Mark Scheme (provision)

Summer 2021

Pearson Edexcel International GCSE

In Business 4BS1
Paper 01
Investigating small businesses

4BS1 01 Summer 2021

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Summer 2021
Publications Code 4BS1_01_2106_MS
All the material in this publication is copyright
© Pearson Education Ltd 2021

4BS1/01 Summer 2021

General Marking Guidance

• All candidates must receive the same treatment. Examiners must mark the
first candidate in exactly the same way as they mark the last.

• Mark schemes should be applied positively. Candidates must be rewarded

for what they have shown they can do rather than penalised for omissions.

• Examiners should mark according to the mark scheme not according to

their perception of where the grade boundaries may lie.

• There is no ceiling on achievement. All marks on the mark scheme should

be used appropriately.

• All the marks on the mark scheme are designed to be awarded. Examiners
should always award full marks if deserved, i.e. if the answer matches the
mark scheme. Examiners should also be prepared to award zero marks if
the candidate’s response is not worthy of credit according to the mark
scheme.

• Where some judgement is required, mark schemes will provide the

principles by which marks will be awarded and exemplification may be
limited.

• When examiners are in doubt regarding the application of the mark scheme
to a candidate’s response, the team leader must be consulted.

• Crossed out work should be marked UNLESS the candidate has replaced it
with an alternative response.

• Mark schemes will indicate within the table where, and which strands of
QWC, are being assessed. The strands are as follows:

i) ensure that text is legible and that spelling, punctuation and grammar
are accurate so that meaning is clear
ii) select and use a form and style of writing appropriate to purpose and to
complex subject matter
iii) organise information clearly and coherently, using specialist vocabulary
when appropriate.

4BS1/01 Summer 2021

Question Answer Mark
Number
1 (a) (i) AO1 - 1 mark

The only correct answer is C

A is not correct because personal savings are an

internal source of finance

B is not correct because retained profit is an internal

source of finance

D is not correct because selling assets is an internal

source of finance
(1)

Question Answer Mark

Number
1 (a) (ii) AO1 - 1 mark

The only correct answer is B

A is not correct because penetration pricing is where a

business sets a low price for a new product

C is not correct because competition pricing is where a

business sets a price for a product in line with its
competitors

D is not correct because promotional pricing is where a

business lowers the price of a product for a short time
(1)

Question Answer Mark

Number
1 (a) (iii) AO1 - 1 mark

The only correct answer is A

B is not correct because discrimination by ability is not

protected by legislation

C is not correct because social discrimination is not

protected by legislation

D is not correct because ethical discrimination is not

protected by legislation
(1)

4BS1/01 Summer 2021

Question Answer Mark
Number
1 (a) (iv) AO1 - 1 mark

The only correct answer is D

A is not correct because a curriculum vitae would be

sent to the employer

B is not correct because a letter of application would be

sent to the employer

C is not correct because a newspaper advertisement

would be used to advertise the job vacancy
(1)

Question Answer Mark

Number
1 (a) (v) AO2 - 1 mark

The only correct answer is B

A is not correct because it is the exchange rate in euros

C is not correct because it is the cost of 1kg of dried

fruits

D is not correct because it is the cost of 1kg of dried

fruits added to the exchange rate of the euro
(1)

Question Answer Mark

Number
1 (a) (vi) AO2 - 1 mark

The only correct answer is C

A is not correct because it is the cost of a jar of honey

formatted as a percentage

B is not correct because it is the selling price of a jar of

honey minus the cost of a jar of honey as a percentage

D is not correct because it is double the mark up of a

jar of honey
(1)

4BS1/01 Summer 2021

Question Define the term profit Mark
Number
Answer
1 (b) AO1 - 1 mark

Award 1 mark for a correct definition of profit.

• Total revenue – total costs (1).

(1)

Question Define the term non-current liabilities Mark

Number
Answer
1 (c) AO1 - 1 mark

Award 1 mark for a correct definition of

non-current liabilities.

• Debts that are payable after 12 months (1).

(1)

Question State one reason why NOF segments its target market Mark
Number by income

Answer
1 (d) A02 - 1 mark

Award 1 mark for a reason why NOF segments its

target market by income.

• NOF can sell higher priced organic products to

people staying at the farm (1).

Accept any other appropriate response.

(1)

Question Answer Additional guidance Mark

Number

1 (e) A02 - 2 marks

Award 1 mark for
90 – 10 = 80 (1) correctly substituting
numbers into formula.
80/160 x 100 = 50 (1)
Award full marks for
correct numerical answer
without working. (2)

4BS1/01 Summer 2021

Question Explain one strategy a small business might use to Mark
Number extend the product life cycle of one of its products

Answer
1 (f) A01 - 3 marks

Award 1 mark for identification of a strategy of

extending a product life cycle, plus 2 further marks for
explaining the impact, for a maximum of 3 marks.

• Local advertising could extend the life cycle of a

product (1). A small business could deliver
leaflets to the local area to increase customer
awareness of a product (1) leading to a
potential increase in sales (1).

NB Answers that list three strategies with no

explanation will get a maximum of 1 mark.

Accept any other appropriate response.

(3)

4BS1/01 Summer 2021

Question Analyse the importance of marketing to NOF Mark
Number
Indicative content
1 (g) AO2 = 3 marks AO3 = 3 marks

AO2
• Result from marketing would enable NOF to
adapt its overnight accommodation to what the
customers want.
• Marketing can be used to make customers
aware of its organic honey.

AO3
• This may lead to increased bookings for the
overnight accommodation.
• Sales of organic honey may increase. (6)

Level Mark Descriptor

0 No rewardable material.
Level 1 1–2 • Limited application of knowledge and
understanding of business concepts and
issues to the business context. (AO2)
• Attempts to deconstruct business information
and/or issues, finding limited connections
between points. (AO3)
Level 2 3–4 • Sound application of knowledge and
understanding of business concepts and
issues to the business context although there
may be some inconsistencies. (AO2)
• Deconstructs business information and/or
issues, finding interconnected points with
chains of reasoning, although there may be
some logical inconsistencies. (AO3)
Level 3 5–6 • Detailed application of knowledge and
understanding of business concepts and
issues to the business context throughout.
(AO2)
• Deconstructs business information and/or
issues, finding detailed interconnected points
with logical chains of reasoning. (AO3)

4BS1/01 Summer 2021

Question State one external factor that could cause a change in Mark
Number demand for NOF products

Answer
2 (a) A02 - 1 mark

Award 1 mark for a valid external factor in the context

of the business.

• A change in demand patterns could lead to

people buying more organic farmed produce
(1).

Accept any other appropriate response.

(1)

Question State one reason why NOF might use other retailers to Mark
Number sell its products

Answer
2 (b) A02 - 1 mark

Award 1 mark for a valid reason of using retailers in the

context of the business.

• NOF is able to sell its organic farmed produce to

other outlets giving it a wider market (1).

Accept any other appropriate response.

(1)

Question Explain one benefit to a business of using secondary Mark

Number market research

Answer
2 (c) A01 - 3 marks

Award 1 mark for identification of a benefit to a

business of using secondary market research, plus 2
further marks for explaining this benefit for a business,
for a maximum of 3 marks.

• Businesses save money by not carrying out the

research themselves (1) as the information is
freely accessible on the internet (1) and they
can access a large amount of information at no
cost (1).

NB Answers that list three benefits with no explanation

will get a maximum of 1 mark.

Accept any other appropriate response.

(3)

4BS1/01 Summer 2021

Question Explain one limitation of a cash flow forecast when Mark
Number making business decisions

Answer
2 (d) A01 - 3 marks

Award 1 mark for identification of a limitation of a cash

flow forecast, plus 2 further marks for explaining this
limitation, for a maximum of 3 marks.

• A limitation is that it is a forecast not actual

figure (1). The forecast does not show what
happens if goods are not sold (1) or provide a
contingency plan if this occurs (1).

NB Answers that list three limitations with no

explanation will get a maximum of 1 mark.

Accept any other appropriate response.

(3)

Question Explain one benefit to a business of using Mark

Number crowdfunding as a source of finance

Answer
2 (e) A01 - 3 marks

Award 1 mark for the identification of a benefit of using

crowdfunding as a source of finance, plus 2 further
marks for explaining that benefit, for a maximum of 3
marks.

• Crowdfunding can be a fast way to raise finance

(1) from many small investors (1) when no
other lender may be available (1)

NB Answers that list three benefits with no explanation

will get a maximum of 1 mark.

Accept any other appropriate response. (3)

4BS1/01 Summer 2021

Question NOF is considering two options to introduce the product Mark
Number into the market:
Option 1: offering a low introductory price for three
months
Option 2: selling at the same price as competitors.
Justify which one of these two options NOF should
choose.

Indicative content
2 (f) AO2 = 3 marks AO3 = 3 marks
AO4 = 3 marks

AO2
• Option 1 – By offering an introductory price
could entice shoppers in the farm shop to try
the popcorn.

• Option 2 – Customers might recognise the

farm’s name so will buy the popcorn when
comparing to its competition.

AO3
• Option 1 – This could lead to an increase in
sales due to the low price and will increase
revenue.

• Option 2 – NOF could see an increase in

customers as it is a local brand that people trust
so are more willing to buy a new product that it
launches.

AO4
• Option 1 – However, the profit on each bag of
popcorn will be low even though sales may
increase so in the short-term profits might
suffer.

• Option 2 – However, as they do not have an

established brand of popcorn customers may
choose to buy a more popular branded popcorn
they know. (9)

4BS1/01 Summer 2021

Level Mark Descriptor
0 No rewardable material.
Level 1 1–3 • Limited application of knowledge and
understanding of business concepts and
issues to the business context. (AO2)
• Attempts to deconstruct business information
and/or issues, finding limited connections
between points. (AO3)
• Makes a judgement, providing a simple
justification based on limited evaluation of
business information and issues relevant to
the choice made. (AO4)
Level 2 4–6 • Sound application of knowledge and
understanding of business concepts and
issues to the business context although there
may be some inconsistencies. (AO2)
• Deconstructs business information and/or
issues, finding interconnected points with
chains of reasoning, although there may be
some logical inconsistencies. (AO3)
• Makes a judgement, providing a justification
based on sound evaluation of business
information and issues relevant to the choice
made. (AO4)
Level 3 7– 9 • Detailed application of knowledge and
understanding of business concepts and
issues to the business context throughout.
(AO2)
• Deconstructs business information and/or
issues, finding detailed interconnected points
with logical chains of reasoning. (AO3)
• Makes a judgement, providing a clear
justification based on a thorough evaluation of
business information and issues relevant to
the choice made. (AO4)

4BS1/01 Summer 2021

Question Define the term remuneration Mark
Number
Answer
3 (a) A01 - 1 mark

Award 1 mark for a correct definition of remuneration.

• Money paid for work or a service (1)

(1)

Question Outline one reason why NOF would choose to use Mark
Number seasonal staff when harvesting its products

Answer
3 (b) A02 - 2 marks

Award 1 mark for identifying a reason why NOF would

choose to use seasonal staff, plus 1 further mark for
linking it to the context of the question.

• As a farm NOF will harvest different crops at

different times (1) demand will then increase
for seasonal workers at those times (1)

NB Do not accept a reason that is not in the context of

NOF.

Accept any other appropriate response.

(2)

Question Answer Additional Mark

Number guidance

3 (c) A02 - 2 marks

2.50 – 1.10 = 1.40 (1)

77÷1.40 = 55 (1) Award 1 mark for

correctly substituting
OR numbers into
formula.
77 ÷ 1.40 (1)

= 55 (1) Award two marks for

correct numerical (2)
answer without
working.

4BS1/01 Summer 2021

Question Analyse how useful break-even calculations can be for Mark
Number NOF when deciding whether to include ice cream in its
product range

Indicative content
3 (d) AO2 = 3 marks AO3 = 3 marks

AO2
• NOF can see that it will need to sell 55 ice
creams each day to break even.
• NOF can use this information to decide if it can
sell 55 tubs a day, 365 days a year.

AO3
• It will help NOF to see at what point it starts
making a profit and can ask ‘what if’ questions
to see what impact it has on the break-even
point.
• This might stop NOF from making ice creams as
it may not be able to sell 55 tubs all year round.
(6)

Level Mark Descriptor

0 No rewardable material.
Level 1 1–2 • Limited application of knowledge and
understanding of business concepts and
issues to the business context. (AO2)
• Attempts to deconstruct business information
and/or issues, finding limited connections
between points. (AO3)
Level 2 3–4 • Sound application of knowledge and
understanding of business concepts and
issues to the business context although there
may be some inconsistencies. (AO2)
• Deconstructs business information and/or
issues, finding interconnected points with
chains of reasoning, although there may be
some logical inconsistencies. (AO3)
Level 3 5–6 • Detailed application of knowledge and
understanding of business concepts and
issues to the business context throughout.
(AO2)
• Deconstructs business information and/or
issues, finding detailed interconnected points
with logical chains of reasoning. (AO3)

4BS1/01 Summer 2021

Question To do this NOF is considering two options: Mark
Number Option 1: handing out questionnaires at local retailers
Option 2: using the internet to research other farms.
Justify which one of these two options NOF should choose.

Indicative content
3 (e) AO2 = 3 marks AO3 = 3 marks
AO4 = 3 marks

AO2
• Option 1 – Questionnaires will let NOF approach
potential customers face to face to see what will
attract them to visit the farm.
• Option 2 – NOF can view a large selection of
websites to look at other farms and gather
information.

AO3
• Option 1 – NOF can ask specific questions which will
give it detailed feedback that it can use to help
attract more customers to its farm.
• Option 2 – It will be less time consuming/costly as it
can see what other farms offer already and compare
it to its own to see if it can improve based on this
information.

AO4

• Option 1 – However, NOF may not get all of the

information it requires or people may not want to fill
in the questionnaires whilst they are shopping so it
might not be very helpful/limited feedback.
• Option 2 – However, NOF may end up spending a
lot of time looking at feedback or outdated
information which will not be very useful for it and it
is not gaining specific feedback on its own farm.
(9)

4BS1/01 Summer 2021

Level Mark Descriptor
0 No rewardable material.
Level 1 1–3 • Limited application of knowledge and
understanding of business concepts and
issues to the business context. (AO2)
• Attempts to deconstruct business information
and/or issues, finding limited connections
between points. (AO3)
• Makes a judgement, providing a simple
justification based on limited evaluation of
business information and issues relevant to
the choice made. (AO4)
Level 2 4–6 • Sound application of knowledge and
understanding of business concepts and
issues to the business context although there
may be some inconsistencies. (AO2)
• Deconstructs business information and/or
issues, finding interconnected points with
chains of reasoning, although there may be
some logical inconsistencies. (AO3)
• Makes a judgement, providing a justification
based on sound evaluation of business
information and issues relevant to the choice
made. (AO4)
Level 3 7– 9 • Detailed application of knowledge and
understanding of business concepts and
issues to the business context throughout.
(AO2)
• Deconstructs business information and/or
issues, finding detailed interconnected points
with logical chains of reasoning. (AO3)
• Makes a judgement, providing a clear
justification based on a thorough evaluation of
business information and issues relevant to
the choice made. (AO4)

4BS1/01 Summer 2021

Question Answer Additional guidance Mark
Number

4 (a) A02 - 2 marks Award 1 mark for correctly

substituting numbers into
300 000/220 000 (1) formula.

= 1.36 (1) Award full marks for correct

numerical answer without
working. (2)

4BS1/01 Summer 2021

Question Analyse the benefits to NOF of using personal savings to Mark
Number expand its product range

Indicative content
4 (b) AO2 – 3 marks AO3 – 3 marks

AO2
• NOF can start making ice cream immediately as
they have the money.
• Amanda and Ken will not have to pay any money
back to their bank.

AO3
• By using personal savings NOF does not have to
go through a lengthy process of taking out a
loan.
• As there is no loan there is no need to be
concerned about monthly repayments/interest
and any profit gained can be used to put back (6)
into the business.
Level Mark Descriptor
0 No rewardable material.
Level 1 1–2 • Limited application of knowledge and
understanding of business concepts and
issues to the business context. (AO2)
• Attempts to deconstruct business information
and/or issues, finding limited connections
between points. (AO3)
Level 2 3–4 • Sound application of knowledge and
understanding of business concepts and
issues to the business context although there
may be some inconsistencies. (AO2)
• Deconstructs business information and/or
issues, finding interconnected points with
chains of reasoning, although there may be
some logical inconsistencies. (AO3)
Level 3 5–6 • Detailed application of knowledge and
understanding of business concepts and
issues to the business context throughout.
(AO2)
• Deconstructs business information and/or
issues, finding detailed interconnected points
with logical chains of reasoning. (AO3)

4BS1/01 Summer 2021

Question Evaluate the factors that NOF might consider when Mark
Number measuring the success of its farm shop. You should use
the information provided as well as your own
knowledge of business

Indicative content
4 (c) AO1 = 3 marks AO2 = 3 marks
AO3 = 3 marks AO4 = 3 marks

AO1
• The profit produced by the farm shop
• The growth of its product range.

AO2
• NOF will be able to see how much profit the
farm shop is making compared to the overnight
accommodation.
• NOF is looking at expanding its product range
which shows it is currently successful in the
products it already sells.

AO3
• By comparing how much profit is made in the
farm shop then NOF can spend money
improving the areas that need developing.
• This shows success of the business as there is a
demand for the products it produces and it is
willing to take a risk by expanding that range.

AO4
• However, an increase in profit is dependent
upon many other factors outside the control of
NOF such as the weather as this could impact
heavily on how much the farm is producing or
how many people want to come and visit the
farm shop.
• However, there is no guarantee that this growth
will be a success at a time when supermarkets
sell the same products cheaper than NOF and
other farms can afford to do.
(12)

4BS1/01 Summer 2021

Level Mark Descriptor
0 No rewardable material.
Level 1 1–4 • Demonstrates elements of knowledge and
understanding of business concepts and
issues, with limited business terminology
used. (AO1)
• Limited application of knowledge and
understanding of business concepts and
issues to the business context. (AO2)
• Attempts to deconstruct business information
and/or issues, finding limited connections
between points. (AO3)
• Makes a judgement, providing a simple
justification based on limited evaluation of
business information and issues relevant to
the choice made. (AO4)
Level 2 5– 8 • Demonstrates mostly accurate knowledge and
understanding of business concepts and
issues including appropriate use of business
terminology in places. (AO1)
• Sound application of knowledge and
understanding of business concepts and
issues to the business context although there
may be some inconsistencies. (AO2)
• Deconstructs business information and/or
issues, finding interconnected points with
chains of reasoning, although there may be
some logical inconsistencies. (AO3)
• Makes a judgement, providing a justification
based on sound evaluation of business
information and issues relevant to the choice
made. (AO4)
Level 3 9–12 • Demonstrates accurate knowledge and
understanding of business concepts and
issues throughout, including appropriate use
of business terminology. (AO1)
• Detailed application of knowledge and
understanding of business concepts and
issues to the business context throughout.
(AO2)
• Deconstructs business information and/or
issues, finding detailed interconnected points
with logical chains of reasoning. (AO3)
• Makes a judgement, providing a clear
justification based on a thorough evaluation of
business information and issues relevant to
the choice made. (AO4)

4BS1/01 Summer 2021