4bs1 01r Rms 20230824

Mark Scheme (Results)
Summer 2023
International GCSE
Business (4BS1 01R)
Paper 1R: Investigating small businesses
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June 2023
Question Paper Log Number P72952A
Publications Code 4BS1_01R_2306_MS*
All the material in this publication is copyright
© Pearson Education Ltd 2023
4BS1/01R Summer 2023

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.

Question Which one of the following describes a minimum Mark
Number wage?
Answer
1 (a) (i) AO1 - 1 mark
The only correct answer is B – The lowest

amount a business can legally pay its
employees
A – Fixed amount per year and paid monthly –

this is not the correct answer as it is a salary
C – Payment made to an employee for working
additional hours – this is not the correct answer
as it is overtime
D – Payment made to an employee for reaching
a target – this is not the correct answer as it is a
bonus (1)
Question Which one of the following describes the cash Mark

Number cow category in the Boston matrix?
Answer
1 (a) (ii) AO1 - 1 mark
The only correct answer is C – Low market

growth, high market share
A – High market growth, high market share –

this is not correct as it is the star category
B – High market growth, low market share - this
is not correct as it is the question mark category
D – Low market growth, low market share - this
is not correct as it is the dog category (1)

Question Which one of the following would give a business Mark
Number a negative cash flow?
Answer
1 (a) (iii) AO1 - 1 mark
The only correct answer is D – Cash outflow

is greater than cash inflow
A – Cash inflow is greater than cash outflow –

this is not correct as it would give the business
positive cash flow
B – Costs are greater than profits – this is not
correct as it would give the business a loss
C – Profits are greater than costs – this is not
correct as it would give the business profit (1)
Question Which one of the following is a recruitment Mark

Number document that outlines the tasks and
responsibilities of a job?
Answer
1 (a) (iv) AO1 - 1 mark
The only correct answer is A – Job

description
B – Person specification - this is not correct as it

is a document outlining person attributes
C – Application form – this is not correct as it is
a form potential employees fill in
D – Curriculum vitae – this is not correct as it is
a document outlining the skills, experiences and
qualifications of the potential employee (1)
Question Which one of the following is the total cost, in Mark

Number euros, of buying a four week supply of wrapping
paper?
Answer
1 (a) (v) AO2 - 1 mark
The only correct answer is C – €317.40
A – €79.35 – this is not the correct answer as it

is the cost of 150 metres of wrapping paper for a
week
B – €276.00 – this is not the correct answer as it
is 4 weeks of wrapping paper in pounds
D – €396.75 – this is not the correct answer as it
is 5 weeks of wrapping paper in euros (1)

Question Which one of the following is the markup for a Mark
Number selection of traditional flowers?
Answer
1 (a) (vi) AO2 - 1 mark
The only correct answer is A – 54.76%
B – 64.62% – this is not the correct answer as it

is 42/65 x100
C – 182.61% – this is not the correct answer as
it is 42/23 x100
D – 282.61% – this is not the correct answer as
it is 65/23 x100 (1)
Question Define the term economies of scale. Mark

Number Answer
1 (b) AO1 - 1 mark
Award 1 mark for a correct definition of
economies of scale.
• A fall in average costs as output increases

(1)
(1)
Question Define the term stakeholder. Mark

Number Answer
1 (c) AO1 - 1 mark
Award 1 mark for a correct definition of
stakeholder.
• Individuals or groups with an interest in the

operation of a business (1)
(1)

Question State one benefit to Aude Rose of using just-in- Mark
Number time (JIT) production.
Answer
1 (d) A02 - 1 mark
Award 1 mark for a benefit to Aude Rose of using
just-in-time production in the context of the
business.
• Aude Rose will have less waste as the

flowers will be fresh when delivered to the
Paris shop (1)
NB Do not accept a benefit that is not in the

context of Aude Rose.
Accept any other appropriate response.

(1)
Question Calculate how many Additional Mark

Number bunches of flowers will guidance
Aude Rose have to sell to
break-even.
Answer
1 (e) Award 1 mark for
A02 - 2 marks correctly
substituting
50 000/(50 – 10) (1) numbers into
formula.
= 1 250 (1)
Award full marks for
correct numerical (2)
answer without
working.

Question Explain one reason why a business might fail. Mark
Number Answer
1 (f) A01 - 3 marks
Award 1 mark for identification of a reason why a

business might fail, plus 2 further marks for
explaining the reason, for a maximum of 3
marks.
• A lack of finance (1) from poor cashflow

can lead to its failure (1) leading to an
issue of paying for inventory to sell on to
customers (1)
NB Answers that list three reasons with no

explanation will get 1 mark only.
Accept any other appropriate response. (3)

Question Analyse the importance to Aude Anglaret of Mark
Number motivating her employees.
Indicative content
1 (g) AO2 = 3 marks AO3 = 3 marks
AO2
• If the florists are motivated, they could
produce more bunches of flowers for sale
to customers
• The florists are more likely to stay in the
flower shop if they are paid more
AO3
• Increased productivity could lead to
greater outputs and more sales
• Employees who stay will reduce the cost of
recruitment and training of new
employees (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
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
issues to the business context
throughout. (AO2)
and/or issues, finding detailed
interconnected points with logical chains
of reasoning. (AO3)

Question State one fringe benefit Aude Rose could offer Mark
Number its employees.
Answer
2 (a) A02 - 1 mark
Award 1 mark for a valid fringe benefit Aude

Rose could offer its employees in the context of
the business.
• It could offer its employees training for a

qualification as a florist (1)
NB Do not accept a fringe benefit that is not in

the context of Aude Rose.

Question State one reason why branding is important to Mark
Number Aude Rose.
Answer
2 (b) A02 - 1 mark
Award 1 mark for a valid reason why branding is

important to Aude Rose in the context of the
business.
• It makes the business stand out against

other flower shops in Paris (1)
NB Do not accept a reason that is not in the


Question Explain one impact of ineffective communication Mark
Number on a business.
Answer
2 (c) A01 - 3 marks
Award 1 mark for identification of an impact of

ineffective communication on a business, plus 2
further marks for explaining the impact, for a
maximum of 3 marks.
• More mistakes could be made (1) as

employees will not know what they are
doing (1) leading to low customer
satisfaction (1)
NB Answers that list three impacts with no

Question Explain one advantage of a partnership. Mark

Number Answer
2 (d) A01 - 3 marks
Award 1 mark for identification of an advantage

of a partnership, plus 2 further marks for
explaining this advantage, for a maximum of 3
marks.
• Different partners may have different skills

(1) and be able to offer a wider range of
services (1) which could lead to increased
business (1)
NB Answers that list three advantages with no

Accept any other appropriate response.

(3)

Question Explain one disadvantage to a business of Mark
Number product orientation.
Answer
2 (e) A01 - 3 marks
Award 1 mark for the identification of a

disadvantage to a business of product
orientation, plus 2 further marks for explaining
that disadvantage, for a maximum of 3 marks.
• Product may not suit the needs of the

customer (1) so potential customers may
go elsewhere (1) resulting in the business
losing sales (1)
NB Answers that list three disadvantages with no


Question Aude Rose is considering two options. Mark
Number Option 1: sponsor a local event such as a flower
show
Option 2: advertise, using leaflets around Paris.
Justify which one of these two options Aude Rose
should choose.
Indicative content
2 (f) AO2 = 3 marks AO3 = 3 marks
AO4 = 3 marks
AO2
• Option 1 – The event will increase the
awareness of her flower shop
• Option 2 – Leaflets can be handed out to
passing tourists to draw them to the
flower shop
AO3
• Option 1 – If the flower show is a
success, potential customers will have a
positive opinion of Aude Rose
• Option 2 – The leaflet can include more
information such as shop opening hours
and the range of flowers being sold
AO4
• Option 1 – However, these events can be
expensive to sponsor so whilst sales may
increase there is no guarantee profits will
increase
• Option 2 – However, this would mean
that someone would have to take time out
of the shop to hand out the leaflets or
increase costs by paying someone to hand
them out (9)

(AO3)
• Makes a judgement, providing a simple
justification based on limited evaluation
of business information and issues
relevant to the choice made. (AO4)
(AO2)
• Makes a judgement, providing a
justification based on sound evaluation
throughout. (AO2)
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)

Question Define the term variable costs. Mark
Number Answer
3 (a) A01 - 1 mark
Award 1 mark for a correct definition of variable

costs.
• Costs that vary as output levels change

(1)
(1)
Question Outline one way Aude Rose could extend the Mark
Number product life cycle of one its products.
Answer
3 (b) A02 - 2 marks
Award 1 mark for identifying a way Aude Rose

could extend the product life cycle of one of its
products, plus 1 further mark for linking it to the
context of the question.
• Aude Rose could lower the prices of its

least popular flowers (1) encouraging
sales of that variety over other flowers (1)
NB Do not accept a way that is not in the

Question Calculate, to two decimal Additional Mark

Number places, the percentage guidance
decrease in retained profits
from 2021 to 2022.
Answer
3 (c) A02 - 2 marks
Award 1 mark for
16 260 – 12 594 correctly
substituting
= 3666/16260 x 100 (1) numbers into
formula.
= 22.55 (1)
Award full marks
for correct
numerical answer
without working. (2)

Question Analyse the impact on Aude Rose of using its Mark
Number retained profits for this proposed development.
Indicative content
3 (d) AO2 = 3 marks AO3 = 3 marks
AO2
• By using retained profit Aude Rose can
buy the flowers straight away
• Retained profit can only be used to buy a
wider range of flowers if it exists
AO3
• This source of finance does not need to be
paid back so any profit made from the
new flowers can go back into the flower
shop business
• There is no guarantee that Aude Rose will
have enough profit to buy this new range
of flowers so may have to wait to
accumulate more retained profits (6)

(AO3)
(AO2)

throughout. (AO2)
of reasoning. (AO3)
Question Aude Rose is considering two options: Mark
Number Option 1: hand out questionnaires to customers
that visit the shop
Option 2: using the internet to research new
trends.
Justify which one of these two options Aude
Rose should choose.
Indicative content
3 (e) AO2 = 3 marks AO3 = 3 marks
AO4 = 3 marks
AO2
• Option 1 – By using questionnaires Aude
Rose could get feedback straight away
from customers when buying flowers in
the shop
• Option 2 – Aude Rose can view a large
selection of flower-based websites
AO3
• Option 1 – The feedback might give the
business more information about what
the customers want from the flower shop
and changes as trends develop
• Option 2 – It will be less time consuming
as it can find the exact information it is
looking for and compare it to the types of
flowers it currently offers
AO4
• Option 1 – However, customers may not

know about the new trends so cannot
give any constructive feedback on the
purpose of the research being conducted
• Option 2 – However, whilst this research
can give information about up-and-
coming trends it gives no specific
information on the demand for the new
trends by its existing customers so could
be a waste of time (9)

(AO3)
(AO2)
throughout. (AO2)
of reasoning. (AO3)
(AO4)

Question Calculate, to two Additional guidance Mark
Number decimal places, the
gross profit margin.
Answer
4 (a) A02 - 2 marks Award 1 mark for
correctly substituting
45 024/62 400 x 100 numbers into formula.
(1)
Award full marks for
= 72.15 (1) correct numerical
answer without working. (2)
Question Analyse factors that Aude Rose might consider Mark

Number when measuring the success of its business.
Indicative content
4 (b) AO2 – 3 marks AO3 – 3 marks
AO2
• Aude Rose have grown by opening a larger
shop in the centre of Paris
• By moving to the centre of Paris it has
made possible an increase in the number
of people buying its flowers
AO3
• By moving to a larger shop in a better
location Aude Rose has shown success by
being able to pay the higher rent
• This shows success of the business as
there is a demand for its flowers and they
are willing to increase the risk to the
business by investing in a wider range of
flowers
(6)

(AO3)
(AO2)
throughout. (AO2)
of reasoning. (AO3)

Question Evaluate the usefulness of financial documents to Mark
Number help Aude Rose when deciding to open a second
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 statement of comprehensive income
can show the profit or loss the business
has made by the end of its financial year
• The figures can show how capable the
business is of expanding
AO2
• This can help the business to see how
profitable the flower shop currently is
• This could draw in potential investors who
are interested in the success of the flower
shop
AO3
• This document will be useful to show Aude
Rose how much profit it has to be able to
put towards the expansion or inform a
bank of how much it needs to lend
• The financial documents will outline the
current position of the business and could
include a cash flow forecast projecting net
cash flow in the future
AO4
• However, there are other factors that need
to be considered such as figures from
previous years as well as the affordability
to run the new shop
• However, other factors need to be taken
into consideration such as the location of
the competition which could make it
difficult for the second flower shop to
survive as a new business to that
particular area. (12)

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
(AO3)
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
(AO2)

Level 3 9 - 12 • Demonstrates accurate knowledge and
issues throughout, including appropriate
use of business terminology. (AO1)
• Detailed application of knowledge and
throughout. (AO2)
of reasoning. (AO3)
(AO4)

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Mark Scheme (Results)

Pearson: helping people progress, everywhere

4BS1/01R Summer 2023

• All candidates must receive the same treatment. Examiners

4BS1/01R Summer 2023

The only correct answer is B – The lowest

A – Fixed amount per year and paid monthly –

Question Which one of the following describes the cash Mark

The only correct answer is C – Low market

A – High market growth, high market share –

4BS1/01R Summer 2023

The only correct answer is D – Cash outflow

A – Cash inflow is greater than cash outflow –

Question Which one of the following is a recruitment Mark

The only correct answer is A – Job

B – Person specification - this is not correct as it

Question Which one of the following is the total cost, in Mark

The only correct answer is C – €317.40

A – €79.35 – this is not the correct answer as it

4BS1/01R Summer 2023

The only correct answer is A – 54.76%

B – 64.62% – this is not the correct answer as it

Question Define the term economies of scale. Mark

• A fall in average costs as output increases

Question Define the term stakeholder. Mark

• Individuals or groups with an interest in the

4BS1/01R Summer 2023

• Aude Rose will have less waste as the

NB Do not accept a benefit that is not in the

Accept any other appropriate response.

Question Calculate how many Additional Mark

4BS1/01R Summer 2023

Award 1 mark for identification of a reason why a

• A lack of finance (1) from poor cashflow

NB Answers that list three reasons with no

Accept any other appropriate response. (3)

4BS1/01R Summer 2023

Level Mark Descriptor

4BS1/01R Summer 2023

Award 1 mark for a valid fringe benefit Aude

• It could offer its employees training for a

NB Do not accept a fringe benefit that is not in

Accept any other appropriate response. (1)

4BS1/01R Summer 2023

Award 1 mark for a valid reason why branding is

• It makes the business stand out against

NB Do not accept a reason that is not in the

Accept any other appropriate response. (1)

4BS1/01R Summer 2023

Award 1 mark for identification of an impact of

• More mistakes could be made (1) as

NB Answers that list three impacts with no

Accept any other appropriate response. (3)

Question Explain one advantage of a partnership. Mark

Award 1 mark for identification of an advantage

• Different partners may have different skills

NB Answers that list three advantages with no

Accept any other appropriate response.

4BS1/01R Summer 2023