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Cambridge International AS & A Level: Business 9609/22 October/November 2020
Cambridge International AS & A Level: Business 9609/22 October/November 2020
BUSINESS 9609/22
Paper 2 Data Response October/November 2020
MARK SCHEME
Maximum Mark: 60
Published
This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the
examination. It shows the basis on which Examiners were instructed to award marks. It does not indicate the
details of the discussions that took place at an Examiners’ meeting before marking began, which would have
considered the acceptability of alternative answers.
Mark schemes should be read in conjunction with the question paper and the Principal Examiner Report for
Teachers.
Cambridge International will not enter into discussions about these mark schemes.
Cambridge International is publishing the mark schemes for the October/November 2020 series for most
Cambridge IGCSE™, Cambridge International A and AS Level and Cambridge Pre-U components, and some
Cambridge O Level components.
These general marking principles must be applied by all examiners when marking candidate answers.
They should be applied alongside the specific content of the mark scheme or generic level descriptors
for a question. Each question paper and mark scheme will also comply with these marking principles.
• the specific content of the mark scheme or the generic level descriptors for the question
• the specific skills defined in the mark scheme or in the generic level descriptors for the question
• the standard of response required by a candidate as exemplified by the standardisation scripts.
Marks awarded are always whole marks (not half marks, or other fractions).
• marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit
is given for valid answers which go beyond the scope of the syllabus and mark scheme,
referring to your Team Leader as appropriate
• marks are awarded when candidates clearly demonstrate what they know and can do
• marks are not deducted for errors
• marks are not deducted for omissions
• answers should only be judged on the quality of spelling, punctuation and grammar when these
features are specifically assessed by the question as indicated by the mark scheme. The
meaning, however, should be unambiguous.
Rules must be applied consistently, e.g. in situations where candidates have not followed
instructions or in the application of generic level descriptors.
Marks should be awarded using the full range of marks defined in the mark scheme for the question
(however; the use of the full mark range may be limited according to the quality of the candidate
responses seen).
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should
not be awarded with grade thresholds or grade descriptors in mind.
Knowledge Marks
A correct definition 2
No creditable content 0
Content
A correct definition should include the following elements (allow one mark
for each element):
• Revenue is the money received (by a business)
• for selling its products and services.
Rationale Marks
1(a)(ii) Content
1(b)(i) Refer to Table 1.1. Calculate the difference in dollars received by each 3
director and each manager from the profit-sharing scheme.
Rationale Marks
No creditable content 0
Content
• Directors share of the profit = 0.25% = 0.25% of $12 m = $30 000
($0.03 m)
• Managers share of the profit = 0.1% = 0.1% of $12 m = $12 000
($0.012 m)
• $30 000 – $12 000 = $18 000
Common answers
*OFR means the use of the own figure rule – this aims to reward a
candidate for the stages of a calculation that are correct, even if an earlier
stage or figure used is incorrect. An early mistake, for example, would
create all following calculations to have wrong answers, but these are still
rewardable (if correct when using a candidate’s own figures) Therefore the
candidate cannot gain marks for the stage that was incorrect, but can gain
all the subsequent marks.
0 No creditable content 0
Content
• ES might not have enough retained profit to invest in the new licenses
for fracking.
• ES shareholders might sell their shares because of low dividends
leading to the company being taken over.
• Increases the costs of the business and therefore could make ES less
competitive (many competitors in the market).
• May cause employer/employee issues because of the different shares
gained (use of previous answers – OFR).
There is less retained Which may lead to Which might stop their
profit for ES lower growth for ES expansion into future
fracking sites
1(c) Analyse one internal source of finance and one external source of 8
finance that ES could use to purchase a fracking license.
0 No creditable content 0
Content
Internal
• Retained earnings – ES made $12m profit in 2018, so likely to have
some retained earnings to use as a source of finance
• Sale of assets – ES owns some old coalmines – could these be sold to
raise finance for the licenses.
External
• Selling shares – plc so able to raise funds in this way – profitable and
may be able to sell on the basis of publicity that profits will increase
• Government grants – government of country X is very supportive of
fracking, so may be willing to give a grant to ES
• Bank loans – profitable business, promising future returns
1(c)
Example of an Examples of Examples of possible
internal source of application/context analysis (AN + DEV)
finance (K) (APP)
Developed evaluation 6
based on arguments in
context
An evaluative statement 5
based on arguments in
context
No creditable content 0
1(d) Content
• Local community/society – devaluation of houses, earthquakes,
pollution
• Activists/environmentalists/pressure groups – damage to the natural
environment, pollution etc.
• Potential investors – attracted to future profit but could be put off by bad
publicity (not current shareholders)
• Potential employees – Growth in jobs
• Customers – cheaper energy, cost of living
• Suppliers – increased demand because of ES growing
• Lenders – risk of bad publicity or government changing mind at a later
date
• Government – increase energy self-sufficiency, increased tax revenue,
economic growth
• Competitors – May lead them to having to purchase a fracking license
and increasing costs to compete
1(d) Examples of how an answer could develop and how it should be annotated.
1(d)
K APP AN DEV EVAL
Knowledge Marks
A correct definition 2
No creditable content 0
Content
A correct definition should include the following elements (allow one mark
for each element):
• An amount is added on to give the amount the customer must pay (1)
• Based on the cost to produce a product (1)
2(a)(ii) Explain the difference between ‘cash’ (line 15) and ‘profit’ (line 15). 3
Rationale Marks
B Understanding of profit 1
A Understanding of cash 1
Content
• Cash is the liquidity of a firm – the money available to pay
debts/bills/everyday costs
• Profit is the difference between cost and revenue.
• Cash is required and will come from revenue, but not all cash is profit
as costs need to be paid.
• Cash is an asset of the business.
• Cash is required to run a business, whereas profit is something to aim
for.
• A business is unlikely to operate without cash but can operate without
profit.
2(b)(i) Refer to Table 2.1 and any other relevant information. Calculate the 3
revenue GT will receive from all the performances of ‘A Summer
Dream’ in January 2021.
Rationale Marks
Correct calculation of TR 2
No creditable content 0
Content
Formula: $40 × (250 tickets × 9 performances)
$40 × 2250
= $90 000 (TR)
50% of revenue to GT = $90 000 / 2 = $45 000
Answer = $45 000
OFR
2(b)(ii) Explain one possible advantage to GT, other than increased revenue, 3
of renting the theatre to visiting groups.
0 No creditable content 0
Content
• Reduces the risk of operating the theatre
• Reduces the average cost of productions (fixed costs are spread over
more performances)
• May advertise GT performances at a visiting group
• Makes use of a redundant resource/capital item
• Increases GT’s usage of the theatre
• Increases GT’s cashflow
ARA
2(c) Analyse two factors which might affect the demand for the 8
performances at GT’s theatre.
0 No creditable content 0
Content
Candidates may choose to analyse the demand from consumers or the
demand from visiting theatre groups
• Changes in income – being a normal/luxury product, consumers are
likely to increase spending on GT performances based on increasing
income.
• Fashions/trends/tastes/preferences – going to the theatre may become
fashionable, or may become a new trend
• Advertising – if GT spend on advertising, then it is likely to increase
demand for their performances
• Brand awareness
• Price of substitutes/complements
• Availability of substitutes/compliments (for example Netflix, Amazon,
other theatres)
• Population size
• Quality
• Uniqueness (USP)
• Price – likely to be an increase in QD if price falls and vice versa.
2(c)
Example of a Examples of Examples of possible
factor (K) application/context analysis (AN + DEV)
(APP)
Income (K) Theatre tickets are likely to Which means that the
be a luxury good (APP) higher the income the
more tickets GT will sell
(AN) and the more profit
GT will make (DEV)
2(d) Recommend whether GT should employ Nick or Portia for the position 11
of Theatre Manager. Justify your recommendation.
Justified recommendation
7
based on argument in context
Developed recommendation
6
based on argument in context
A recommendation /
evaluative statement based on 5
argument in context
No creditable content 0
Content
Nick
• Experience in the sector (three years for a similar business)
• A-Level in Business – helps with the admin
• Organised and efficient – helps with the admin
• No management experience – so will he be able to do the job?
• May not stay for long
Portia
• Eight years of experience in a bank – helps with finance
• Good sense of humour – likely to help in job
• Likely to stay for a long time
• No formal qualifications – but is this made up for by the bank
experience?
• Late for the interview – does this suggest she is disorganised –
however worked for the bank for eight years