BTEC Business Enterprise and Entrepreneurship 31463 H Add SAM Jan 2021 MS PDF

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Unit 3: Personal and Business Finance – Sample marking grid (AddSAM) General marking guidance •

All learners must receive the same treatment. Examiners must mark the first learner in exactly the same way as they mark the last.

•

Marking grids should be applied positively. Learners must be rewarded for what they have shown they can do, rather than be penalised for omissions.

•

Examiners should mark according to the marking grid, not according to their perception of where the grade boundaries may lie.

•

All marks on the marking grid should be used appropriately.

•

All the marks on the marking grid are designed to be awarded. Examiners should always award full marks if deserved. Examiners should also be prepared to award zero marks, if the learner’s response is not rewardable according to the marking grid.

•

Where some judgement is required, a marking grid will provide the principles by which marks will be awarded.

•

When examiners are in doubt regarding the application of the marking grid to a learner’s response, a senior examiner should be consulted. •

Crossed-out work should be marked UNLESS the learner has replaced it with an alternative response.

•

Specific marking guidance

The marking grids have been designed to assess learner work holistically. Rows in the grids identify the assessment focus/outcome being targeted. When using a marking grid, the ‘best fit’ approach should be used. ●

Examiners should first make a holistic judgement on which band most closely matches the learner’s response and place it within that band. Learners will be placed in the band that best describes their answer.

●

The mark awarded within the band will be decided based on the quality of the answer, in response to the assessment focus/outcome and will be modified according to how securely all bullet points are displayed at that band.

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Marks will be awarded towards the top or bottom of that band, depending on how they have evidenced each of the descriptor bullet points.

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Additional SAMS All the material in this publication is copyright © Pearson Education Ltd 2020

BTEC Nationals Mark Scheme - Business Finance Unit 3 AdSAM Question Number

Answer

Mark

1

Award one mark for any of the following up to a maximum of two marks:

2

• • •

Provides a compensation service for customers up to a given level (1) Raises public confidence in the financial services industry (1) Does not charge individual customers (1)

Accept any other appropriate response. Question number

Answer

Mark

2

Award one mark for any of the following up to a maximum of two marks:

2

• • • • • • • •

benefits (1) tax (1) debt (1) budgeting (1) borrowing (1) pensions (1) banking issues (1) consumer credit (1)

Accept any other appropriate response. Question Number

Answer

Mark

3

Award one mark for each identification of a reason up to maximum of two marks:

2

• • •

Some religious beliefs can only borrow money without repaying interest (1) Some religious beliefs do not allow any form of borrowing (1) Borrowing outside of their religious group is not permitted (1)

Accept any other appropriate response.

Question Number

Answer

Mark

4

Award one mark for the identification of a benefit and one additional mark for the appropriate development, to a maximum of two marks for each benefit and four marks in total.

4

•

24-hour access (1) / monitor accounts in real time (1) so you can control spending more effectively (1)

•

Can move money between accounts more quickly (1) so you can increase interest earned (1) / reduce bank charges (1)

•

Access account remotely (1) so you can conduct business faster (1)

Accept any other appropriate response.

Question Number 5

Answer

Mark

Answers will be credited according to the learner’s 6 demonstration of knowledge and understanding of the material, using the indicative content and levels descriptors below. The indicative content that follows is not prescriptive. Answers may cover some or all of the indicative content but learners should be rewarded for other relevant answers. Indicative content includes: Middle aged

• • • • • •

May be more likely to have savings for emergency needs Higher disposable income may lead to saving May downsize to reduce expenditure / create savings More likely to have dependants so higher outgoings may restrict amount saved Desire to protect inheritance for dependants More likely to consider / already have pension that they contribute to

Adolescents

• • • • • •

Less likely to be interested in saving Limited income so likely to spend what they receive Some may save small amounts towards things that they desire (e.g. new phone / games console) Less likely to have dependants Likely to rely on parents Less likely to have much essential spending

Mark scheme (award up to 6 marks) refer to the guidance on the cover of this document for how to apply levels-based mark schemes*. Level

Mark

Descriptor

Level 0

0

No rewardable material.

Level 1

1–2

• Demonstrates isolated knowledge and understanding of relevant information; there may be major gaps or omissions. • Provides little evidence of weighing up of competing arguments/pros and cons in context; discussion likely to consist of basic description of information. • Meaning may be conveyed but in a non-specialist way; response lacks clarity and fails to provide an adequate answer to the question.

Level 2

3–4

Level 3

5–6

• Demonstrates accurate knowledge and understanding of relevant information; there may be some gaps or omissions. • Discussion is partially developed but may be imbalanced. Evidences the consideration of competing arguments/ advantages and disadvantages within some context. • Demonstrates the use of logical reasoning, clarity, and appropriate specialist technical language.

• Demonstrates accurate and thorough knowledge and understanding of relevant information; any gaps or omissions are minor. • Displays a well-developed and balanced discussion, demonstrating a thorough grasp of competing arguments/ advantages and disadvantages in context. • Logical reasoning evidenced throughout response which is clear and uses specialist technical language consistently.

6

Answers will be credited according to the learner’s demonstration of knowledge and understanding of the material, using the indicative content and levels descriptors below. The indicative content that follows is not prescriptive. Answers may cover some or all of the indicative content but learners should be rewarded for other relevant answers.

Indicative content could include: Ashridge • No cancer cover • No additional benefits • Largest excess • Cheapest

Shirevale • No cancer cover • Provides fast track GP appointment • Second largest excess • Second most expensive

The Royal Insurance • Covers cancer • Provides online GP support service, which may speed up any process that could save time off work • Second smallest excess • Second most expensive

Westshire • Covers cancer • Provides online GP support service, which may speed up any process that could save time off work • No excess • Most expensive

12

Mark scheme (award up to 12 marks) refer to the guidance on the cover of this document for how to apply levels-based mark schemes*. Level Level 0 Level 1

Mark 0 1–3

Level 2

4–6

Level 3

7–9

Level 4

10–12

Descriptor No rewardable material. • Demonstrates isolated knowledge and understanding of relevant information; there may be major gaps or omissions. • Provides little evidence of application and links between relevant information. Evaluation likely to consist of basic description of information. • Conclusions may be presented, but are likely to be generic assertions rather than supported by evidence. • Meaning may be conveyed but in a non-specialist way; response lacks clarity. • Demonstrates accurate knowledge and understanding of relevant information with a few omissions. • Evidence of application demonstrating some linkages and interrelationships between factors leading to a judgement/judgements being made. • Evaluation is presented leading to conclusions but some may be lacking support. • Demonstrates the use of logical reasoning, clarity, and appropriate specialist technical language. • Demonstrates accurate knowledge and understanding of relevant information with a few minor omissions. • Evidence of application demonstrating linkages and interrelationships between factors leading to a supported judgement/judgements being made. • Displays a balanced evaluation demonstrating an awareness of competing arguments, leading to conclusions. • Demonstrates the use of logical reasoning, clarity, and appropriate specialist technical language. • Demonstrates accurate and thorough knowledge and understanding of relevant information; any gaps or omissions are minor. • Evidences thorough application leading to balanced evaluation drawing on linkages and interrelationships between factors. • Displays a well-developed, balanced and coherent evaluation, demonstrating a thorough grasp of competing arguments, leading to supported conclusions. • Logical reasoning evidenced throughout response which is clear and uses specialist technical language consistently and fluently.

Question Number 7

Answer

Mark

Award one mark for any of the following up to a maximum of two marks:

2

•

•

Straight line (1) Reducing balance (1)

Question Number

Answer

Mark

8

Award one mark for any of the following up to a maximum of two marks:

2

• •

•

Retained profit / earnings (1) Sale of assets (1) Owner’s personal funds / assets (1)

Accept any other appropriate responses.

Question Number 9

Answer Award one mark for the identification of a benefit and one additional mark for the appropriate development, to a maximum of two marks.

• •

You can plan expenditure (1) to ensure you do not overspend / can schedule payments to suppliers (1) You can monitor your revenue (1) to inform decision making on expenditure (1)

Accept any other appropriate responses.

Mark 2

Question Number

Answer

Mark

10a

Revised gross profit = £82 124 (4)

4

OR Award two marks for correct calculation of the revised cost of sales

Revised cost of sales = £60 250 (1) – £7 230 = £53 020 (1) Revised cost of sales = £60 250 (1) x 0.88 = £53 020 (1) OR Award one mark for calculation of original cost of sales

(Sales – gross profit = cost of sales) or £135 144 - £74 894 = £60 250 (1)

AND Award one mark for formula in numbers

Revised gross profit = (Sales) £135 144 – (Revised cost of sales) £53 020 (1) = 82 124 (ECF)

ECF maximum 3 marks

Question Number

Answer

Mark

10b

Award four marks for the correct answer of £5 445

4

OR Award one mark for correct calculation of current assets Current assets = £14 520 + £8 011 + 1 064 = £23 595 AND Award one mark for correct calculation of current liabilities Current liabilities = £ 8 644 + £10 900 + £446 (1) - £1 840 = £18 150 (1) AND Award one mark for deducting current liabilities (ECF) from current assets (must be labelled clearly) Net current assets/liabilities = £23 595 (ECF) – £18 150 (ECF) OR Award one mark for correct formula in words Net current assets/liabilities = current assets – current liabilities ECF maximum 3 marks

Question Number 10 (c)

Answer Answers will be credited according to the learner’s demonstration of knowledge and understanding of the material, using the indicative content and levels descriptors below. The indicative content that follows is not prescriptive. Answers may cover some or all of the indicative content but learners should be rewarded for other relevant answers.

Indicative content Profitability • • •

•

•

•

Profitability is improving – gross profit, profit and mark-up all increasing Profit margin, has more than doubled Business has growing control of costs as the gap between the gross profit margin and profit margin has shrunk from 49% to 45%, so it is spending proportionally less on expenses Increase in mark-up and margin suggests business is reducing cost of purchases of its goods or has increased selling price to make a larger contribution per unit Return on capital employed is falling, which suggests Waterz is making a lower return. However, this could be because most of the profit earned is left in the business to allow growth The ROCE is still higher than a savings account/ISA

Liquidity • •

• •

• •

Current ratio is reduced slightly but business can still meet current liabilities Liquid capital ratio has fallen significantly, which could cause problems with meeting its short-term obligations as it may have cash flow problems The company is holding high levels of stock based on the difference between the current and liquid ratios Inventory turnover has declined substantially, which suggests the business is holding too much stock. This could cause increased storage costs, potential wastage and further impact on liquidity Liquidity problems may be short term and could be addressed if the company is profitable Both current ratio and liquid capital ratio could also show improving efficiency

Mark 8

Mark scheme (award up to 8 marks) refer to the guidance on the cover of this document for how to apply levels-based mark schemes*. Level Level 0 Level 1

Mark 0 1–3

Level 2

4–6

Level 3

7–8

Descriptor No rewardable material. • Demonstrates isolated knowledge and understanding of relevant information; there may be major gaps or omissions. • Provides little evidence of application and links between relevant information. Analysis likely to consist of basic description of information. • Meaning may be conveyed but in a non-specialist way; response lacks clarity and fails to provide an adequate answer to the question. • Demonstrates accurate knowledge and understanding of relevant information with a few omissions. • Evidence of application demonstrating some linkages and interrelationships between factors leading to an analysis being presented. • Demonstrates the use of logical reasoning, clarity, and appropriate specialist technical language. • Demonstrates accurate and thorough knowledge and understanding of relevant information; any gaps or omissions are minor. • Evidences thorough application leading to a balanced analysis containing linkages and interrelationships between factors. • Logical reasoning evidenced throughout response which is clear and uses specialist technical language consistently.

Question Answer Number 10d

Mark 3

47 250 (3)

OR Award one mark for the formula in words Fixed costs (contribution per unit)

= break-even

Fixed costs (selling price per unit – variable cost per unit)

= break-even

OR Award two marks for formula in numbers 42525 0.9 OR

Award one mark for calculation of contribution per unit (£1.2-£0.3) = £0.9 ECF maximum 2 marks

Question Answer Number Answers will be credited according to the learner’s demonstration of 10 (e) knowledge and understanding of the material, using the indicative content and levels descriptors below. The indicative content that follows is not prescriptive. Answers may cover some or all of the indicative content but learners should be rewarded for other relevant answers.

Indicative content:

Advantages • • • • • • • •

Simple to understand and visualise , especially for small/new businesses where owners lack more sophisticated techniques Allows for the estimation of future levels of profit at different levels of output Allows for the assessment of planned price changes Allows for the assessment of changes to fixed and variable costs Allows for ‘what if’ scenarios so you can physically see the impact of changes Enables decisions about likely levels of production Allows for target setting of output/prices/profit Can be used to support applications for finance

Dis advantages • Break-even analysis only applies to one product and Waterz may sell multiple products so would need multiple charts, which is not realistic • Bulk buying could mean that the selling price and/or purchase price is not linear • Fixed costs may change so the costs may not stay the same • External factors could impact on the figures • It is only a prediction • Assumes all products made/bought can be sold

Mark 6

Mark scheme (award up to 6 marks) refer to the guidance on the cover of this document for how to apply levels-based mark schemes*. Level

Mark

Descriptor

Level 0

0

No rewardable material.

Level 1

1–2

• Demonstrates isolated knowledge and understanding of relevant information; there may be major gaps or omissions. • Discussion likely to consist of basic description of information and is likely to be imbalanced. • Provides no evidence of consideration of competing arguments/advantages and disadvantages. • Meaning may be conveyed but in a non-specialist way; response lacks clarity.

Level 2

3–4

• Demonstrates accurate knowledge and understanding of relevant information; there may be some gaps or omissions. • Discussion is partially developed, but may be imbalanced. • Evidences the consideration of competing arguments/ advantages and disadvantages within some context. • Demonstrates the use of logical reasoning, clarity, and appropriate specialist technical language.

Level 3

5–6

• Demonstrates accurate and thorough knowledge and understanding of relevant information; any gaps or omissions are minor. • Displays a well-developed and balanced discussion, demonstrating a thorough grasp of competing arguments/ advantages and disadvantages in context. • Logical reasoning evidenced throughout response which is clear and uses specialist technical language consistently.

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