down resulting in higher costs and a lower profit." biii)Asses the benefits and limitations of new developments in technology.
biv)Assess the advantages of lateral integration. 
-Increase product range