Business Finance

Worked examples (5)

• 1Distinguish between an aim and an objective (3 marks, Paper 1)
• 2Match the right objective to the right business (4 marks, Paper 1)
• 3Re-write a weak objective as SMART (4 marks, Paper 1)
• 4Discuss how a recession changes business objectives (6 marks, Paper 1)
• 5Stakeholder conflict over objectives (9 marks, Paper 2)

Model answers (4)

• ✓Model answer — 4BS1-style — Paper 1, 6 mark recommend
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate
• ✓Model answer — 4BS1-style — Paper 1, 9 mark discuss
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate (challenge)

Worked examples (8)

• 1Explain the difference between limited and unlimited liability (4 marks, Paper 1)
• 2Outline two advantages and two disadvantages of being a sole trader (4 marks, Paper 1)
• 3Why is a Deed of Partnership important? (3 marks, Paper 1)
• 4Should the firm convert from sole trader to Ltd? (6 marks, Paper 1)
• 5Drawback of becoming a PLC — takeover risk (4 marks, Paper 2)
• 6Franchise vs starting your own business (6 marks, Paper 1)
• 7When is a social enterprise the right structure? (5 marks, Paper 2)
• 8Recommend a business structure for a case-study business (9 marks, Paper 1)

Model answers (4)

• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate
• ✓Model answer — 4BS1-style — Paper 2, 8 mark explain
• ✓Model answer — 4BS1-style — Paper 1, 9 mark recommend
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate (challenge)

Worked examples (5)

• 1Classify each business into the correct sector (4 marks, Paper 1)
• 2Trace a product through the chain of production (5 marks, Paper 1)
• 3Explain why a state may keep a service in the public sector (6 marks, Paper 2)
• 4Compare two measures of business size (4 marks, Paper 1)
• 5Why does the sector mix change as a country develops? (6 marks, Paper 2)

Model answers (4)

• ✓Model answer — 4BS1-style — Paper 1, 6 mark explain
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate
• ✓Model answer — 4BS1-style — Paper 1, 8 mark explain
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate (challenge)

Worked examples (5)

• 1Why location decisions are a trade-off (3 marks, Paper 1)
• 2Recommend a location for a new coffee shop (6 marks, Paper 1)
• 3Factors influencing a multinational's choice of country (8 marks, Paper 2)
• 4Cost-benefit analysis of relocation (9 marks, Paper 2)
• 5How technology has changed location decisions (5 marks, Paper 1)

Model answers (4)

• ✓Model answer — 4BS1-style — Paper 1, 9 mark explain
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate
• ✓Model answer — 4BS1-style — Paper 2, 8 mark explain
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate (challenge)

Worked examples (6)

• 1State four impacts of globalisation on a small UK business (4 marks, Paper 2)
• 2Impact of an MNC opening a factory in a developing country (6 marks, Paper 2)
• 3Impact of a new tariff on a business (6 marks, Paper 2)
• 4Advantages of locating inside a trade bloc (5 marks, Paper 2)
• 5Impact of a falling pound on an importer and an exporter (6 marks, Paper 2)
• 6Net impact of globalisation on a domestic supermarket (6 marks, Paper 2)

Model answers (4)

• ✓Model answer — 4BS1-style — Paper 2, 8 mark explain
• ✓Model answer — 4BS1-style — Paper 2, 9 mark discuss
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate (challenge)

Worked examples (5)

• 1Apply PESTLE to a coffee shop chain (6 marks, Paper 2)
• 2Impact of a recession on different business types (6 marks, Paper 2)
• 3Impact of AI on a customer service operation (5 marks, Paper 2)
• 4Impact of ethical pressure on a clothing brand (6 marks, Paper 2)
• 5Impact of an ageing population on a fitness chain (4 marks, Paper 2)

Model answers (4)

• ✓Model answer — 4BS1-style — Paper 2, 8 mark explain + recommend
• ✓Model answer — 4BS1-style — Paper 2, 9 mark discuss
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate (challenge)

Worked examples (5)

• 1Name and define two government economic objectives (4 marks, Paper 2)
• 2How a corporation tax rise affects a manufacturer (5 marks, Paper 2)
• 3Impact of an interest rate rise on different business types (6 marks, Paper 2)
• 4Impact of new environmental regulation (5 marks, Paper 2)
• 5Apply the policy-framework approach (6 marks, Paper 2)

Model answers (4)

• ✓Model answer — 4BS1-style — Paper 2, 8 mark explain + discuss
• ✓Model answer — 4BS1-style — Paper 2, 9 mark discuss
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate (challenge)

Worked examples (4)

• 1State four ways business success can be measured (4 marks, Paper 1)
• 2Explain two reasons businesses succeed (6 marks, Paper 1)
• 3Explain why a profitable business can still fail (5 marks, Paper 1)
• 4Why are new businesses especially likely to fail? (4 marks, Paper 1)

Model answers (4)

• ✓Model answer — 4BS1-style — Paper 1, 8 mark explain
• ✓Model answer — 4BS1-style — Paper 2, 9 mark discuss
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate (challenge)