Past Paper Mistakes

Question 1

One disadvantage to a small business using an overdraft as a source of business finance?

Answer 1

Loans have to be payed back
So increased fixed costs
So decreased profit

Question 2

One way a business can reduce variable costs?

Answer 2

Cheaper suppliers
Less costs for raw materials
Increased profits

Question 3

How do you structure ‘outline’ questions?

Answer 3

‘Outline’ questions are marked as follows – they require a point – in this case a factor that influences the business location, to score 1 mark. To score 2 marks, there has to be development of the factor and the existence of application somewhere within the response.