9609/12 Cambridge International AS & A Level - Mark Scheme May/June 2023

PUBLISHED

e5, 64
Question Answer Marks

Define the term factors of production. 2

A01 Knowledge and understanding

Knowledge of the term that demonstrates a clear understanding of the term. 2

Knowledge of the term that demonstrates a partial understanding of the term. 1

No creditable response. 0

Indicative content

Responses may include:

A01 Knowledge and understanding

• Factors of production are inputs available and needed to supply goods and services
• Four/five factors - land, labour, capital, entrepreneurship (enterprise)- knowledge often considered a factor.
• The resources available and required to produce goods and services. (Clear definition 2 marks x 2)
• Resources such as land or labour or capital. (Partial definition - 1 mark , x 1)

Accept all valid responses.

9609/12 Cambridge lntematlonal AS & A Level - Mark Scheme February/March 2023

.,
PUBL!ISHED
Question Answer Marks

Explaln 2Dl quality an entrepreneur needs for bualneH aucceH. 3

O' AO1 Knowledge and understanding

1 mark
AO2 Appllcatlon
2 marks

2 marks
Developed application of one relevant point to a
business context.

1 mark 1 mark
Knowledge of one relevant point is used to answer the Limited application of one relevant point to a business
question. context.

0marka 0 marks
No creditable response. No creditable response.

Indicative content

Responses may include:

AO1 Knowledge and understanding

• Clear understanding of quality(ies) of a successful entre preneur.
1

• Risk taker
• Creativity
• Innovation
• Commitment
• Self-motivated
• MuIll-skilled
• Self-confidence
• Lead and manage
• Ability to bounce back

(a) Most candidates produced clear definitions which included a focus on entrepreneurs

UCLES 2023 PaQe 9 of 27

 using factors of production to set up a business to make products and to make profits. Partial
definitions often only referred to factors of production.

(b) This question was well answered with many candidates gaining three marks. Accurate
reasons were identified and then explained and applied to realistic business situations. The
majority of strong answers tended to give a lack of finance as the main reason for business
failure although reasons such as strong competition, poor management skills, and lack of
effective marketing were also popular reasons given.

9609/13 Cambridge International AS & A Level - Mark Scheme October/November

PUBLISHED 2023

Question Answer Marks

lo, Define the term organic growth. 2

t\ Indicative content

Responses may include:

A01 Knowledge and understanding

Clear understanding (2 marks)
• Organic growth is the growth of a business through internal processes,
relying on its own resources without using external

Partial understanding (1 mark)

• Organic growth is internal growth

-
Accept all valid responses.

Explain 2.!1! reason a business may choose to remain small 3

Indicative content

Responses may include:

A01 Knowledge and understanding

Reasons why a business may remain small include:
• Personal choice of business owner
• Unwilling to take risks of growth
• Lack of finance
• Unable/unwilling to meet costs of growth
• Unwilling to lose control
• Concern for quality
• Lack ambition
• Unwilling to accept increases management responsibility
• Determined to remain flexible
• Committed to the small business model
• Lack of demand
• Form better relationships with employees/customers.

(a) This proved to be an accessible question for most candidates. There was a recognition
that organic growth is business growth through internal processes. Internal resources are
exploited rather than external measures such as mergers or acquisitions.

(b) Many candidates correctly identified a reason why a business might choose to remain
small. Popular reasons given included lack of finance, reluctance to lose control, and an
 unwillingness to take risks associated with growth. However, many answers failed to apply
and explain why for example a business owner might prefer to give up opportunities for
growth – in order to avoid the higher risk decisions associated with higher production and
avoid the need to recruit more employees.
9609/13 Cambridge International AS & A Level - Mark Scheme October/November
• difficult to forecast future inventory needs.
PUBLISHED 2023
• must change and adapt.
Question Answer Marks
AO3 Analysis
A02 Application
•
changing
• Thecustomer
lifestyle needs
choice might affectowners
of business demand leading
- to maintain to ainnovation, product
healthy work-life
development,
balance extension strategies and altering production.
• regular• market researchowners
Small business needed may to not
adapt
knowto how
changing demand
to expand therefore
- unwilling increasing
to take
costs and possibly profit.
risks and compete in more markets
• technological
• Lack of changes
investmente.g.capital
availability and speed
- unwilling of theborrowing
to increase internet can make it easier to
find suppliers and sell across the world.
• Reluctant to engage in more marketing activities - cannot afford the costs
• new•policies can to
Unwilling give up
change control ofbehaviour
business the business - expansion
which may altermay reduce and
objectives
control
production methods. and satisfaction
•
• economic Fear of losing affect
conditions controlspending
over the quality
powerof andproduct/service - personal
choice of products chosen e.g.
hands-on service may be the USP of the business
9609/01 needs vs luxuries / cheap vs expensive.
Cambridge International AS & A Level – Mark Scheme For examinat
•
• increase Desire to keepin
or decrease overheads
competition (fixed
maycosts)
altertopricing
SPECIMEN a minimum - lack
strategy andambition to profit.
therefore from 20
explore growth
• managers will need to change some of their decisions about inputs, the
Question • Avoid the regulatory burdens associated with large business - content to
transformation process or the outputs theyAnswer produce. Mark
keep the business processes simple
4 • they
Analyse might
one•way in switch
which production
ethics may to another
influence the country;
activities ofbecome
a business. more capital intensive; sell
Maintain a high level of flexibility and adaptability to dynamic markets -
productsseesto other countries.
the agility of a small business as an asset
Table
• C changes may have costthan
implications for the
• Lower revenue large business butbusiness and affect
profit margins may be revenue
higher -and profits.
9609/01
Follow the small
the point-based business
marking guidancemodel
at the is
topeffective Cambridge
of this mark International
scheme and AS
use this table to &A
give Level
marks – Mark
for each Scheme
candidate
Accept
response. all valid responses. SPECIMEN
Accept all valid responses.
Section A
AO1 Knowledge and understanding AO2 Application AO3 Analysis
Table A 1 mark 2 marks 2 marks
2a,
Description Description Description
Use this table to give marks for each candidate response for Questions 1(a), 2(a) and 3(a).
2 marks 2 marks
AO1 Knowledge and understanding Developed application of one relevant Developed analysis that identifies
point to a business context. connections between causes, impacts
Description and/or consequences of one relevant
Marks
point.
Knowledge of the term that demonstrates a sound understanding of the term. 2
1 mark 1 mark 1 mark
Knowledge
Knowledge of the
of one term
relevant that
point is demonstrates a partial
Limited application understanding
of one relevant of the term.
Limited 1
analysis that identifies
used to answer the
No creditable question.
response. point to a business context. connections between causes,
0 impacts
and/or consequences of one relevant
Follow
TabletheB point-based marking guidance at the top of this mark scheme and use Table A to
point.
give0 marks
marks for each candidate response. 0 marks 0 marks
AO1 Noout
Use of table
this 2 marks.
creditable to give marks for each
response. candidate
No creditable response for Questions
response. 1(b), 2(b)
No creditable and 3(b).
response.
Responses may include:
Indicative content AO1 Knowledge and understanding AO
3a Define the term ‘strategic alliance’.
1 mark[2]
Responses may include: Description
A strategic alliance is a form of external growth that does not involve complete integration or
AO1 Knowledge and understanding 2 marks
changes in ownership. Instead, it keeps the parties to the agreement independent. Strategicapplication of one
Developed
• The moral
alliances can principles
be madethat guide theaway
between a business
wide variety behaves – distinguishing between ‘right’
of businesses/organisations. For and ‘wrong’ and
example, a then making
the ‘right’ choice.
1 mark 1 mark
business might form an alliance with:
Knowledge of one relevant point is used to answer the question. Limited application of one rele
0 marks
• A university, providing
No creditable response.
finance to provide new specialist training courses0 marks
that will
No creditable response.
increase the supply of suitably trained employees for the business.
© UCLES 2020 Page 13 of 22

3b Explain one reason why a merger or take over leads to synergy? [3]

© UCLES 2020 Page 6 of 22

9609/13 Cambridge International AS/A Level - Mark Scheme October/November
PUBLISHED 2019

Question Answer Marks

,, SExplain the benefits of a co-operative to its members. 5

Answers may include:

oo Co-operatives are joint ownership organisations (producer, workers,

consumers).
oo A distinctive type of business organisation - often a significant amount of
democratic control and profits shared/distributed in proportion to
members' investment.
co Producer co-operatives common in agriculture in developing countries.
oo Advantages claimed for co-operatives include:
- Members/users are involved and have opportunity to direct and
control the business.
- Business is designed and run specifically for the members/users.
- Resources are pooled for mutual gain.
- Increased purchasing/supplier power - joint advertising.
- More consumer power - less social/environmental damage.
- Allows members with common interests to work together and
assume responsibility (e.g. village post office/shop).
oo In consumer co-operatives consumers may receive dividends for their
patronage.
oo Producers protected from being exploited by large buyers.
oo Accept any other valid response.

Effective explanation of at least two advantages of a co-operative

Application
to marks in Q. 5- example of a cooperative like a farmers (4-5
its members. cooperative
marks) and benefit
members will get by being part of it, bulk buying discounts on seeds and fertilizer or
purchase of of
Explanation tractor or other
at least two machinery
advantages which
of a wouldn’t have to
co-operative been
its possible for a small farmer.
Example can be any retailer’s cooperative, producer’s
members or effective explanation of one advantage. cooperative etc.(3Asmarks)
long as benefits
can be explained with reference to the type of business.
Explanation of one advantages of a co-operative to its members. (2 marks)
Strong answers clearly understood the distinctive features of a cooperative as a legal form of
business unit. Opportunities for more effective marketing, more efficient purchasing of
Descriptive
supplies andinformation about
higher product co-operatives.
pricing (1 mark)
were explained as benefits of joining or forming co-
operative forms of organisation, together with the advantages of democratic decision making
No creditable
and content.distribution of profits. Weaker answers provided (0
a more equitable marks)
fewer examples of
benefits and often explained ‘cooperation’ rather than co-operatives as business enterprises.
 SPECIMEN from 2023

Question Answer Marks

4 Analyse one way in which ethics may influence the activities of a business. 5
9609/13 Cambridge International AS & A Level - Mark Scheme May/June 2022
Table C PUBLISHED
Follow the point-based marking guidance at the top of this mark scheme and use this table to give marks for each candidate
response.
Question Answer Marks
AO1 Knowledge and understanding AO2 Application AO3 Analysis
1 mark the disadvantages to a sole
Analyse trader of changing to
2 marks a partnership.
2 marks
8
Description Description Description
Level 2 marks Description 2 marks Marks
Developed application of one relevant Developed analysis that identifies
4 point to of
Good analysis a business context.
the disadvantages to a sole trader between7-8
connections causes, impacts
of changing to a partnership and/or consequences of one relevant
point.
1 mark 3 1 mark of the disadvantages to a 1sole
Limited analysis mark 5-6
Knowledge of one relevant pointtrader
is Limited application of one
of changing to a partnership relevant Limited analysis that identifies
used to answer the question. point to a business context. connections between causes, impacts
9609/13 Cambridge International AS & A Level - Mark Scheme May/June
and/or consequences 2022
of one relevant
2 Application of the disadvantages to a sole trader
PUBLISHED point. of 3-4
0 marks
changing0 to a partnership
marks 0 marks
No creditable response. No creditable response. No creditable response.
Question 1Knowledge andAnswer
understanding of sole trader or 1-2 Marks
Indicative content partnership
Analyse the disadvantages to a sole trader of changing to a partnership. 8
Responses may include: No creditable content
0 0
AO1 Knowledge
Level and understanding Description Marks
• The moral principles that guide the way a business behaves – distinguishing between ‘right’ and ‘wrong’ and then making
Answers could include:
the ‘right’ choice.
4 Good analysis of the disadvantages to a sole trader 7-8
Knowledge and understanding
of changing to a partnership2 marks
• Demonstrates a clear understanding of being a sole trader
3 • Limited analysis
Demonstrates of the
a clear disadvantages
understanding to aa partnership.
of being sole 5-6
© UCLES 2020 Page 13 of 22
trader of changing to a partnership
Application 2 marks
2 • Reference to of
Application thethe disadvantages
disadvantages to a sole
of changing from a soleoftrader to a3-4
trader
changing to a partnership
partnership business.

1 Knowledge
Analysis 4 marksand understanding of sole trader or 1-2
• partnership
Loss of ownership. The sole trader might have been the sole owner of
their business for some time and this change would be difficult to take,
0 No creditable
knowing that theycontent
no longer fully own their business. 0
• Shared decision-making. New partners might not agree with the
Answers couldapproach
include: of the original owner. Previously all decision-making was done
by the sole owner of the business. Agreement would need to be reached
Knowledge and the new partner(s)2 which
withunderstanding marks would take time. Any advantage of quick
• decision-making might be lost
Demonstrates a clear understanding of being a sole trader
• • Shared
Demonstrates profit. understanding
a clear Previously any profit madeawas
of being for the sole owner but after
partnership.
taking in partners any profit would have to be shared between them
• 2 Responsible
Application marks for the actions of the partner(s). The actions of one partner
• are binding on all other partners.
Reference to the disadvantages If one from
of changing partner's actions
a sole result
trader to in
a a large
partnershipdebt, then all partners are liable for that debt whether they agreed with
business.
the action or not.
Analysis 4 marks
Accept any other valid response.
• Loss of ownership. The sole trader might have been the sole owner of
their business for some time and this change would be difficult to take,
knowing that they no longer fully own their business.
• Shared
Question 5 wasdecision-making.
the most popular New partners
choice might not and
for candidates agree with
was the
generally well answered
with many candidates
approach gaining owner.
of the original 5 or more marks. Most
Previously candidates clearly
all decision-making wasunderstood
done the two
by the sole owner of the business. Agreement would need to be reached
with the new partner(s) which would take time. Any advantage of quick
decision-making might be lost
• Shared profit. Previously any profit made was for the sole owner but after
taking in partners any profit would have to be shared between them
• Responsible for the actions of the partner(s). The actions of one partner
 9609/01 types of business ownership
different Cambridge
(soleInternational
trader and AS &partnership)
A Level – Mark Scheme
and were able to provide For examination
some appropriate application and analysis. The most SPECIMEN
common disadvantage that gained from 2023
analysis was shared profit and how it would have to be divided amongst all the partners,
Section B meaning less profit compared to when they were a sole trader. Shared decision
potentially
making was also a common disadvantage that gained analysis with stronger responses able
toTable
explain
D how slower decision making could lead to missed business opportunities. Weaker
candidates tended to understand what the disadvantages were but were unable to develop
their answers.
Use this table to give marks for each candidate response for Questions 5(a) and 6(a).

Level AO1 Knowledge and understanding AO2 Application AO3 Analysis

2 marks 2 marks 4 marks
Description Description Description
2 3–4 marks
Developed analysis
• Developed analysis that identifies
connections between causes, impacts
and/or consequences of two points.
[4 marks]

• Developed analysis that identifies

connections between causes, impacts
and/or consequences of one point.
[3 marks]
1 1–2 marks 1–2 marks 1–2 marks
• Knowledge of two relevant points is • Application of two relevant points to a Limited analysis
used to answer the question. business context. • Limited analysis that identifies
[2 marks] [2 marks] connections between causes, impacts
and/or consequences of two points.
• Knowledge of one relevant point is • Application of one relevant point to a [2 marks]
used to answer the question. business context.
[1 mark] [1 mark] • Limited analysis that identifies
connections between causes, impacts
and/or consequences of one point.
[1 mark]
0 0 marks 0 marks 0 marks
No creditable response. No creditable response. No creditable response.

© UCLES 2020 Page 15 of 22