AQA GCSE Business Unit 2 Unofficial Mark Scheme!

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Report Thread starter 2 years ago
As business is, there can be a whole range of answers. For the longer ones your answers would be graded using different levels e.g. for a 6 marker on two advantages of something

Level 1 would be 1 mark where you state an advantage
Level 2 is 2-3 marks. 2 marks is given to an advantage which is extended but to get the third mark you'd relate it to the specific scenario.

There were three case studies.

One was Kiddie-Winks, one was BRM a construction company and the other was SS LTD a sail company.

9 Markers:

Kiddie Winks: Two options either open new rides to attract teenagers or use competitive pricing

New rides:


- They attract a new market and differentiate themselves from the competition as it states in the case study that a similar amusement park as opened nearby which similar prices
- Not in relation to the case study but expanding their services would spread the risks i.e if one market declines, they have the other one to rely on- not all of their money is invested into one particular market segment


- It states that they have been suffering from falling profits so they may not have the money as it'll require a huge upfront cost
- Expanding the park potentially requires more staff (could mention it in relation to the case study as the business struggles to retain the temporary staff it has, recruitment costs can become extortionate, talk about maybe having to recruit new supervisors meaning it would incur new costs)
- Another disadvantage is that it does not guarantee success, expanding their park doesn't mean the competition goes away (they will still have to compete with the other business)

Competitive pricing:


- One of their main problems seem to be falling profits which could be due to the nearby amusement park, the pricing strategy allows them to compete and potentially gain customers
- Attract a variety of people if the price point becomes more affordable


- Competitive pricing doesn't guarantee customers, they could still have a lack of customers
- The sales effect achieved may be short-term but to gain profit, they would need customers coming back repeatedly and not on a one-off occasion
- Talk about how since they have low profits, it may not be financially viable to charge a lower price and the other park may be able to undercut them

BRM: Acting ethical through environmental objectives


- They look good, could benefit from positive media coverage
- Being ethical is a USP = charge higher prices
- Other construction companies have been criticised for being unethical, so BRM can differentiate themselves from the firms and stand out


- Being ethical would be expensive. Responsibly disposing waste would incur costs
- It mentions that each project takes several months but if they became environmentally friendly then it could take longer
- If they become an ethical business and somewhere along the line they effectively screw up, they would have negative media attention which equals bad PR

For the sail company, you were asked about whether employees should be in charge of checking quality or a stricter management approach to improve quality

Employees in charge:


- They feel a bigger part of the business as they are given more responsibility, feeling values leads to increased motivation which could increase productivity meaning they make sailboards which are of a higher quality
- You could talk about how this is essentially a form of kaizen production and that allowing employees to think about what they're producing and its quality, will mean that they become more aware


- Does not solve the problem as it is believed the quality has declined due to boredom, checking quality will not make them less bored
- Giving employees too much responsibility may not work out as they can become complacent, many will not be motivated by increased responsibility.

Stricter management:


- Being stricter means you are in more control and more assertive, if you are strict and you strive for better quality- your employees are most likely going to follow your command
- Being stricter prevents employees becoming complacent as they will realise that they cannot get away with making mistakes


- Case study does state that the business has rapidly expanded in the last 3 years and that employees are believed to be bored, suggesting that the relaxed management style is not the problem but the repetitive nature of the work is
- A common sense one is that many people may not respond well as a stricter management style can put more pressure and stress on employees.

Questions within the paper not organised by case study:

List two stakeholders of .... ( 2 marks): Customers, local community,government, employees, shareholders etc.

Acid test ratio (3 Marks) 15/25 which is 0.6

2 benefits of becoming bigger (6 marks, 3 marks for each):
- Economies of scale: as the business gets bigger, the cost per unit decreases meaning the goods are produced at a cheaper rate which can lead to an increase in profits
- Availability of finance: banks are more likely to give loans out often at lower interest rates to bigger businesses, as they have a proven financial history

Definition of a balance sheet (2 marks): A balance sheet shows the value of a business at a particular time. A balance sheet shows what the business owns and owes

What is cost-plus pricing? (2 marks I think)

When a business prices their product so that there is enough made to cover the costs but price it at a specific percentage mark-up to make a 'plus' which is essentially profit

2 disadvantages of employees appraisal (4 marks I think)

- Time consuming for managers, could be spent on better stuff
-Employees can become stressed about their improvements to the point where they become unproductive
-If it isn't done properly, it'll have an adverse effect where the employees feels that they are being personally attacked

Why should the shareholders be worried about the current ratio (4/5 marks)?

- It decreased from 1.25 to 0.6 which means it has basically halved
-If the current ratio is under 1 which it is, the company may have trouble with meeting its current liabilities
Badges: 12
Report 2 years ago
welll it's nice to know I failed that
Badges: 0
Report 2 years ago
your answers for the balance sheet and current ratio questions aren't specific enough IMO, you should be talking about how the balance sheet shows how "liquid" the business is, and that the current ratio means that they will have to sell their assets in order to pay of any current liabilities. Also, some of your answers didnt link to the case study even though they should have.

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