FOUNDATION EXAMINATION

Exam Bank 007 – December 2013

Business Studies 1 MARK SCHEME

BELLERBYS COLLEGE

FOUNDATION EXAMINATION

SECTION A – SHORT ANSWER QUESTIONS
Answer ALL questions in this section.

1.

Name two things that should be present in a good business plan. Executive summary, location, marketing, finance, financial forecasts, personnel Any other reasonable answer should be accepted. 1 mark per relevant point given.
(2 marks)

2.

Using an example for each point, identify and explain one reason for business success and one different reason for failure. Note: the reason for success should not be repeated as a reason for failure, for example, good entrepreneurial skills (reason for success) bad entrepreneurial skills (reason for failure). Possible answers include: Reasons for success: Excellent entrepreneurial skills Good business plan Marketable products Good budgeting skills Reasons for failure: Poor planning Inexperience Harsh external economic climate Fierce competition Lack of cash flow Any reasonable answer should be awarded marks. 1 mark for identification, 2 marks for a reasonable/good explanation and the full 3 marks given for an excellent explanation with relevant examples.
(6 marks)

Questions continued on next page
Business1-JP-L-007 Page 2 of 15

BELLERBYS COLLEGE

FOUNDATION EXAMINATION

3.

Give one example of a good SMART objective. For example, to increase market share by 15% by January 2015. 1 mark for a partial example, 2 marks for a reasonable example with one point omitted, 3 marks for a proper SMART objective.
(3 marks)

4.

Explain the term sole trader. Sole trader is a type of business which is owned and run by one individual. The individual is personally responsible for any debts that the business incurs. 1 mark for partial explanation. 2 marks for reasonable but incomplete explanation. 3