Questions

Q1.

Apple uses a variety of advertising methods when promoting its products such as iPhone, iMac,
Apple Music and Apple's mobile payment system called Apple Pay. However, over the past 12
months Apple has identified that consumer preferences on advertising have changed and has
now increased its spend on television advertising by $118 million.

Apple is planning to expand Apple Pay into India but it is having problems convincing the 30 to
50 year old age group to use the service. Apple has chosen to use Facebook and YouTube to
target this age group, as they are the most popular social media networks. However, Apple is
worried that only 14% of India's population uses social media regularly.

Evaluate how effective social media may be in convincing the 30 to 50 year old age group to use
Apple Pay. You should use the information provided as well as your knowledge of commerce.

(12)

(Total for question = 12 marks)

Q2.

Aztec Diamond Equestrian (ADE) sells high quality riding clothes including leggings and riding
jacket from a UK website. DHL delivers the clothes to customers in the Middle East, Asia and
Northern Africa.

DHL was founded in 1969 and is now an experienced international delivery service with a
product reputation. DHL uses a combination of air, rail and mail to deliver ADE packages.

Jordan McCabe spent her childhood riding horses in competitions. She founded ADE after
inheriting a small sum of money from her grandmother. This allowed her to use only this money
to launch the horse riders fashion brand that she had dreamed about. The business now has
over £1m in sales.

Evaluate how the use of her own capital to launch her business has helped Jordan McCabe to
become so successful. You should use the information provided and your own knowledge of
commerce.

(12)

(Total for question = 12 marks)

Q3.

Samsung is a major worldwide manufacturer of televisions. It developed a new ultra-high

definition (UHD) television that in 2019 led to a 20% increase in sales. By the end of 2020, 53%
of all televisions made by Samsung were UHD.

Samsung sells its televisions to large international retailers who have the televisions delivered to
their own Regional Distribution Centres (RDC). Samsung factories are located near to the RDC
for quick deliveries.

In 2019 Samsung's inventory turnover was 5, meaning it sold its inventory at least five times in
one year.

Samsung supports its retailers by offering 30 days' trade credit and up to 5% discount for early
payment.

Evaluate how Samsung's trade credit terms help it achieve more orders from retailers. You
should use the information provided and your own knowledge of commerce in your answer.

(Total for question = 12 marks)

Q4.

HSBC Holding Plc is a British multinational banking and financial services business. It is
the world's seventh largest bank.

It has recently started an advertising campaign aimed at persuading customers

to change banks. HSBC advertisements show famous people using its products.
Recently, Lloyds Bank, its largest rival, has started using competitive advertising.

HSBC's popularity in the Asian market has been restricted due to the increased use of
social media by its competitors, such as Chinese and Japanese banks.

HSBC wants to increase its popularity in Asian markets. It plans to use social media to
advertise its goods.

Evaluate how social media can be used by HSBC to improve its popularity in Asian
markets. You should use the information provided as well as your knowledge of commerce.

(Total for question = 12 marks)

Q5.

Read the following extract before answering the question.

Bragi is keen to sell its products in Germany and overseas. It uses a range of methods to identify
customer needs, especially social media.

Evaluate how social media can help Bragi to identify customer needs. You should use the
information provided as well as your knowledge of commerce.

(12)

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(Total for question = 12 marks)

Q6.

FTLO Travel sells holidays online to customers around the world. It targets 25–39 year-olds,
many of whom are travelling alone. It offers exciting international travel experiences to groups
of people who have similar interests and a desire to explore new places.

Users of the FTLO Travel website fill out a questionnaire that identifies their travel interests.
FTLO Travel then uses this information to plan trips. It puts these planned trips on its website so
that anyone interested can book them. FTLO Travel emails details of these trips to selected
potential customers.

FTLO Travel customers book their travel on its website. They must use a credit card to pay for
their booking.
FTLO Travel customers may have been attracted to its website having visited Facebook,
Pinterest, Instagram, LinkedIn or by their friends. Once on the website, potential customers can
enjoy videos and read reviews of past trips.

In 2022, sales of trips had gone up over 200% compared with the number of trips sold in 2019.

Evaluate how social media helps FTLO Travel to improve its sales. You should use the
information provided and your own knowledge of commerce in your answer.

(12)

(Total for question = 12 marks)

Q7.

Dauphinette was founded in 2018 by Olivia Cheng. She designs and produces unique hand
painted clothing made in New York from previously used materials. The range also includes
distinctive handbags and jewellery using preserved flowers and fruits. She uses recycled
materials to pack all orders.

Olivia Cheng considers major fashion events to be very important for her brand. She takes part
in major trade fairs such as the New York fashion show. This is held every year during New York
Fashion Week which is attended by buyers and media. She displays her clothing at exhibitions
including the New York Metropolitan Museum Art Gala.

Evaluate how taking part in trade fairs and exhibitions helps Dauphinette to promote its brand.
You should use the information provided and your own knowledge of commerce in your answer.

(Total for question = 12 marks)

Q8.

The global market for construction toys was worth $7 260 million in 2020 and is forecast to grow
annually by 4% up to 2023. Meccano makes a build-your-own robot toy, 'The Meccanoid'.

Meccano was aware of the potential growth in the construction toys market many years earlier
and in 2013 it invested in new technology for its existing French factory at a cost of €2 million.
The aim was to increase production of construction toys over the next 10 years to meet an
expected increase in demand.

The London Toy Fair is a major annual event in Europe. However, it is smaller than some others
such as the Hong Kong Toy Fair. Meccano launched the 4 ft tall 'The Meccanoid' robot at the
London Toy Fair first. It was programmed to interact with all the buyers by moving about,
making jokes and gazing up at them with enormous, curious eyes.

Evaluate how the London Toy Fair may have helped Meccano achieve exports of 'The
Meccanoid'. You should use the information provided and your own knowledge of commerce in
your answer.

(12)

(Total for question = 12 marks)

Q9.

Samsung is a producer that offers a wide range of electronic devices ranging from smartphones
through to washing machines. On its most expensive products it offers consumers the
opportunity of a '100-day change of mind guarantee'. This is where the consumer can return the
product if they are not happy within 100 days for a full refund. However, this is only possible if
the product is purchased through its website rather than a retailer.

Samsung has a range of products called connected living. This range includes refrigerators,
cookers, lights, televisions and even vacuum cleaners. These are all linked via Wi-Fi and can be
controlled by a smartphone or simply by voice. Samsung is planning to increase its persuasive
advertising to promote its connected living range to improve sales turnover.

The need for the connected living range was designed around the hectic life of people. Samsung
made devices to allow the family to focus on being together and making life easier and more
enjoyable.

Evaluate how using persuasive advertising could improve Samsung's sales turnover. You should
use the information provided as well as your knowledge of commerce.

(Total for question = 12 marks)

Q10.

Namdhari's Fresh is a business in Bangalore that produces and sells fruit and vegetables. The
produce is sold both domestically and internationally. Most is sent to Europe, Australia and the
Middle East. At present Namdhari's Fresh have 25 stores across the city of Bangalore that sell its
product range, which includes flower and vegetable seeds. Sales have grown throughout these
stores, and this has led to Namdhari's Fresh introducing technology to sell its seeds.
Namdhari's Fresh exports most of its products to Europe, the Middle East and Australia.

Evaluate the language and currency difficulties Namdhari's Fresh may face when exporting its
products. You should use the information provided and your own knowledge in your answer.

(Total for question = 12 marks)

Q11.

The Giant Manufacturing Company is one of the world’s largest bicycle

companies.It manufactures high quality bicycles and accessories for professionals and people
with a passion for cycling. It had a large increase in sales in 2016 when many of its competitors
used collective advertising to promote the benefits of cycling.

Recently, its largest rival, Trek, has started using persuasive advertising. Trek is a lower price
manufacturer of bicycles. Its adverts inform the public that a lower price does not mean lower
quality.

Giant believes that customers want its bicycles and is planning to offer consumer credit to make
it easier to purchase its expensive bicycles.

Evaluate the benefits to Giant of offering consumer credit. You should use the information
provided as well as your knowledge of types of consumer credit.

(Total for question = 12 marks)

Q12.

Samsung is a world leader in the manufacture of mobile phones and tablets. The company was
started in Korea in 1938. In the first three months of 2010 Samsung shipped over 2.4 million
products. Over the past few years, sales of its expensive products have steadily increased.
Figure 2 shows the growth of shipments from January to September 2017.

Sales of its products are through various retail outlets or purchased directly through the website.
To increase sales on the website, Samsung offers its customers credit facilities.

Evaluate the benefits to Samsung of allowing credit facilities for customers to use when buying
products from its website. You should use the information provided and your own knowledge in
your answer.
 (Total for question = 12 marks)

Q13.

The Diskery is the oldest record shop in Birmingham, England. It sells and buys vinyl records for
a wide range of music to suit all tastes, from pop to classical. It buys its records from around the
world. Customers often stay a long time in the shop discussing records with staff before making
a decision on what to buy. The Diskery will also find any record that a customer wants from
around the world.

Evaluate the importance for The Diskery of maintaining a personal service for customers. You
should use the information provided and your own knowledge in your answer.

(12)

(Total for question = 12 marks)

Q14.

Stanley Market in Hong Kong is a traditional Chinese market selling a variety of products to local
visitors. It is popular with foreign tourists staying in Hong Kong and they visit the market to buy
souvenirs from the stalls.

Hanamoji is one of the stall holders at the market. He sells a wide selection of Chinese lanterns
for inside and outside the home. To make a profit Hanamoji needs a large number of locals and
tourists to visit the market and buy his products.

On Saturday Hanamoji sold goods to the value of 5 400 Hong Kong Dollars (HKD) and made a
profit of 2 300 HKD. On Sunday his profit had increased by 27.5%

Evaluate the reasons why Hanamoji should take out insurance for his stall and contents. You
should use the information provided and your own knowledge of commerce in your answer.

(12)

(Total for question = 12 marks)

Q15.

Next, a well-known clothing retailer, operates in over 70 countries with more than 43,000
employees. Since Next started trading it has introduced many other products to its range such
as furniture and flowers.

In 1999 it launched its own online shopping platform allowing customers to purchase Next goods
wherever they live. Next continues to improve its customer service by introducing new initiatives
such as next day delivery.

To reduce its stock of furniture Next is selling sofas with a 33% discount off the original price.

Evaluate the types of business risks Next would have to consider when taking out insurance on
its stores/shops. You should use the information provided and your own knowledge of commerce
in your answer.

(12)

(Total for question = 12 marks)

Q16.

Read the following extract before answering the question.

Some argue that the 'Singles Day' sale results in lower profits being earned per item sold
because of large discounts. Some retailers cannot offer such discounts.

Evaluate whether the 'Singles Day' sales benefit retailers. You should use the information
provided and your own knowledge in your answer.

(12)
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(Total for question = 12 marks)

Q17.

Nigeria has very few trains that are suitable for carrying agricultural freight across the vast
country. Deliveries of manufactured products are by road and are often delayed by congestion in
ports and cities. There are too few roads across Nigeria and these roads are poorly maintained.
All this can increase the cost of deliveries for businesses. The Nigerian government plans to
improve the road and rail network in the near future.

Kobo360 is based in Nigeria and operates a website to connect and support companies needing
transport for a wide range of products using Nigerian roads. With 13,000 different trucks
travelling all over the country, it has specialist knowledge of the best routes and the current
problems on particular roads.

Using its mobile applications, businesses can choose the most suitable truck for its products and
have it delivered quickly.

In 2018 three venture capitalists saw a potential of growth for Kobo360. Demand for transport
services was likely to increase to other African countries because of increasing trade and
improved roads. The venture capitalists invested $250 000 in Kobo360 to fund its growth.

Evaluate whether the use of venture capital is a good source of finance to help Kobo360 grow.
You should use the information provided and your own knowledge of commerce.

(Total for question = 12 marks)

Q18.

Mayse Artisan Bakery is a bakery shop in Hong Kong, China, which specialises in making
different types of bread. Alex the owner is a master bread maker who moved to Hong Kong
seven years ago. He brought with him the traditions and healthy eating styles of his own country
and started making bread. The business has become so popular that his daughter has joined him
as his business partner. His daughter has just completed a college course in pastry and cake
making. They plan to open another shop in the future.

Before opening another shop, the partners of Mayse Artisan Bakery are planning to carry out
research to find the best location for their new shop.
Evaluate which factors are most important when choosing the location for their new shop. You
should use the information provided and your own knowledge in your answer.

(12)

(Total for question = 12 marks)

Q19.

The Pet Safari in Selangor, Malaysia is a small pet store that sells domestic animals such as cats,
hamsters and fish. They sell freshly prepared food for all these animals.

Many people write very detailed reviews about the service they receive from the employees at
The Pet Safari, often giving employees a 5* review.

The Pet Safari has a club for members. Club members are given a 15% discount on all they buy.

Evaluate why a small retailer like The Pet Safari survives when there is competition from large
pet stores. You should use the information provided and your own knowledge of commerce in
your answer.

(Total for question = 12 marks)

Examiner's Report

Q1.

It is worth pointing out to candidates that this question does carry the most marks and they
should allow sufficient time to answer it with all four of the Assessment Objectives being
covered.

Candidates were asked to evaluate how effective social media may be in convincing the 30 to 50
year old age group in India to use Apple Pay and over 90% of them were able to gain some
marks. Most candidates were able to offer some knowledge of social media and the methods
Apple may use to target that group through Facebook and YouTube and analyse how this may
reach the target market. Sadly, too many candidates considered the age group to be unable to
learn how to use social media. Evaluation was varied but stronger responses were able to
recognise that the limitation of 14% of India's population not having access to social media may
constrain the success of the expansion. Many candidates recognised however that this may be a
short term problem as social media usage is likely to expand and that the restraint may be that
the target market may not have Apple phones.

Some candidates offered lengthy responses continued on additional paper, which is perfectly
acceptable, please ensure that all candidates do included the centres details and the candidates
name and their number on these additional sheets.

Q2.

It is worth pointing out to candidates that this question does carry the most marks and they
should allow sufficient time to answer it with all four of the Assessment Objectives being
covered.

Candidates were asked to evaluate how the use of her own capital to launch her business has
helped Jordan McCabe to become so successful. 90% of candidates were able to gain some
marks. Most candidates were able to offer some knowledge of the benefits of owners' capital but
too many did not then analyse this knowledge and so restricted themselves very often to Level 1
and Level 2. Evaluation was varied but stronger responses were able to recognise the
importance of the freedom this capital provided in allowing Jordan McCabe to have control of her
designs and marketing strategies but understand that the limitation of the capital may have
restricted the growth of the business which might have been avoided with the use of other forms
of long-term finance. It is worth remembering that as the question was about owners' capital,
these issues must be included in order to reach high Level 2 and Level 3. Too many candidates
moved on too quickly from offering knowledge of owners' capital to argue why other forms of
capital might also have helped and whilst these arguments are valid, it is difficult to achieve
detailed and logical interconnected chains of reasoning without the analysis of owners capital.

Some candidates offered lengthy responses and continued on additional paper, which is
perfectly acceptable, please ensure that all candidates do include the centres details and the
candidates name and their number on these additional sheets.

Q3.

It is worth pointing out to candidates that this question does carry the most marks and they
should allow sufficient time to answer it, with all four of the Assessment Objectives being
covered. Candidates needed to evaluate how Samsung's trade credit terms help it achieve more
orders from retailers. Many students were able to offer reasonable responses for this question.
Few had the detail to reach Level 3 but many achieved Level 2. Application was not usually a
problem.

Some candidates continued on additional paper, which is acceptable, but if there is no indication
on the examination paper that they have done so, valuable marks could be lost. Candidates
must let the examiner know that they have continued their answer, simply by adding the word
'continued', or 'contd' or something similar is acceptable.
Q4. No Examiner's Report available for this question

Q5. No Examiner's Report available for this question

Q6.

It is worth pointing out to candidates that this question does carry the most marks and they
should allow sufficient time to answer it with all four of the Assessment Objectives being
covered.

Candidates were asked to evaluate how social media helps FTLO Travel improve its sales. Most
candidates gave the valid response that FTLO Travel could use targeted advertisements to make
contact with their target 25–39 year old customers and that reviews from satisfied customers
with shared videos would also attract other customers around the world. There was a weaker
offering of evaluation but most were able to offer the issue of poor reviews if customers were not
satisfied but fewer were able to consider the costs of running the website and of keeping it
updated and launching promotional campaigns. Sixty percent of candidates achieved Level 2
marks.

Some candidates offered lengthy responses continued on additional paper, which is perfectly
acceptable. Please ensure that all candidates do include the centres details and their name and
candidates' number on these additional sheets.

Q7.

It is worth pointing out to candidates that this question does carry the most marks and they
should allow sufficient time to answer it with all four of the Assessment Objectives being
covered.

Candidates were asked to evaluate how taking part in New York fashion trade fair and
exhibitions helped promote Dauphinettes' brand. Most candidates gave the valid response that
the fairs and exhibitions would reach a worldwide audience but only a minority were able to
focus on the presence of major buyers which would likely lead to more export orders and brand
awareness being built through extra retail outlets and further online promotion. Many failed to
offer strong evaluation of the presence of many competitors and that one fair in one city would
be unlikely to be sufficient global promotion. Almost fourty-eight percent of candidates gained
Level 2 marks.

Some candidates offered lengthy responses continued on additional paper, which is perfectly
acceptable if these are genuinely long responses. Please ensure that all candidates do include
the centres details and their name and candidates' number on these additional sheets. However,
too often candidates are using the additional paper sheets where there is ample space without
them.
Q8.

Candidates were asked to evaluate how the London Toy Fair might help Mecccano achieve
exports of the Meccanoid.

Marks were available for knowledge, application, analysis and evaluation.

Results Plus: Examiner Comments

This response demonstrates knowledge and analysis of the business visitors to the trade fair,
who may help Meccano achieve exports around the world.

The chain of reasoning in the second paragraph is applied to the toys and related back to an aim
of increasing sales. This is a good, logical, chain of reasoning.

This is further developed in the third paragraph, with another thorough chain of reasoning with
reference to the height of the robot and how this may attract the visitors.

The second page offers applied evaluation, which is then related back to the original aim of
meeting the increased demand and the dependence on the development of the factory.

This is further developed with reference to the smaller size of the London Toy Fair, rather than
the Hong Kong Toy Fair.

This is a Level 3 response.

Some areas, particularly the first paragraph are largely generic and more application would have
increased the marks achieved.

The conclusion is a summary and does not introduce anything new into the response.

This may have been developed to consider the short and long term benefit of trade fairs. Trade
fairs are often used to build relationships with international buyers over a long period of time,
which may have helped Meccano in the launch of future products.

Level 3

Total: 10 Marks
Results Plus: Examiner Comments

This response meets all the requirements of Level 1 and moves into Level 2 with application of
knowledge and chains of reasoning.

The first paragraph offers some limited connections between children attending and exports
being gained.
The second paragraph offers better and sound application, which refers to the interaction of the
robot, its programs and features attracting buyers at the trade fair. Thus, leading to the increase
in exports, which is the aim of the business. A sound chain of reasoning.

The second page provides limited evaluation of the possible lower value of the London Toy Fair
compared with the Hong Kong Fair, but needs more development and chains of reasoning to be
considered sound.

Level 2

Total: 5 Marks

Q9.

It is worth pointing out to candidates that this question does carry the most marks and they
should allow sufficient time to answer it with all four of the Assessment Objectives being
covered.

Candidates were asked to evaluate how using persuasive advertising could improve Samsung's
sales turnover. The case study offered lots of pointers and opportunities for application with a
range of electronic devices listed that would all make a connected living range to make family
life easier and enjoyable. The candidates that achieve the highest marks extracted this
application and used it to support their analysis of how persuasive advertising might help
Samsung achieve this by , for example, showing how a particular family were able to gain
valuable time to relax together to watch their favourite TV programs which were recorded via
remote settings and that this experience led them to buy other products such as the vacuum
cleaner which when linked into the Wi–Fi can be operated remotely so the
families can return home to a clean house. This type of persuasive advertising then encourages
other families to buy a range of products to achieve the same benefit and increase sales
turnover and customer loyalty. However, this range is likely to also become part of Samsung's
competitors ranges in the near future so the benefit of improved sales turnover may be short
term. Almost 10% of students were able to offer these detailed chains of reasoning together with
thorough evaluation and a judgement to achieve the level 3 marks. However, the majority of
42% of candidates were able to achieve level 2 marks of 4, 5 or 6 marks with a sound application
and chains of reasoning together with a judgement based on sound evaluation. Some candidates
offered lengthy responses continued on additional paper, which is perfectly acceptable, please
ensure that all candidates do included the centres details and the candidates name and their
number on these additional sheets.

Q10.

It is worth reiterating to candidates that this question does carry the most marks and they
should allow sufficient time to answer it, as the question is marked against all four of the
Assessment Objectives. A number of candidates only completed a few lines and therefore did not
gain many of the marks available. Some candidates are using bullet points or numbered format,
this will not allow them to gain the higher level marks because they may not have analysed or
evaluated the points/comments made.

Candidates were asked to evaluate the language and currency difficulties Namdhari's Fresh
would have when exporting its products. A variety of valid comments were made by candidates,
such as problems with different languages in different countries, the price difference of products
in each country and then the changing of one currency to another, which are all very relevant,
but some candidates failed to develop these points and justify their decisions to enable them to
gain the higher level marks. Again a conclusion would help candidates to develop their
evaluative comments. Over three quarters of the candidates gained either a Level 1 mark or the
bottom of Level 2.

Q11.

It is worth pointing out to candidates that this question does carry the most marks and they
should allow sufficient time to answer it with all four of the Assessment Objectives being
covered. A number of candidates only completed a few lines and therefore did not gain many of
the marks available. Some candidates are using bullet points or numbered format, this will not
allow them to gain the higher level marks because they may not have analysed or evaluated the
points made.

Candidates were asked to evaluate why Samsung would allow credit facilities for customers. A
variety of valid comments were made by candidates, such as it enables customers to purchase
more goods, which increases sales. However they then failed to develop these points and justify
their decisions to enable them to gain the higher level marks.

Some candidates continued on additional paper, which is perfectly acceptable, please ensure
that all candidates do included the centres details and their name and candidates number on
these additional sheets.

It is worth pointing out to candidates that this question does carry the most marks and they
should allow sufficient time to answer it with all four of the Assessment Objectives being
covered. A number of candidates only completed a few lines and therefore did not gain many of
the marks available. Some candidates are using bullet points or numbered format, this will not
allow them to gain the higher level marks because they may not have analysed or evaluated the
points made.

Candidates were asked to evaluate why The Diskery maintains a person service for its
customers. A variety of valid comments were made by candidates, such as it gives the business
a good reputation, customer satisfaction increases sales and many other relevant comments.
However, they then failed to develop these points and justify their decisions to enable them to
gain the higher level marks. Over half of the candidates only achieved a Level 1 mark for this
question.

Some candidates continued on additional paper, which is acceptable, but if there is no indication
on the examination paper that they have done so, valuable marks could be lost. Candidates
must let the examiner know that they have continued their answer, simply by adding the word
'continued', or 'contd' or something similar is acceptable.

It is worth pointing out to candidates that this question does carry the most marks and they
should allow sufficient time to answer it, with all four of the Assessment Objectives being
covered. A number of candidates only completed a few lines and therefore did not gain many of
the marks available. Some candidates are using bullet points or numbered format, this will not
allow them to gain the higher level marks because they may not have analysed or evaluated the
points made.

Candidates were asked to evaluate why Hanamoji should take out insurance for his stall and
contents. A variety of valid comments were made by candidates, such as theft, fire. However,
they then failed to develop these points and justify their reasoning or give evaluative comments
to enable them to gain the higher level marks. Nearly half of the candidates achieved a Level 2
mark for this question and just over a tenth of cohort not gaining a mark. Candidates should
ensure that they give detailed comments about the question with some application of
knowledge, analysis and evaluative comments.

Some candidates continued on additional paper, which is acceptable, but if there is no indication
on the examination paper that they have done so, valuable marks could be lost. Candidates
must let the examiner know that they have continued their answer, simply by adding the word
'continued', or 'contd' or something similar is acceptable and as mentioned earlier, together with
which question they are continuing with.

This question is marked in exactly the same way as the 'Analyse' and 'Justify' questions. It is
worth pointing out to candidates that this question does carry the most marks and they should
allow sufficient time to answer it, with all four of the Assessment Objectives being covered:

AO1 – Knowledge
AO2 – Application
 AO3 – Analysis
AO4 – Evaluation

A number of candidates only completed a few lines and therefore this limited them to the
number of marks they were able to gain.

Some candidates used bullet points or numbered format: this also did not allow them to gain the
higher levels marks, because they may not have 'Analysed' or 'Evaluated' the points made.

Candidates were asked to evaluate the types of business risks NEXT would have to consider
when taking out insurance on its stores. A variety of valid comments was made by candidates,
such as theft and fire. However, they then did not develop these points, nor justify their
decisions, to gain the higher level marks. Most candidates gained some marks on this question,
with only a small number that did not.
Results Plus: Examiner Comments

Again, in this particular response the candidate has repeated information from the scenario,
which is not credited.

Candidates should be encouraged to avoid doing this, because it is wasting valuable time and
space.

Reference is made to fire and theft, which demonstrates mostly accurate knowledge and
understanding.

There is some sound application of knowledge with regard to its employees if they are not
always truthful and honest.

However, there was no development of the purposes or chains of reasoning to move the
response higher up the level.

Level 2
Total: 6 Marks
Results Plus: Examiner Comments

This is a well-developed response demonstrating accurate knowledge and understanding of the

various commercial concepts with regard to insurance.

However, there were limited interconnecting points.

To gain the top of a Level 3 the response should include interconnected points with logical
chains of reasons together with a well-reasoned conclusion.

Level 3

Total: 10 marks

No Examiner's Report available for this question

No Examiner's Report available for this question

It is worth reiterating to candidates that this question does carry the most marks and they
should allow sufficient time to answer it, as the question is marked against all four of the
Assessment Objectives. A number of candidates only completed a few lines and therefore did not
gain many of the marks available. Some candidates are using bullet points or numbered format,
this will not allow them to gain the higher level marks because they may not have analysed or
evaluated the points/comments made.

Candidates were asked to evaluate which are the most important factors when locating a new
shop. A variety of valid comments were made by candidates, such as access to customers,
availability of ingredients for making the bread and cakes, easy access to roads for transporting
goods which are all very relevant, but some candidates failed to develop these points and justify
their decisions to enable them to gain the higher level marks. Again a conclusion would help
candidates to develop their evaluative comments. A tenth of candidates failed to gain any marks
on this question, but it was pleasing to see a higher number of candidates gaining a Level 3
mark.

It is worth pointing out to candidates that this question does carry the most marks and they
should allow sufficient time to answer it with all four of the Assessment Objectives being
covered. A number of candidates only completed a few lines and therefore did not gain many of
the marks available. Some candidates are using bullet points or numbered format, this will not
allow them to gain the higher level marks because they may not have analysed or evaluated the
points made.

Candidates were asked to evaluate why small retailers are surviving when there is competition
from large pet stores. A variety of valid comments were made by candidates, such as small
retailers offer a personal service, often they have a relationship with customers and the retailer
stocks what the customers purchases are some examples. Some candidates made valid points
but then failed to develop these points and justify their decisions to enable them to gain the
higher level marks. A conclusion would help candidates to develop their evaluative comments.
Just over a tenth of candidates failed to gain any marks on this question.

Mark Scheme

Q1.
Q2.
Q3.