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4 Types of business organisation- Sample answers to short answer and data response question 1

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25 views

4 Types of business organisation- Sample answers to short answer and data response question 1

Uploaded by

Aariish Singhi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Cambridge IGCSE™ and O Level Business Studies

Section 1: Understanding business activity Chapter 4: Types of business


organisation

Sample answers to exam-style


questions: Short answer and data
response
The answers, marks awarded and comments that appear in this material were written by the authors. In
examination, the way marks would be awarded to answers like these may be different.

1
a A person who owns his/her own business [1] and controls it on his/her own. [1]
b
i Partnership
ii Private limited companies
Other answers are possible.
c
i He enjoys independence. Jameel does not like taking orders.
ii He will be able to keep all of the profits. He has lost his job so needs a regular income.
d
i Lack of capital. He has limited savings and he will need to pay for shop premises.
ii No experience in operating his own shop/business – working in one is not the same, and
it closed down anyway – so this might suggest a risky venture that could put all his
assets at risk.
e Yes: able to expand more quickly than opening new branches themselves; capital might
still be limited if it has not been in business long; gets his business name more widely
known; capital injection from franchisees.
No: rapid expansion may be difficult for the retail business to control; success of the
business will now depend on skills of franchisees.
Student’s overall conclusion, e.g.: No because Jameel has not been trading very long and it
needs to be an established business with a brand name for people to be willing to buy a
franchise. He is also an independent man and wants to remain in control, so he would be
better to open his own branches of his business.
Up to 2 marks for identification of relevant issues.
Up to 2 marks for relevant development of points.
Up to 2 marks for justified decision.

Cambridge IGCSE™ and O Level Business Studies Online Teacher Guide, Hodder & Stoughton Limited 1
© Karen Borrington and Peter Stimpson 2018

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