Business 9609/11 October/November 2025: question paper and mark scheme

Mark scheme

1(a) Define the term public sector. 2 Indicative content Responses may include: AO1 Knowledge and understanding CLEAR UNDERSTANDING (2 marks) • organisations accountable to and run/owned/controlled by central or local government (the state) (2) • the part of the economy composed of both public services and public enterprises; may be supported by examples e .g. police or medical services (2) • the sector in which goods and services are provided by the state/government (2) Clear understanding of the term public sector is worth 2 marks. This is indicated by 2 ticks . PARTIAL UNDERSTANDING (1 mark) • businesses which are not controlled by private individuals/not in the private sector (1) Partial understanding of the term public sector is worth 1 mark. This is indicated by 1 tick . Accept all valid responses. 1(b) Explain one benefit to a business of having a business plan. 3 Indicative content Responses may include: AO1 Knowledge and understanding 1 mark for identifying ONE BENEFIT of having a business plan • provides a clear plan/goal/guidance for the future • forces critical consideration of business • encourages market research • helps obtain finance • increases motivation • minimises risk of uncertainty • helps to measure success of the business against targets AO2 Application 2 marks for DEVELOPED application/explanation of the benefit given 1 mark for LIMITED application/explanation of the benefit given • increases chances of success/reduces risk of failure by anticipating problems e.g. financial/supply/staffing • includes a detailed view of the potential customers, competitors and external environment • sets objectives and co-ordinates all parts/departments of the business to meet them • gives investors/banks the confidence that the business can repay the money/make profit • helps the employees stay focussed on the objectives and see progress Accept all valid responses

Mark scheme

2(a) Define the term liquidation. 2 Indicative content Responses may include: AO1 Knowledge and understanding CLEAR UNDERSTANDING (2 marks) • process of selling off assets to repay debts/creditors (2) • selling assets to settle liabilities (2) • when a business ceases trading and its assets are sold for cash to pay suppliers and other creditors (2) Clear understanding of the term liquidation is worth 2 marks. This is indicated by 2 ticks . PARTIAL UNDERSTANDING (1 mark) • selling assets (1) • dissolution of a business (1) NOTE: do not accept bankruptcy. Partial understanding of the term liquidation is worth 1 mark. This is indicated by 1 tick . Accept all valid responses. 2(b) Explain one external source of finance for a business. 3 Indicative content Responses may include: AO1 Knowledge and understanding 1 mark for identifying ONE external source of finance for a business. • bank loans • share capital • debentures • new partners • venture capital/private investment • bank overdrafts • leasing • hire purchase • mortgages • debt factoring • trade credit • micro-finance • crowd funding • government grant 2(b) AO2 Application 2 marks for DEVELOPED application/explanation of ONE source of finance . 1 mark for LIMITED application/explanation of ONE source of finance . • borrowing money from a bank and paying it back in instalments, including interest, over an agreed period of time • raising money by selling a share of the business to investors who then have voting rights and receive a dividend • a long-term loan with a fixed interest rate where investors do not have voting rights but do receive the interest payment • allowing new partners to buy into the business, providing more money and expertise; will require a share of the profit • investors provide a mix of loan and share capital to a business which has a high risk of failure; want a return of partial ownership and control plus dividend on profits • short term finance allowing a business to borrow up to an agreed limit for as long as it wishes but interest must be paid • renting non-current assets for an agreed period of time, without owning them • buying non-current assets in instalments over an agreed period of time, owning the asset once the final payment is made • long term loans for the purchase of land and buildings, with the land or building used as collateral (security) • selling unpaid invoices to financial institutions to gain immediate cash; there is a fee to be paid for this service • short term finance – interest free loan from suppliers, with agreement to pay for goods/services within agreed time period after receiving invoice • transfer of money from high income earners (individuals/countries) to low-income earners to develop business activities • collecting a small amount of money from a large number of supporters, which may be a donation or a loan • money from government to support business activity which benefits the country – jobs, production, R and D, competitiveness Accept all valid responses.

Mark scheme

3(a) Define the term labour productivity. 2 Indicative content Responses may include: AO1 Knowledge and understanding CLEAR UNDERSTANDING (2 marks) • the ratio of outputs to labour input during production (2) • output per worker (2) • =Total output Number of employees (2) Clear understanding of the term labour productivity is worth 2 marks. This is indicated by 2 ticks . PARTIAL UNDERSTANDING (1 mark) Partial understanding of the term labour productivity is worth 1 mark. This is indicated by 1 tick . • output of labour/workforce (1) • how much employees are able to do/how productive workers are (1) Accept all valid responses. 3(b) Explain one way that a business can improve labour productivity. 3 Indicative content Responses may include: AO1 Knowledge and understanding 1 mark for identifying ONE WAY that a business can improve labour productivity. • motivate employees • train employees • employ experienced workers • increase hours worked • change way work is done • invest in equipment and technology AO2 Application 2 marks for DEVELOPED application/explanation of ONE way 1 mark for LIMITED application/explanation of ONE way • effort and productivity may increase if employees are offered financial or non -financial rewards – they may feel more valued and work harder e.g. piece rate pay • training/experience increases employee output by helping them to gain more skills and learn new and better ways of doing things • working more hours may mean an individual employee could produce more products i.e. increase their own total output • team working, altering the layout of the workplace, implementing employee recommendations on how they could work more effectively could improve the speed of production and productivity • if employees have modern and more efficient machinery, they should be able to have higher output than employees who are using outdated equipment. (NOTE: suggesting replacing employees with machines to improve business productivity is not answering the question) Accept all valid responses.

Mark scheme

4 Analyse one benefit to a business of low labour turnover. 5 Note: no marks can be awarded if a relevant benefit is not given Indicative content Responses may include: AO1 Knowledge and understanding 1 mark for identifying ONE BENEFIT to a business of low labour turnover • retain experienced, trained and skilled employees • motivated/loyal employees • lower costs • HR team focussed on current employees not recruitment • achievement of objectives • uninterrupted production process/good productivity • increased stability/reputation of business 4 AO2 Application 2 marks for a DEVELOPED application/explanation of ONE benefit to a business of low labour turnover 1 mark for LIMITED application/explanation of ONE benefit to a business of low labour turnover • retain employees so skills are kept within the business • assurance of job security to current and prospective employees • current employees know the business well as have been there a long time • less money and time is spent on the recruitment, selection and training process for new employees • understanding of objectives may have increased over time • current employees are satisfied/better motivated and developed • no delays created by missing employees • employees are happy and praise the business to outsiders AO3 Analysis 2 marks for DEVELOPED analysis of ONE benefit to a business of low labour turnover 1 mark for LIMITED analysis of ONE benefit to a business of low labour turnover • employees are specialised and can work with few errors so less waste and good quality • encourages loyalty and hard work and assists with recruitment so saving money • employees know what they are doing and have high output/can train others with on -the-job training • reduced opportunity cost so more finance is available to use elsewhere in the business • long-serving employees are more likely to have commitment to working towards and achieving the objectives • can attract skilful labour to the business so improving productivity • better customer satisfaction and loyalty increases sales and revenue Accept all valid responses.

Mark scheme

5(a) Analyse two benefits to a business of using a vertical merger for growth. 8 Indicative content NOTE: Some understanding of the term vertical merger must be shown. Responses which give general benefits of a horizontal merger/growth e.g. larger workforce/economies of scale are not answering the question and should not be rewarded. Responses may include: AO1 Knowledge and understanding 1 mark for identifying ONE benefit to a business of using a vertical merger for growth • rapid external growth within the same supply chain • control over the market/secures outlets/customers/suppliers • improved quality control of materials • exclude competitors from using same supplier • reduces costs • R and D potential AO2 Application 1 mark for application/explanation of ONE benefit to a business of using a vertical merger for growth • expansion is either with a customer or supplier business • gain economies of scale • can encourage sales of own products if merging with a customer or select best quality materials if merging with supplier • restrict sales of competitors or limit availability of different supply factors to competitors • may be duplication of job roles or resources expertise of both businesses combines to improve supply chain 5(a) AO3 Analysis up to 2 marks for analysis of ONE benefit 2 marks for DEVELOPED analysis of ONE benefit to a business of using a vertical merger for growth (L2 AN) or 1 mark for LIMITED analysis of ONE benefit to a business of using a vertical merger for growth (L1 AN) • both businesses already familiar with what is more likely to be successful due to existing experience and knowledge of suppliers and customers • forward vertical merger with a customer gives control over promotion and pricing of own products and may result in greater sales and profits • secures outlets for products and gives direct access to markets to allow faster response to customer requirements • may exclude competitors’ products and reduce competition, possibly increasing market share • backward vertical with a supplier gives control over quality, price and delivery times for supplies, assisting JIT • reduces costs of production and increases profit margins • supplies to competitors may be controlled and possibly reduced or the price increased • after redundancies (which may be expensive), wage costs may be reduced and profits increased • encouragement of R and D by suppliers to improve quality of materials used in manufacturing Accept all valid responses. 5(b) ‘Risk taking is the most important quality needed by an entrepreneur to be successful in the clothing design 12 industry.’ Evaluate this view. Indicative content Responses may include: AO1 Knowledge and understanding 2 marks for DEVELOPED knowledge and understanding (L2 K) 1 mark for LIMITED knowledge and understanding (L1 K) Qualities of an entrepreneur • multi-skilled • self-confidence • ability to bounce back • innovative/creative/make good designs • results orientated • committed • self-motivated • leadership skills • definition of an entrepreneur AO2 Application 2 marks for DEVELOPED application (L2 APP) 1 mark for LIMITED application (L1 APP) • relevance to clothing design industry – design of garments, not manufacture, although in a small start-up the entrepreneur may do both • changing fashions/clothing trends/seasons fashion designers, tailors, types of clothes, fabric, fashion shows 5(b) AO3 Analysis 2 marks for DEVELOPED analysis (L2 AN) 1 mark for LIMITED analysis (L1 AN) • consideration of the importance of risk-taking as a quality of an entrepreneur. This may look at ways in which risk- taking is important and ways in which it isn’t important • risk of entering an established and competitive environment and investing own savings. May be relatively cheap to enter this industry as it is design, not necessarily manufacturing • belief that the business can enter the market alongside established brands although designs can be cheaper and aimed at different markets in which the entrepreneur may have more experience • risk of failing and having to start again – might be needed if customers do not like the designs and demand is low • take the risk to produce new and innovative designs/styles of clothing to attract customer from competitors • consideration of the importance of other qualities of an entrepreneur • being multiskilled and having ability to perform many different business activities e.g. market research, promotion, presentation of product, handling of finance, dealing with customers, cutting out, sewing, etc. Designs could be done using CAD and a website, making some other skills redundant or easier to deal with • focussed on achieving objectives which the entrepreneur will have set for themselves and therefore is more likely to know how to work towards to make the business successful • ambition to make this business succeed as the alternative is to develop a new business idea or move into the role of an employee for another business (which an entrepreneur may find boring) • driven and hard-working as this is their own business and they are more likely to work long hours in order to make it succeed – the initial risk is the most exciting stage • able to inspire/motivate employees with the entrepreneur’s own vision, self -belief and work ethic as cannot run the business on their own 5(b) AO4 Evaluation Up to 6 marks for EVALUATION – USE THE FOLLOWING TABLE: Developed/Supported judgement in context 6 marks Developed/Reasonable evaluative comments in context 5 marks Developed/Supported judgement without context 4 marks Developed/Reasonable evaluative comments without context 3 marks Limited supported judgement 2 marks An attempt to balance the arguments/Weak attempt at evaluative comments 1 mark A judgement/conclusion is made as to whether risk taking is the most important quality for an entrepreneur to be successful in the clothing design industry. Such judgements/conclusions may be made at any point in the essay, not only in a concluding section. • how important are other qualities of entrepreneurs instead of/alongside risk taking? • what is considered successful in this industry – survival, being profitable, gaining market share with cheap clothing, entering a niche market with high end fashion? • what level of risk is involved within the entrepreneur’s plans – are they providing custom T-shirts with a design specified by a customer using a web page – do they want to design elaborate wedding dresses or festival outfits for a specific target market – is this a new business or a diversification for an already successful entrepreneur breaking into a new market? • a judgement should be made about the importance of different qualities in this particular context • other factors might be equally or more important than any quality shown by an entrepreneur – the strength of the competition, the demand of the consumer, how dynamic the market is, where the entrepreneur is selling the product, external conditions affecting the market, etc. Accept all valid responses.

Mark scheme

6(a) Analyse two benefits to a business of using a Boston Matrix. 8 Indicative content Responses may include: AO1 Knowledge and understanding 1 mark for identifying ONE benefit (K) • allows the business to analyse and assess the range of different products currently produced by a business • can see and review the allocation of resources between different products • can provide important information about the strengths/weaknesses of particular products • allows a business to measure how each product contributes to total business performance • could attract additional investment • compare their products to those of competitors • make decisions about the products in the portfolio • business planning for new product development • AO2 Application 1 mark for application of ONE benefit (APP) • identifies question marks, stars, cash cows and dogs • analyses the market share and market growth of a business’ products • identifies products which are at different stages of their product lifecycle • identify changes needed to operations and marketing (e.g. pricing) of current products, resources, expenditure, product development, strategies • lack of question marks/stars in the Boston Matrix suggests new product needed 6(a) AO3 Analysis up to 2 marks for analysis of each benefit – 2 marks for DEVELOPED analysis of each benefit (L2 AN) – 1 mark for LIMITED analysis of each benefit (L1 AN) Aspects of the marketing mix may be applied to product types in the Boston Matrix e .g. • effective promotion of question marks to increase market share within the market – may need market research and a new promotional mix • decide pricing strategies to increase revenue, e.g. skimming/penetration/competitive, depending on the market • apply extension strategies for cash cows to maintain revenue and provide reliable funding to support other products • whether to remove a product (dog) from the portfolio or adjust the marketing mix – may depend on demand in the market • may need to carry out R&D which will need to be financed Accept all valid responses. 6(b) ‘Packaging is the most effective promotion method for a fast -food business.’ 12 Evaluate this view. Indicative content NOTE: the question is about promotion, not the other aspects of the marketing mix. Responses which discuss price, place and product without linking this to promotion are not answering the question and should not be rewarded. Responses may include: AO1 Knowledge and understanding 2 marks for DEVELOPED knowledge and understanding (L2 K) 1 mark for LIMITED knowledge and understanding (L1 K) • role of packaging in promotion – information, colour, logo, competitions • advertising promotion • sales promotion • direct promotion • digital promotion • branding AO2 Application 2 marks for DEVELOPED application (L2 APP) 1 mark for LIMITED application (L1 APP) • use of promotion by a fast-food business e.g. McDonalds (golden arches on red background), Pizza Hut, Domino’s, Burger King, Yo Sushi. • Taste, restaurants, menu, ingredients, types of fast food e.g. burgers/pizzas 6(b) AO3 Analysis 2 marks for DEVELOPED analysis (L2 AN) 1 mark for LIMITED analysis (L1 AN) Benefits of the use of packaging as a means of promotion – • easily seen by many people, whether eating the food or not • a well-known business can reach a large number of potential consumers when packaging is carried around a busy area • a logo is easy to include on most types of food packaging e.g. trays, bags, cups • colours can be used to make the promotion eye-catching • there is no need for explanation of the business on the packaging as customers recognise the logo and/or colours • packaging is used anyway to carry and protect the food, so it is relatively cheap to use it for promotion Drawbacks of the use of packaging as a means of promotion – • packaging promotion may be ignored as it is the contents that are important to the customer • some fast-food businesses have their reputation damaged by customers who dispose of the packaging irresponsibly • plain packaging is cheaper to produce/buy than promotional packaging so increases costs • some customers eat the food and dispose of the packaging without anyone else seeing it • target market may include children who are not influenced by the packaging 6(b) AO4 Evaluation Up to 6 marks for EVALUATION – USE THE FOLLOWING TABLE: Developed/Supported judgement in context 6 marks Developed/Reasonable evaluative comments in context 5 marks Developed/Supported judgement without context 4 marks Developed/Reasonable evaluative comments without context 3 marks Limited supported judgement 2 marks An attempt to balance the arguments/Weak attempt at evaluative comments 1 mark A judgement/conclusion is made as to whether packaging is the most effective promotion method for a fast -food business. Such judgements/conclusions may be made at any point in the essay, not only in a concluding section. • how effective is packaging for promoting this particular type of business? • is promotion on packaging more effective for large businesses which already have an established brand? • how effective are other types of promotion for a fast-food business? • advertising using television, print media, social media and the business’ own website are all effective at constantly reminding customers of existing and new types of food • sales promotions/discounts/meal deals/toys/collectibles are effective as customers are often young and on limited incomes • direct promotion to individuals is unlikely in this industry as the product is aimed at the mass-market, although leaflet drops are used • digital promotion via websites and social media allows customers to interact with the business, place orders, give feedback, which can then promote the business to other customers, therefore is very effective given the target market • older customers may still want to buy the food, for themselves or younger relatives, but are less likely to use digital media • branding is very important as the fast-food market is competitive, but to maintain that brand image and a high market share a lot of different promotion methods are used together 6(b) • all other types of promotion can be more expensive than promotion on the packaging, but large fast -food business can afford this • judgement made as to which promotion method is likely to be the most effective in this context • it is likely that all types of promotion will be carried out at some time and in some circumstances due to the nature of the market and the large budget available to many businesses in it. Accept all valid responses.