Business Studies · May / June 2016 · Paper 21 · Question 1

Identify and explain one advantage and one disadvantage to Rosa and Eduardo of forming a business partnership. [8]

Knowledge [2 × 1] award one mark for each relevant advantage/disadvantage Analysis [2 × 1] award one mark for a relevant explanation of each advantage/disadvantage Application [2 × 2] award two application marks for each advantage/disadvantage Award one mark for each relevant advantage/disadvantage (maximum of two), such as:

business set-up 10 years ago in country X;

$50 000 each partner;

largest dentist clinics in the country;

1 general manager for the clinic;

bank loan to pay for new computer system;

reputation for high quality treatments;

private patients;

3 months to pay for treatment;

move to larger premises;

offer teeth whitening;

job vacancies for dentists and assistants;

information from Appendix 1 and 2. There may be other examples in context which have not been included here.

Consider an objective of each of the following three stakeholder groups of DDC. Do you think there will be conflict between the objectives of each of these stakeholder groups? Justify your answer. [12]

Relevant points might include:

make profit;

expand to gain economies of scale;

provide a high quality service

affordable prices

secure job;

good working conditions. Knowledge/Analysis/Evaluation – award up to ten marks using the levels-based mark scheme below. Knowledge/Analysis/Evaluation Level 3 At least 2 × Level 2 + 7–10 marks Well justified conclusion as to whether there will be conflict between the different stakeholder groups. Level 2 4–6 marks Detailed discussion of the objective of each stakeholder group. Level 1 1–3 marks Stakeholder group objective outlined. Level 1 One mark for each L1 statement (max of three marks) e.g. Employees want their jobs to be secure. Level 2 One L2 explanation can gain four marks and a further mark can be awarded for each additional L2 explanation (max six marks) e.g. Employees will want their jobs to be secure so they will keep receiving a wage for working in the dentist clinic. If the business is successful then they are likely to keep their jobs but if not then they will be made redundant and will receive no wage at all. (Four marks for L2 answer + one application mark for answering in the context of the dental clinic.) Level 3 For L3 to be awarded there needs to be at least two L2 marks awarded and then a conclusion which justifies whether conflict between the different stakeholder groups is likely to occur. Award up to two additional marks for relevant application. Possible application marks: qualified dentists;

business set-up 10 years ago in country X;

$50 000 each partner;

largest dentist clinics in the country;

pay high prices;

employs 8 dentists, 10 assistants, 3 receptionists, 1 general manager for the clinic;

new computer system requires fewer receptionists;

reputation for high quality treatments;

private patients;

3 months to pay for treatment;

move to larger premises;

offer teeth whitening;

increasing number of Government-owned dentist clinics;

job vacancies for dentists and assistants;

information from Appendix 1 and 2. There may be other examples in context which have not been included here.