Cambridge AS & A Level Business Mark Scheme
Cambridge AS & A Level Business Mark Scheme
BUSINESS 9609/13
Paper 1 Business Concepts 1 May/June 2025
MARK SCHEME
Maximum Mark: 40
Published
This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the
examination. It shows the basis on which Examiners were instructed to award marks. It does not indicate the
details of the discussions that took place at an Examiners’ meeting before marking began, which would have
considered the acceptability of alternative answers.
Mark schemes should be read in conjunction with the question paper and the Principal Examiner Report for
Teachers.
Cambridge International will not enter into discussions about these mark schemes.
Cambridge International is publishing the mark schemes for the May/June 2025 series for most
Cambridge IGCSE, Cambridge International A and AS Level components, and some Cambridge O Level
components.
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These general marking principles must be applied by all examiners when marking candidate answers. They should be applied alongside the
specific content of the mark scheme or generic level descriptions for a question. Each question paper and mark scheme will also comply with these
marking principles.
• the specific content of the mark scheme or the generic level descriptors for the question
• the specific skills defined in the mark scheme or in the generic level descriptors for the question
• the standard of response required by a candidate as exemplified by the standardisation scripts.
Marks awarded are always whole marks (not half marks, or other fractions).
• marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond
the scope of the syllabus and mark scheme, referring to your Team Leader as appropriate
• marks are awarded when candidates clearly demonstrate what they know and can do
• marks are not deducted for errors
• marks are not deducted for omissions
• answers should only be judged on the quality of spelling, punctuation and grammar when these features are specifically assessed by the
question as indicated by the mark scheme. The meaning, however, should be unambiguous.
Rules must be applied consistently, e.g. in situations where candidates have not followed instructions or in the application of generic level
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GENERIC MARKING PRINCIPLE 5:
Marks should be awarded using the full range of marks defined in the mark scheme for the question (however; the use of the full mark range may
be limited according to the quality of the candidate responses seen).
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should not be awarded with grade thresholds or
grade descriptors in mind.
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Social Science-Specific Marking Principles
(for point-based marking)
a DO credit answers which are worded differently from the mark scheme if they clearly convey the same meaning (unless the mark
scheme requires a specific term)
b DO credit alternative answers/examples which are not written in the mark scheme if they are correct
c DO credit answers where candidates give more than one correct answer in one prompt/numbered/scaffolded space where extended
writing is required rather than list-type answers. For example, questions that require n reasons (e.g. State two reasons …).
d DO NOT credit answers simply for using a ‘key term’ unless that is all that is required. (Check for evidence it is understood and not used
wrongly.)
e DO NOT credit answers which are obviously self-contradicting or trying to cover all possibilities
f DO NOT give further credit for what is effectively repetition of a correct point already credited unless the language itself is being tested.
This applies equally to ‘mirror statements’ (i.e. polluted/not polluted).
g DO NOT require spellings to be correct, unless this is part of the test. However spellings of syllabus terms must allow for clear and
unambiguous separation from other syllabus terms with which they may be confused (e.g. Corrasion/Corrosion)
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3 Calculation questions:
• The mark scheme will show the steps in the most likely correct method(s), the mark for each step, the correct answer(s) and the mark
for each answer
• If working/explanation is considered essential for full credit, this will be indicated in the question paper and in the mark scheme. In all
other instances, the correct answer to a calculation should be given full credit, even if no supporting working is shown.
• Where the candidate uses a valid method which is not covered by the mark scheme, award equivalent marks for reaching equivalent
stages.
• Where an answer makes use of a candidate’s own incorrect figure from previous working, the ‘own figure rule’ applies: full marks will be
given if a correct and complete method is used. Further guidance will be included in the mark scheme where necessary and any
exceptions to this general principle will be noted.
4 Annotation:
• For point marking, ticks can be used to indicate correct answers and crosses can be used to indicate wrong answers. There is no direct
relationship between ticks and marks. Ticks have no defined meaning for levels of response marking.
• For levels of response marking, the level awarded should be annotated on the script.
• Other annotations will be used by examiners as agreed during standardisation, and the meaning will be understood by all examiners
who marked that paper.
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Annotations guidance for centres
Examiners use a system of annotations as a shorthand for communicating their marking decisions to one another. Examiners are trained during the
standardisation process on how and when to use annotations. The purpose of annotations is to inform the standardisation and monitoring
processes and guide the supervising examiners when they are checking the work of examiners within their team. The meaning of annotations and
how they are used is specific to each component and is understood by all examiners who mark the component.
We publish annotations in our mark schemes to help centres understand the annotations they may see on copies of scripts. Note that there may
not be a direct correlation between the number of annotations on a script and the mark awarded. Similarly, the use of an annotation may not be an
indication of the quality of the response.
The annotations listed below were available to examiners marking this component in this series.
Annotations
Annotation Meaning
Indicates knowledge and understanding of the concepts and issues relating to the question.
Indicates where the answer has demonstrated analysis – questions 4, 5(a), 5(b), 6(a) and 6(b).
Indicates where the answer has demonstrated evaluation – (Section B Part (b) questions only).
Used when the benefit of the doubt is given in order to reward a response.
Used when the answer or parts of the answer are not answering the question asked.
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Used when parts of the answer are considered to be too vague
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Indicates that content has been recognised but not rewarded.
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Annotation Meaning
Off page Used to view PE comments on practice scripts only – displayed at the bottom of the screen when clicking the comments
comment button/toggle.
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Guidance on using levels-based mark schemes
Marking of work should be positive, rewarding achievement where possible, but clearly differentiating across the whole range of marks, where
appropriate.
The examiner should look at the work and then make a judgement about which level statement is the best fit. In practice, work does not always
match one level statement precisely so a judgement may need to be made between two or more level statements.
Once a best-fit level statement has been identified, use the following guidance to decide on a specific mark:
• If the candidate’s work convincingly meets the level statement, award the highest mark.
• If the candidate’s work adequately meets the level statement, award the most appropriate mark in the middle of the range.
• If the candidate’s work just meets the level statement, award the lowest mark.
• L1, L2 etc. must be clearly annotated on the response at the point where the level is achieved.
Assessment objectives
AO2 Application
Apply knowledge and understanding of business concepts, terms and theories to problems and issues in a variety of familiar and unfamiliar
business situations and contexts.
AO3 Analysis
Analyse business problems, issues and situations by:
• using appropriate methods and techniques to make sense of qualitative and quantitative business information
• searching for causes, impact and consequences
• distinguishing between factual evidence and opinion or value judgement
• drawing valid inferences and making valid generalisations.
AO4 Evaluation
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Evaluate evidence in order to make reasoned judgements, present substantiated conclusions and, where appropriate, make recommendations for
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Mark Grids for Section A
Two marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these marks.
Knowledge of the term that demonstrates a clear understanding of the 2 Indicated by 2 where appropriate in the
term. answer
Knowledge of the term that demonstrates a partial understanding of 1 Indicated by 1 where appropriate in the
the term. answer
No creditable response. 0
Three marks in total can be awarded for these questions. Ticks ( ) are used to show where the candidate has been given these marks.
2 marks
Developed application of one relevant point to a business
context.
Indicated by a further where appropriate in the answer
1 mark 1 mark
Knowledge of one relevant point is used to answer the Limited application of one relevant point to a business
question. context.
Indicated by 1 where appropriate in the answer Indicated by 1 where appropriate in the answer
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0 marks 0 marks
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No creditable response. No creditable response.
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Question Answer Marks
Indicative content
Clear understanding
A clear definition that merits 2 marks should include reference to two out of the following three 1-mark responses
(an acceptable definition will NOT use the word ‘motivate’ )
• The factors-such as stimulate, encourage, interest, leading to the desire of employees (1) providing a willingness to
work, to work harder, to perform well, to achieve something, a goal/task or objective, become more efficient, more
satisfied (1) with incentives such as money, promotion, job enrichment/rotation (1)
Partial understanding
• Why employees work hard (1)
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Question Answer Marks
1 mark for
2 marks for
Indicative content
• Lower absenteeism
• Better workplace culture
• Employees work harder
• Lower labour turnover
• Employees more productive
• Business objectives more likely to be achieved
• Better customer service
• Greater creativity/innovation ( motivated employees more likely to challenge, explore more creative options and
collaborate with colleagues )
• Improved work relationships- more likely to accept change and less likely to take industrial action
• Positive business reputation- motivated employees more likely to speak highly of the business
• Higher sales- more profit
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Question Answer Marks
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Question Answer Marks
Indicative content
Clear understanding
• Incremental budgeting is a budgeting process that involves developing a budget by making adjustments/changes to an
existing or previous budget (2)
Partial understanding
• Setting this year`s budget based on last year`s budget (1)
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Question Answer Marks
1 mark for
2 marks for
Indicative content
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Question Answer Marks
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Question Answer Marks
Indicative content
Clear understanding
NOTE: A clear definition that merits two marks should include reference to two out of the following three 1 mark responses:
• The management of inventory (1) that ensures that new inventory arrives just when needed (1) removes the need for
inventory to be held in storage until it is needed (1)
Partial understanding
• Where inventory is kept low (1)
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Question Answer Marks
1 mark for
2 marks for
Indicative content
• Production process can be delayed when supplies do not arrive or are late
• Frequent small deliveries needed
• More planning ahead with suppliers required
• Small orders need to be processed
• Suppliers need to be reliable
• Could be expensive
• No discounts for bulk orders- no economies of scale
• Unable to respond to unexpected customer demand
• Can lead to stockouts
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Question Answer Marks
• Any failure to receive supplies or components on time – could lead to production delays.
• Frequent small deliveries – could lead to an increase in delivery costs.
• Small orders need to be processed – administration costs may rise.
• Each order is likely to be small – lose out on bulk discounts.
• Suppliers need to be reliable – if not could affect reputation
• Could be expensive to implement for small firms – increase costs
• May require investment in new technology
• Could lose sales/ revenue/profit
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Question Answer Marks
1 mark for
2 marks for
2 marks for
Indicative content
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Question Answer Marks
4 AO2 Application
AO3 Analysis
• Economies of scale can enable substantially lower average costs of production – increase profit margin.
• The ability to target the whole market could lead to huge sales – and profits.
• Brand awareness could become global – could lead to becoming market leader.
• Time saved on marketing campaigns could be used in other ways to increase business efficiency.
• Less prone to changing tastes – so a change in consumer buying habits may not impact sales.
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Question Answer Marks
1 mark for
1 mark for
2 marks for
Indicative content
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Question Answer Marks
• The use of break-even analysis in a business -indicates production volume required to cover costs/make profits
• Allows informed decisions to be made on: Pricing
• Cost management
• Production levels
• Overall business strategy
• Relatively easy to calculate and understand – great for quick estimates.
• Used to assist managers in decision making – location, equipment, projects.
• The break-even analysis can be used in business plans to support loan applications
• Really useful when launching new products or entering new markets
AO3 Analysis
• Break-even analysis can give a business an idea of whether the product is likely to be successful by analysing the
costs involved and likely revenues.
• The level of output for a desired level of profit can be determined
• A break-even chart indicates the margin of safety. If the margin of safety is too low the business might reconsider its
product(s)
• Break even analysis can be used to assist managers when making important decisions such as location decisions,
whether to buy new equipment, or invest in a project – so reduces the risk to the business.
• A business might see that if a certain level of profit is to be achieved, costs might have to be reduced to make it
possible
• A change in price might also be indicated. If the desired profit is not achieved, then the price of the product might have
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Accept all valid responses.
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The AN marks are recorded in the 5(a) AO3 box
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Question Answer Marks
5(b) Evaluate whether cash flow forecasting is the most important activity for the success of a fashion clothing 12
manufacturer
2 marks for
2 marks for
2 marks for
6 marks for
Indicative content
• Cash flow forecasting-the process of obtaining an estimate/forecast of a business’s future cash position – anticipated
payments and receivables in a given period of time
• Clothing manufacturers convert raw materials into finished garments
• Success may be measured in terms of quality of clothing, customer satisfaction, level of clothes purchased, reputation
established, health of financial position, level of profit, amount of time in business.
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Question Answer Marks
• Success of a fashion clothing manufacturer very much concerned with following/creating the latest trends,
fashions/fads in clothing, keeping pace with the latest fashion house changes in a range of different clothing items.
• Fashion clothing manufacturers produce a variety of clothes such as trousers, skirts, dresses, jumpers, T-shirts. casual
wear, evening wear, summer ware etc
• Use different materials-cotton, wool, leather
• Creativity/innovation in clothing design work
AO3 Analysis
• A CFF can provide an early warning system for a business – future shortfalls in cash balances – allows a business to
take informed business decisions, such as overdraft provision or short-term loan
• If a business runs out of cash, it may face insolvency. A CFF can indicate the correct time to take action.
• CFF enables a business to track expected cash movements over a period of time in the future – provides a degree of
certainty in possible turbulent times – allows well planned decisions to be made
• CFF is a strategic tool for a new business – gives information for development of plans for survival and growth
• A cash flow forecast may be useful for external stakeholders – such as banks, may want to look at CFF at regular
intervals in order to support a business plan.
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Question Answer Marks
A judgement/conclusion is made as to the importance of cash flow forecasting for the success of a new restaurant. Such
judgements/conclusions may be made at any point in the essay, not only in a concluding section.
• A judgement is made as to whether activities other than CFF could/should be considered as important or more
important in affecting a new clothing manufacturer’s ability to succeed.
• A judgement is made as to what is meant by success and when to take the measure
• Alternative measures of success are judged to be – perception of the quality of the clothes – brand image – desirability
of clothes – strength/weakness of the economy – ability to react to changes in trends – retailer/supplier relationships
• A judgement is made regarding the significance of cash control and CFF for a new clothing manufacturer in relation to
other factors.
• Is CFF as important as market research or monitoring trends and fashions in clothing?
NOTE: The marks for 5(b) are recorded in the mark input column on the right-hand side of the screen.
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AN marks are entered in the 5b AO3 box
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EVAL marks are entered in the 5b AO4 box
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Question Answer Marks
1 mark for
1 mark for
2 marks for
Indicative content
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• Government support
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• Higher sales
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• Attracts employees
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• Reduce costs
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• Reduce conflict between employees
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Question Answer Marks
1 mark for of the chosen way. Repeat this for the chosen advantage
AO3 Analysis
• Can lead to good publicity and brand image/usp – customers may become loyal
• Attract ethical customers – a potentially increasing customer base in today’s market
• Ethical businesses are more likely to be awarded government contracts – increase revenue
• Well qualified staff may be attracted to work for businesses who are the most ethical – competitive advantage.
• Fosters a culture of fairness and respect within the business – help reduce labour turnover and increase efficiency.
• Improves the public image of the business – people want to work there, customers want to purchase goods, investment
• Improves the bottom line of the business – loyal customers – increased profits
• Appeals to shareholders as there is a growing number of ethical investors – greater investment
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Question Answer Marks
6(b) ‘Employees are the most important stakeholder group in a primary sector oil and gas business.’ 12
2 marks for
2 marks for
2 marks for
6 marks for
Indicative content
• Stakeholders are persons who have an interest in/are affected by a business, such as owners, shareholders,
customers, suppliers, employees, local communities, government, special interest groups
• Primary sector oil and gas businesses exist in the energy sector and often span many countries with huge revenues
and profits.
• They engage in the exploration and extraction of oil and gas.
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Question Answer Marks
• Employees are important as they provide skilled labour and without them the business would not be able to operate
and make profits.
• Employees ensure new sites are found, oil and gas is extracted efficiently and safely.
• Primary sector oil and gas industries can be dangerous and risky- health and safety policies needed to protect
employees
• Oil and gas sector produce energy services to power vehicles, heat homes and manufacture steel
• Sold to petrol/gas stations
AO3 Analysis
• If the workforce is unhappy about a change in work practices though it might reduce costs in the short run, it may be
detrimental if a demotivated workforce affects the quality of production.
• If there is strong trade union membership then strike action may occur if demands are not met – this would affect
image, stop production, delay deliveries.
• Good relationships with employees would improve morale and motivate – lead to improved productivity and lower staff
turnover
• Skilled employees ensure that the business is able to locate and extract the raw materials (oil) thus ensuring sales
revenue and profits.
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Question Answer Marks
A judgement/conclusion is made as to the view that the main reason for new business failure is the pursuit of growth too
quickly. Such judgements/conclusions may be made at any point in the essay, not just in a concluding section.
• A judgement is made that there are a number of factors that impact on the importance of employees as stakeholders
such as how strong trade unions are, how skilled they are and how easy it is to find new employees.
• If employees are easy to recruit i.e. unemployment is high, then employee’s importance might not be too significant.
• Business might place more importance on keeping shareholders happy with dividends.
• A judgement is made that most businesses need to balance the needs of all stakeholders for a successful business
especially a business as large and complex as those in the oil and gas primary sector.
• A judgement is made that in the modern era local communities are more willing to protest if their local community will
potentially be polluted and the resulting negative impact in the news. This however may depend on which country the
business is operating in.
• A judgement is made that pressure groups are becoming more visible and any business would be foolish not to take
them seriously as the impact on brand image and the ability to operate can be significant especially in light of global
warming.
• A judgement is made to that very often compromises need to be made in business with negotiations occurring with all
stakeholder groups.
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• How important are other stakeholders such as shareholders, local communities, suppliers, governments?
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Accept all valid responses.
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Mark Grids for Section B
2 3–4 marks
Developed analysis
• Developed analysis that identifies connections
between causes, impacts and/or
consequences of two points.
• Developed analysis that identifies connections
between causes, impacts and/or
consequences of one point.
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Mark Grids for Section B
Level AO1 Knowledge and AO2 Application AO3 Analysis AO4 Evaluation
understanding 2 marks 2 marks 6 marks
2 marks
3 5–6 marks
Developed evaluation in context
• A developed judgement/conclusion is
made in the business context.
• Developed evaluative comments which
balance some key arguments in the
business context.
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