IGCSE Edexcel IGCSE

Commerce (4340)

Summer 2006

Mark Scheme with Examiners’ Report

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Summer 2006

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4340/1F – Foundation Tier QUESTION 1 (a) For each of the following questions, choose the best answer A, B, C

or D and write it in the box. (i) B (ii) A (iii) D (iv) B (v) D

5 marks

(b) Sue Lee’s salary is paid directly to her account every month by credit transfer.

(i) What is the date of the transfer? 1 March

1 mark

(ii) How much is transferred? £840

1 mark

(iii) What was the account balance at the end of the previous month? £221.50

1 mark

(iv) What was the account balance after the salary transfer? £1 061.50

1 mark

(v)

What are the benefits to Sue Lee’s employer of using credit transfer to pay salaries? eg saves cost of making up pay packets

avoids risk of theft through a ‘wages snatch’ saving on number of cheques issued

receipt recorded by bank avoids queries by employees 4+1 or 2+2 or 1+3

4 marks

(c) (i) How many cheque payments are listed on the statement? 4

1 mark

(ii) How could Sue Lee keep her own record of cheque payments? counterfoils/stubs/cheque book record

1 mark

(iii) Give two possible reasons why they are not listed. eg delay in deposit by payee time taken to clear cheques lost in post

1 mark 1 mark 1 mark

(iv) When did the account become overdrawn? 21 March

1 mark

(v) By how much was the account overdrawn? £56.10

1 mark

(vi) Suggest what action the bank might take because the account was overdrawn. eg bank will charge (debit) interest and/or charges close the account take cheque book off

1 mark

(d) (i) On what dates in March did Sue Lee use the bank’s cash machine (dispenser)? 4 March and 9 March

1 mark

(ii) What was the total amount of these withdrawals? £240

1 mark

(iii) State two items required by Sue Lee to use the cash machine (dispenser). debit card/credit card Personal Identification Number (PIN)

1 mark 1 mark

(e) Analyse one advantage and one disadvantage for Sue Lee using Internet banking Advantage eg access bank account details in own home – no need to travel – saves congestion/saves time cost of travel enables banking 24/7 – can bank whenever you like - not restricted by banking hours Disadvantage eg credit card fraud – can obtain bank details – obtain money from account needs a computer – needs to be computer literate computer virus – data is lost Total 30 marks

3 marks 3 marks

QUESTION 2 (a) (i) Identify the missing difficulties shown by A and B and the

missing aids shown by C and D on the diagram. Difficulties Aids A Risk/Damage (Insurance) B Information (Advertising) C (Time) Warehousing/Communications D (Finance) Banking

1 mark 1 mark 1 mark 1 mark

(ii) (iii)

What is meant by a chain of production? Chain of distribution eg shows the different stages of production In the diagram above, when is the chain completed? when the goods reach the consumer

1 mark 1 mark

(iv) Explain the role of manufacturing industry in the chain of production above. Role of manufacturing industry eg purchase raw materials (coffee beans) conversion of raw materials into semi-finished products conversion of raw materials into finished products (jars of coffee)

3 marks

(b) (i) List three services provided for coffee manufacturers. Services for manufacturers eg bulk purchases/distribution storage facilities cash payments

3 marks

(ii) Give three ways in which retailers of instant coffee benefit from wholesaling. Services for retailers eg breaking bulk variety of brands credit

3 marks

(c) Assess the role of wholesale warehouses in the chain of production. Role of wholesale warehouses Benefits eg storage for goods produced ahead of demand storage for seasonal raw materials buffer stocks smooth price fluctuations Disadvantage eg warehousing charges increase retail prices Conclusion eg benefits outweigh the costs: otherwise direct dealing would be universal

1 mark 1 mark 1 mark 1 mark 1 mark 1 mark

(d) Why would a supermarket require a warehouse as part of its premises? eg to obtain goods quickly – in order to replace shelves/increase income to not to run out of stock – so as not to lose customers

4 marks

Total 25 marks

QUESTION 3 – Foundation Tier (4340/1F) / QUESTION 1 – Higher Tier (4340/2H) (a) (i) Identify three different methods John could use to obtain

quotations for fire insurance. Organisations eg insurance companies brokers banks internet

3 marks

(ii) Name the document John will complete when applying for fire insurance. Document Proposal form Note: no marks for application form

1 mark

(iii) Explain the meaning of this requirement ‘utmost good faith’. Utmost good faith Basic statements eg must tell the truth Expanded statements eg permits accurate risk assessment failure to disclose all material facts may void the policy

3 marks

(b) (i) Describe how insurance spreads Spreading risk Basic statements eg policy holders are compensated for loss Expanded statements eg premiums paid into a fund compensation paid out of fund to contributors who suffer loss

4 marks

(ii) Explain the meaning of the term ‘insurable risk’. Insurable risk Basic statements risk that can be covered by an insurance company eg fire Expanded statements measurable by past experience eg the likelihood of fires occurring in a particular region risks that cannot be measured are uninsurable

5 marks

(c) (i) Why can John insure his own shop against damage by fire, but not Amit Khan’s shop next door? Insurable interest Basic statements eg John has an insurable interest in his shop: but none in Amit Khan’s store Expanded statements eg only someone with a direct interest in property may insure it: John would suffer no loss if Amit Khan’s store was fire damaged, so he cannot insure it

4 marks

(ii) State how much compensation John is likely to receive, giving reasons for your answer. Compensation £30 000 (or less if justified) Justification Basic statements eg premises are under-insured adequate premium has not been paid what he was insured for Expanded statements eg nature of risk and the amount of risk determines the premium under-insurance means that John has to bear the uninsured loss

1 mark 4 marks

Total 25 marks

4340/2H – Higher Tier QUESTION 2 (a) Using your knowledge of business organisations, complete the table

below.

Peer and Son’s Superstore plc = public limited company Wren Enterprises Building Society = friendly society TYP Co-operative Society District Office = co-operative R Booksuk Ltd, Publishers = private limited company P Bateman and G Gecko, Solicitors = partnership Ms Nadia Simpson, Independent Designer = sole proprietor/sole trader

1 mark 1 mark 1 mark 1 mark 1 mark 1 mark

(b) Calculate for each shop:

(i) gross profit Gross profit: sales minus cost of stock sold A = £150 000 – 138 0000 = £12 000 B = £24 000 - 16 800 = £7 200

1 mark 1 mark

(ii) net profit Net profit: gross profit minus expenses A = £12 000 – 6 000 = £6 000 B = £7 200 – 1 200 = £6 000

1 mark 1 mark

(iii) rate of turnover Rate of turnover: cost of stock sold = sales minus gross profitcost of av. stock cost of av. stock A = £150 000 – 12 000 = 138 000 = 18.4 7 500 7 500 B = £24 000 – 7 200 = 16 800 = 2.8 6 000 6 000

1 mark 1 mark

(c) (i) Use your calculations from (b) to analyse the differences between the two shops. Analysis of differences Turnover Basic statements eg A has higher sales than B

1 mark

Expanded statements A’s turnover is over 6 times greater than B Profit margin Basic statements eg B makes more profit than A Expanded statements eg B makes £30 profit per £100 of sales A makes only £8 profit for the same value sold Rate of stock turnover eg A is higher type of goods being sold Expenses Basic statements eg A’s expenses are higher in total than those paid by B Expanded statements A’s are larger in total, but only 4% of sales B’s are smaller in total, but 5 % of sales Average stock eg B’s relatively low average stock suggests that this retailer is not selling relatively expensive lines such as jewellery or furniture

1 mark 1 mark 1 mark 1 mark 1 mark 1 mark 1 mark 1 mark

(ii) Suggest why there are differences between the two shops. Profit margins eg B sells higher profit margin lines such as hardware

A sells low profit lines such as food or greengrocery

Expenses e.g. B, the smaller firm, may sell by conventional

methods (higher selling expenses) A has reduced selling expenses through using a

self-service system type of goods sold – A leads with cheaper goods Total 25 marks

4 marks

QUESTION 3 (a) (i) What are the differences between retail markets and

wholesale markets? Markets: retail formed by:

consumers retailers small quantities

wholesale formed by: raw material producers & manufacturers wholesalers & retailers large quantities

1 mark 1 mark 1 mark 1 mark 1 mark 1 mark

(ii) Analyse the role of these markets in assisting production. Retail markets Basic statements eg where consumers buy goods Expanded statements eg last stage in production goods and services Wholesale markets Basic statements eg where wholesalers buy goods break bulk and packs Expanded statements eg raw materials distributed to manufacturers

finished goods distributed from manufacturers to retailers

3 marks 3 marks

(b) Describe how a mail order business is operated Mail order Basic statements eg a form of retailing Expanded statements eg no personal contact

use of agents agents working for commission catalogues advertisements in press, on TV

5 marks

(c) Mail order goods are normally sent by road transport in the home market and increasingly by air transport to customers overseas.

(i) Explain the advantages of using road transport for delivering

mail order goods. eg more flexible – as goods can be sent from depot at any time less handling of goods – reduces the risk of theft or damage

4 marks

(ii) Evaluate two factors that encourage firms to use air transport for the despatch of goods. eg need for speed – especially for perishable/valuable goods growth of global economy – increasing demand for foreign goods larger carrying capacity/more airports – making it more possible to use air distance/overseas

6 marks

Total 25 marks

QUESTION 4 (a) (i) What percentage of total advertising expenditure is spent on

the smallest medium? Show your working. 3680,000000/130,000000 x 100 3.5%

1 mark 1 mark

(ii) Why do you think television advertising expenditure is greater than direct mail advertising expenditure? can be directed at national audiences – increases sales more effective - as it combines sound and vision can target audience better – eg toys during children’s programmes

3 marks

(b) (i) Discuss which advertising media you would use to advertise dog food. Dog food examples of national media: morning newspapers TV magazines Analysis of choice of media

Dog food Basic statements eg aim: to reach as many dog owners as possible Expanded statements eg press advertising is cheaper than television advertising press adverts can be cut out to provide a more permanent record than TV

5 marks

(ii) Discuss which advertising media you would use to advertise films at a local cinema. Film programmes examples of local media: local newspaper local radio

Film programmes Basic statements eg aim: information for a local audience Expanded statements eg local press advert more permanent and cheaper than radio advertisement

5 marks

(c) ‘Firms buy advertising to benefit only themselves.’ To what extent do

you agree with this statement? Points for: Basic statements eg purpose is to increase sales of goods/services increased sales lead to higher profits

Expanded statements eg advertising attempts to create brand loyalties if successful, repeat sales ensure future income and profits Points against: Basic statements eg advertising provides consumers with information such information assists consumers to plan budgets/expenditure Expanded statements eg part of the increased profits from advertising may be passed on in the form of lower prices lower prices may lead to further increases in sales Conclusion: eg advertiser benefits from higher sales and profits consumers benefit also from information and possibly, lower prices

4 marks 4 marks 2 marks

Total 25 marks

4330/03 – Written Alternative QUESTION 1 My task is to advise Paul about

eg advise on prospects for the business and whether worth giving up job as a driver

1 mark 1 mark

Total 2 marks

QUESTION 2 (a) In which type of trade does

(i) the business take part? retail (ii) Paul’s employer take part? commercial service

1 mark 1 mark

(b) State: (i) Paul’s annual net income from his job £12 480 1 mark for inaccurate annual calculation, but showing correct method (ii) Paul’s largest expense other living expenses

1 mark 1 mark

(c) State: (i) The net profit earned by The General Store in 2005 GTS £11940 (ii) The General Store’s largest expense wages (iii) Why should Paul be concerned about this expense?

eg increased since 2004 - can reduce profit - problem for business largest item to increase – lower profits

1 mark 1 mark 2 marks

Total 8 marks

QUESTION 3 Paul could either remain employed by a large company or take over the running of The General Store. Explain to Paul Smith the advantages and disadvantages, for him, of being • an employee • a sole trader

Being an employee Advantages knows job and comfortable with it no responsibilities to others safe rather than risky easy as experienced Disadvantages no job satisfaction little chance of promotion limited wage

Being self-employed/sole trader Advantages keep all profits own boss - control some flexibility unlimited liability Disadvantages time consuming risky need to learn new skills inexperienced in retailing Candidates who give imbalanced treatment can obtain maximum of 8 marks on either of the alternatives Total 12 marks

12 marks

QUESTION 4 Analyse The General Store’s trading results for 2004 and 2005, using the headings below. Turnover sales during 2005 total £78 300 increased by £2800 ( 3.7%) reference to volume or higher prices as cause of increase Gross profit and turnover In 2005 GP x 100 = £27 100 = 34.6% Sales £78 300 In 2004 = £25 110 = 33.2% £75 500 Profit % increase – reasons – sales increase Owner’s profit Increased by £440 Working capital resources available to the business - £11 925 available for - eg buying new equipment/paying regular expenses current liabilities covered 12X (2005), which is less secure than 16X (2004) Return on owner’s capital net profit x 100 capital In 2005 £11 940 x 100 =20.67%

£57 750 In 2004 £11 500 x 100 = 25.1% £45 810 fall of 4% in 2005 significant increase in capital a possible reason Maximum total of 8 marks Total 8 marks

1 mark 1 mark 1 mark 1 mark 1 mark 1 mark 1 mark 1 mark 1 mark 1 mark 1 mark 1 mark 1 mark

QUESTION 5 Recommend to Paul whether or not he should take over the business. Use information from the sources, your earlier answers and any other ideas you have. Recommendation eg take over the business in anticipation of an improved future standard of living; or - keep existing job actual decision stated Basic statements and evidence and expanded statements up to 3 marks in each case • comparison of Paul’s wages with business profits • business profitable - £27 100 GP - increase so upward trend • sound investment - 20% return on capital earns more than R of I

elsewhere so good use of capital • healthy working capital - covers liabilities 12X - unlikely to have cash

flow problems or need further borrowing • business growing - higher turnover - possible future success • scope for improvement - new developments, eg self-service/new

younger staff - new image • business risks - loyalty to Norman, staffing problems - lower possible

sales/profits in future • general disadvantages of running small business –

inexperience/learning curve - could end up with less income and less leisure time

• advantages of present job - decent income/low risk - safe and secure • advantages of business location – ie customers and use of flat If a candidate gives reasons for both alternatives, the best alternative of the two will be credited

1 mark 9 marks

Total 10 marks

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4340 / 1F - 2H: Written Paper (Foundation and Higher) General Comments This was the first IGCSE Commerce examination. The overall performance of candidates in this examination was encouraging. The overall marks and level of achievement for paper 2H was much higher than paper 1F. The marks for paper 1F were slightly disappointing. Nevertheless, centres appear to be selecting and entering candidates for the appropriate Tier. Candidates coped well with the use of the question paper as answer book. There were not many occasions where candidates used space in addition to the answer lines, in order to complete their answers. Centres are again encouraged to work with their candidates to ensure that (most) answers are limited to these answer lines, the number of lines being a good indicator of the expected length of answer. The standard of written communication was generally good, and sometimes excellent. The majority of candidates did not always answer at the appropriate level of skill. IGCSE examinations measure a far wider range of skills than recall. The Mark Scheme contains much information that is relevant to centres, as follows. Each question indicates the level(s) at which it is based:

• AO 1 Demonstrate - this Assessment Objective tests candidates on their ability to demonstrate their knowledge and understanding of the commercial term, idea or concept featured in the question. For example, Paper 1F Question 2 (b)(i) asks candidates 'List three services provided by coffee manufacturers’. Command words such as 'Define', 'Describe', 'Name', 'List', 'State' and 'What is . . . ?' confirm the question is at this level.

• AO2 Apply - this Assessment Objective tests candidates' ability to relate their

answer to the context. In this Series, candidates were required to use the information given about a bank statement. For example, Paper 1F Question 1 (b) required candidates to show the relevant information/figures from the bank statement provided. Command words such as 'What was' and 'Give [an example in context]' confirm the question is at this level.

• AO3 Analyse - this Assessment Objective requires candidates to select,

interpret or otherwise analyse some issue presented by the question. For example, Paper 2H Question 2 (c)(i) asked candidates to analyse the differences between the two shops. Command words such as 'Analyse', 'Compare' and 'Select' confirm the question is at this level.

• AO4 Evaluate - this most demanding Assessment Objective tests candidates on

their ability to formulate some judgements. For example, Paper 2H Question 2 (c)(ii) expected candidates to suggest why there are differences between the two shops. Command words such as 'Evaluate', 'Explain why', 'Judge' and 'Suggest' confirm the question is at this level.

Possible answers are provided as indicators of what is expected. It remains important for Centres to realise that the answers given in the Mark Scheme are not meant to be exhaustive. This is confirmed by the use of the statement 'Valid points could include', and by the use of the abbreviation 'eg'.

The possible answers are structured using dashes and obliques ('slashes'). It remains the practice in this examination to use a dash in order to separate points that are worth additional marks, and an oblique to indicate an alternative way of making the same point. 4340/1F – Foundation Paper Question 1 Part (a) was generally well answered. Many candidates achieved at least two of the five marks available, and some obtained maximum marks.

Part (b) was also generally satisfactorily answered, although parts (iii) and (iv) on account balances proved to be challenging for many of the candidates. Part (v) on the benefits of using credit transfer was not as well known as expected. Part (c) required candidates to apply their knowledge given on the bank statement. Weaker candidates often could not provide the second mark for part (iii). For example, apart from the cheque not been deposited they could have mentioned the delay in clearing the cheque. The other parts were generally well attempted. Most candidates obtained both marks for (d)(i) and the one mark for (d)(ii). However, the two items required to use the cash dispenser, namely debit card and PIN, caused difficulty. Part (e) was not well answered. Given the importance of the internet in the world of commerce, it was disappointing to see so many vague and general answers that prevented many good scores to this question. Centres are encouraged to study carefully the implications of the internet on the commercial world. Question 2 The part (a) question focussed on the chain of production and asked candidates to identify the missing difficulties and aids to trade from a diagram on the chain of production. Relevant examples were supplied but few candidates could then link any of the correct answers. Parts (ii) and (iii) were better answered. Most candidates were only able to score one out of three marks available for part (iv).

In part (b) candidates should have been able to score at least three marks out of six. However, apart from breaking bulk many of the answers lacked precision or real knowledge of the wholesaling services to manufacturers and retailers. The vast majority of candidates to part (c) gained very few marks for assessing the role of wholesale warehouses in the chain of production. Most candidates knew that warehouses were important for storage but had little knowledge after making that point. In addition, it is important to point out that this was an AO4 evaluation question where to the command word ‘Assess’ the candidates were expected to provide a balanced answer with at least on disadvantage and a conclusion. Part (d) often generated some sound answers, with candidates realising the need to keep some back up stock on their premises so as to obtain stock quickly.

Question 3 – Foundation Tier (4340/1F) / Question 1 – Higher Tier (4340/2H) In part (a) Foundation Tier candidates demonstrated a lack of knowledge on the topic of insurance. For example, very few candidates knew the correct answer of ‘proposal form’ to part (a)(i). Higher Tier candidates performed reasonably well. For example, to part (iii) one candidate wrote to the meaning of utmost good faith as follows: “This means that John must honestly (1 mark) disclose all the information about the grocery store (1 mark). This will enable the insurance company to make an accurate assessment (1 mark)”.

Part (b) produced many good answers from Higher Tier candidates, with Foundation Tier candidates finding it difficult generally to score marks. Most Foundation Tier candidates were only able to score one out of the allocated five marks for the meaning of insurable risks. They could give a valid example but could not then explain the concept. For example, one excellent answer from a Higher Tier candidate considered the need for calculation from past records to enable a suitable premium to be set using theft as an example. There was some knowledge of the principle of insurable interest to part (c)(i) by the stronger Higher Tier candidates. Many Foundation Tier candidates thought incorrectly that the situation required the use of utmost good faith. In part (c)(ii) the compensation needed to was £30 000 because insurance is based on the fact that you cannot make a profit from a loss but must be restored back to the amount that the property was insured for. 4340/2H – Higher Paper For comments on Higher Paper Question 1, see comments on Foundation Paper Question 3 above. Question 2 Part (a) was often well answered, with many candidates scoring four marks from the six marks available. The second answer to Building Society was not well known. Furthermore, it was not sufficient to say ‘limited company’ to the first and fourth questions. It was necessary to state public limited and private limited. The three parts to (b) were not well answered. Centres are strongly advised to spend more attention to business calculations to enable their candidates to be more successful when answering finance questions. In parts (i) and (iii) there was a tendency to confuse gross profit with net profit and vice versa. In part (iii) the formulae for rate of turnover was generally not well known. Part (c)(i) was also weakly answered by many. Only the stronger candidates were able to analyse and comment on each of the financial differences required. Weaker candidates simply said that “A had higher sales than B but B makes more profit” for a total of two marks out of a possible nine marks. In part (c)(ii) the differences on profit margins and expenses were not given by most candidates. Question 3 Candidates were expected to use the skills of analysis and evaluation – in this Paper when answering parts (a)(ii), (c) and (d).

Part (a)(i) and (ii) was generally very well answered. Most candidates knew that consumers buy small quantities of goods from retailers and that wholesalers break bulk when selling goods to retailers.

The topic of mail order had clearly been well taught in centres with many full and detailed descriptions on the operation of a mail order business provided. Part (c) was also targeted at AO3 Analysis and AO4 Evaluation. The stronger answers developed the reasons given with appropriate examples or suitable application of content. For example, in part (c)(i) better candidates wrote that road transport was more flexible as there are no rigid timetables to follow compared to when using rail transport. Again, in part (c)(ii) better candidates stated that since there is a shorter travelling time, insurance costs are lower as there is greater protection in transit. It is important for candidates to realise that they must apply and develop their answers when asked to do so. Question 4 In part (a)(i) if candidates had correctly identified radio as the smallest medium the correct percentage was usually accurately applied. There were some good answers to part (ii) with many candidates realising that television advertising has wider audiences and greater effectiveness than direct mail advertising. In part (b)(i) and (ii) candidates normally chose suitable media to advertise the two products given. However, their discussion of why these media was utilised often lacked the range and development of points needed to score good marks. In part (c) candidates were asked through the command word ‘to what extent’ to evaluate their answers, that is, with points for and against with a conclusion. This question differentiated well. Weaker candidates either concentrated on points for or limited their answers to simple undeveloped points. Stronger answers looked at both sides in a developed way and submitted a conclusion.

4340 / 03 – Written Alternative General Comments This was the first examination in this subject. The overall performance of candidates was inconsistent. The mean mark for paper 3 was 17.8 and there was a range of answers from a disappointing 2 to an excellent 39. Candidates coped well with the commercial case study, which was received six weeks before the examination, and the stimulus material provided in the exam. There was no evidence that 1 hour and 10 minutes was insufficient time for students to complete the assessment tasks. Most candidates answered in the spaces provided and very few needed extra paper. This paper was heavily weighted towards AO3 (selection, organisation and analysis of information) and AO4 (evaluation, reasoned judgement and appropriate conclusions). It is an alternative to coursework component 4 and thus covers similar skills. These higher level skills were tested in Questions 3, 4 and 5. Question 1 This required candidates to demonstrate basic knowledge which could be taken from the scenario, ie whether Paul should give up his job to run the business. However, many candidates made a decision here rather than setting out the alternatives. Question 2 Part (a) was very weakly answered for a ‘knowledge’ question, particularly in part (ii) where hardly any candidate correctly identified ‘commercial service’. In part (b)(i) candidates needed to identify Paul’s income from the scenario and convert it from ‘weekly’ to ‘annual’ amount. A common mistake was to just give weekly income, indicating that candidates did not read the question carefully enough. Part (b)(ii) in this subsection was well answered. In part (c)(i) and (ii) the candidates were required to find the correct information from Source B (Trading and Profit and Loss accounts). This proved difficult for most apart from the strongest candidates, mainly because the question did not give a specific directive to that Source. Part (iii) required some simple evaluations about wages such as its increase, its impact on profits and its potential as a problem for the business. Unfortunately, very few candidates were able to provide worthwhile judgements about the General Stores’ wages.

Question 3 The idea behind this question was for candidates to apply knowledge, theories and concepts (AO2) to the alternatives of being a sole trader or an employee, as well as analysing and interpreting relevant information (AO3) provided in the sources. Most candidates were able to accurately identify and explain at least one advantage and one disadvantage for each of the alternatives. Some wrote extensively and effectively applied the finance information, thereby gaining high marks. Others concentrated on the sole trader aspect and this one-sided answer limited their marks. Question 4 This question also sought AO2 and AO3 skills but in a numerical context. This question proved to be very difficult. Many candidates were capable of making the correct calculations but did not analyse them. Typically, candidates did not compare the statistics and also did not look at the possible reasons for the changes which they had identified. Common errors were to calculate the rate of stock instead of turnover, consider absolute changes rather than percentage changes, and put wrong denominators in the ROCE formula. Question 5 A reasoned judgement and conclusion (AO5) was sought in the final question, with the intention being that candidates would synthesise the evidence. For example, a basic statement that “the business is profitable” could be backed up with evidence of “£27 100 gross profit in 2005”, which then could be expanded into an argument that “this is part of an upward trend and a good reason for Paul to takeover the business”. In contrast, a converse line of argument might have linked the advantages of Paul’s present job compared to the risks of taking over the business. Candidates were asked to make a recommendation and pleasingly nearly all candidates made a decision and could back it with a reason(s). However, there was a tendency to examine general reasons, such as the advantages of self employment, rather than to consider the specific business of Norman’s and its profitability, despite the prompt of question 4. Unfortunately, some candidates thought that a good approach was to copy out sentences from the stimulus material.

4340 Statistics Option 1 : Written Paper 1F with Written Alternative (Paper 03)

A*

A

B

C

D

E

F

G

Foundation Tier 49 42 35 28 21

Option 3 : Written Paper 2H with Written Alternative (Paper 03)

A*

A

B

C

D

E

F

G

Higher Tier 78 68 58 49 39 34

Note: Grade boundaries may vary from year to year and from subject to subject, depending on the demands of the question paper.