8824 – 5005M

Markscheme

November 2024

Business management

Higher level

Paper 2

19 pages
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 –3– 8824 – 5005M

The markbands on page 3 should be used where indicated in the markscheme.

Marks Level descriptor

0 The work does not reach a standard described by the descriptor.
1–2 • Little understanding of the demands of the question.
• Little use of business management tools and theories; any tools and theories
that are used are irrelevant or used inaccurately.
• Little or no reference to the stimulus material.
• No arguments are made.
3–4 • Some understanding of the demands of the question.
• Some use of business management tools and theories, but these are mostly
lacking in accuracy and relevance.
• Superficial use of information from the stimulus material, often not going
beyond the name of the person(s) or name of the organization.
• Any arguments made are mostly unsubstantiated.
5–6 • The response indicates an understanding of the demands of the question, but
these demands are only partially addressed.
• Some relevant and accurate use of business management tools and theories.
• Some relevant use of information from the stimulus material that goes beyond
the name of the person(s) or name of the organization but does not effectively
support the argument.
• Arguments are substantiated but are mostly one-sided.
7–8 • Mostly addresses the demands of the question.
• Mostly relevant and accurate use of business management tools and
theories.
• Information from the stimulus material is generally used to support the
argument, although there is some lack of clarity or relevance in some places.
• Arguments are substantiated and have some balance.
9–10 • Clear focus on addressing the demands of the question.
• Relevant and accurate use of business management tools and theories.
• Relevant information from the stimulus material is integrated effectively to
support the argument.
• Arguments are substantiated and balanced, with an explanation of the
limitations of the case study or stimulus material.
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Section A
1. (a) State two features of a publicly held company. [2]

• the shareholders have limited liability;

• shares can be bought and sold on the stock exchange;
• a board of directors is elected by the shareholders to run the company;
• financial documents must be published and are transparent;
• is a legal entity that has separate identity from its shareholders/members (incorporated);
• in the private sector owned by private individuals.

Accept any other relevant feature of a publicly held company.

N.B. no description required.

Award [1] for each feature stated, up to a maximum of [2].

Do not reward features that are essentially the same e.g. limited liability is the same as separate
legal entity or incorporated.

(b) Using information from Table 1, as at 31 December 2023:

(i) calculate FCT’s current ratio (show all your working); [2]

Current ratio = current assets / current liabilities

Current assets = cash + debtors + stock

$200 + $150 + $150 = $500

Current liabilities = bank overdraft + trade creditors

$100 + 100 = $200

500/200 = 2.5 The current ratio is 2.50

Award [1] for correct working and [1] for the correct answer, up to a maximum of [2].

Accept the current ratio is 2.5:1

Do not accept the addition of an incorrect unit such as $2.50

(ii) calculate FCT’s working capital (show all your working). [2]

Working capital = current assets - current liabilities. Therefore, working capital equals
$500 − $200 = $300

Award [1] for correct working and [1] for the correct answer, up to a maximum of [2].

Allow candidate own figure rule (OFR).

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(c) Using the units of production method, calculate the expected depreciation expense of the
new machine for year 1 (show all your working). [2]

Depreciation per unit = purchase cost / expected number of units over lifetime

Depreciation per unit = $2 000 000 / 80 000 computers = $25 per computer

Depreciation expense = depreciation per unit  number of units produced (expected output)

Depreciation expense = $25  12 000 computers = $300 000

Award [1] for the correct answer, and [1] for correct working up to a maximum of [2].

Award [1] for correct calculation of the depreciation per unit with working.

(d) Explain the impact of purchasing the new machine on FCT’s statement of financial position
(balance sheet). [2]

• Non-current assets will increase significantly by $2 million;

• non-current liabilities or share capital, or a combination thereof will increase by the
same amount.

Accept any other relevant impact. For example:

• depreciation will be accounted for in the statement of profit or loss as an expense and
will subsequently reduce retained earnings in the statement of financial position
(balance sheet);
• the depreciation figure will be added to the accumulated depreciation figure, reducing
the non-current asset value.

Award [1] for identification of an effect (or demonstration of some understanding).

The candidate has to correctly identify an impact on the statement of financial position
(balance sheet).

Award an additional [1] if there is a further explanation of how the statement of financial position
can still balance.
Accept a single impact on just one account such as non-current asset will increase for [1].
 –6– 8824 – 5005M

2. (a) State two features of a sole trader. [2]

As a sole trader, an individual

• has full control/decision making leading to faster decision making;
• sole ownership of the business;
• it is not a separate legal entity and/or has unlimited liability (and /or unincorporated)
(assumes full legal responsibility for all business debts);
• has minimal admin and filing requirements;
• enjoys a greater level of privacy.

Accept any other relevant feature.

N.B. no description required. Award [1] for each relevant feature stated, up to a
maximum of [2].

Do not reward features that are essentially the same eg. unlimited liability is the same
as no separate legal identity or unincorporated.

(b) Using the information in Table 2 and Table 3, complete the following cash-flow forecast,
all figures in $, for Daniel’s new garden design business for the first four months of
operation in 2025. [4]

Cash-flow forecast for Daniel Moon new garden design business for the first four
months of 2025

January February March April

Opening balance 5000 400 1775 2375
Cash inflows:
Cash sales revenue 2000 2100 2000 2500
Total cash inflows 2000 2100 2000 2500
Cash outflows:
Tools and equipment 4000
Loan 200 200 200 200
Daniel's salary 800 800
Van purchase 2000
Expenses 400 400 400 400
Advertising 125 125
Total cash outflows 6600 725 1400 1525

Net cash flow (4600) 1375 600 975

Closing balance 400 1775 2375 3350

Award [1] if the candidate shows some understanding of a cashflow and has some of
the cashflow completed correctly.

Award [2] if the candidate completes the cashflow but has two errors.
 –7– 8824 – 5005M

Award [3] if the candidate completes the cashflow but has one error.

Award [4] if the candidate completes the cashflow correctly.

N.B. Allow candidate own figure rule (OFR): if a candidate makes an error and then
carries it through, that is only one error. Opening balance is 5000 do not accept if
included in January cash inflow.

One or more labels missing for inflows/outflows is one error.

(c) Using Figure 1:

(i) determine the critical path and write the activities of the critical path in the boxes
below; [1]

Award [1] for determining the critical path by writing the activities in the boxes correctly.

(ii) calculate the minimum amount of time required for Daniel to finish a garden design
project (no working required). [1]

Minimum amount of time = 5 days + 8 days + 10 days = 23 days

Award [1] for the correct answer no working required. Do not penalize if “days” missing.

N.B. do not apply OFR if incorrect days used in (c)(i) since number of days is NOT
actually required in (c)(i).
 –8– 8824 – 5005M

(d) Explain one advantage for Daniel of using critical path analysis for a garden design
project. [2]

Award [1] for any of the following:

• CPA will allow Daniel to budget time, allocate resources, and prioritize for the 3
tasks that are part of the project [1].
• clear identification of critical tasks (prepare the garden grounds) [1]
• accurate determination of project length (5 days + 8 days + 10 days = 23 days)
[1]
• precise scheduling (5 days designing the garden; 8 days preparing the garden
grounds; 10 days working on the garden) [1]
• only by finding ways to shorten jobs along the critical path (for example, 8 days of
the ground preparations) can the overall project time be reduced [1].

Accept any other relevant advantage and explanation.

Award [1] for each advantage stated and an additional [1] for application to the stimulus
and explanation.

N.B. do not allow the use of “garden design project” as an example of application as this
simply repeats the wording in the question.
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3. (a) State one advantage and one disadvantage of operating as a privately held company. [2]

Advantages of operating as a privately held company include:

• typically, better access to finance, at least compared to a sole trader;
• legal continuity;
• though laws vary from country to country, in general privately held companies are allowed
to keep most or all of their financial information confidential
• incorporated, therefore a separate legal entity whose owners have limited liability;

Disadvantages of operating as a privately held company include:

• typically, lesser access to finance, at least compared to a publicly held company;
• restricted number of shareholders, at least compared to a publicly company;
• higher costs/legal requirements than unincorporated entities

Accept any other relevant advantage/disadvantage.

N.B. no description required.

Award [1] for stating an advantage of operating as a privately held company.

Award [1] for stating a disadvantage of operating as a privately held company.

Award a maximum of [2].

N.B. do not accept “owned by shareholders” as it is a feature and not an advantage or

disadvantage.

(b) Using Table 4, calculate the expected outcome, X, for Option 2 (show all your working). [2]

0.3  $4 000 000 = $1 200 000

0.4  $3 375 000 = $1 350 000
0.3  ($1 000 000) = $ (300 000)

Expected outcome for option 2: $1 200 000 + $1 350 000 − $300 000 = $2 250 000.

Award [1] for the correct working and [1] for the correct answer.

N.B. do not penalize for missing $ or millions as these are already given in the table.
 – 10 – 8824 – 5005M

(c) Assuming that ME’s annual profits are the same each year:

(i) calculate the average rate of return (ARR) for Option 1 (show all your working); [2]

ARR = (total returns − capital costs) / years of use)  100

capital costs

ARR = [($1 650 000 − $1 000 000)/3]  100 =

$1 000 000

ARR = ($650 000/3)  100 =

$1 000 000

ARR = $216 666.67/$1 000 000  100 =

ARR = 0.20  100 = 21.67%

The average rate of return for Option 1 is 21.67 % / 21.7%.

Award [1] for following the correct method and [1] for producing the correct answer, which
must be expressed as a percentage.

If a candidate gives the answer as 0.2167 or as 0.2167%, their answer is incorrect, and
they could only receive a maximum of [1] if they provide the correct working. A correct
answer must include the percentage sign %.

Allow for rounding, provided the candidate rounds in a mathematically correct fashion.

Do not allow OFR as the numbers used are not derived from candidates’ answers.
 – 11 – 8824 – 5005M

(ii) calculate the net present value (NPV) for Option 2 (show all your working). [2]

Method 1:
Expected outcome per year = total Expected outcome / years usage
$2 250 000/3 = $750 000 per year

The net present value equals the present value of the three years’ $750 000 annual return
minus capital cost of $2 000 000.

PV of the present value of the three years’ $750 000 annual profit =

Expected outcome per year  [1 − 1 / (1 + discount rate) years usage] / discount rate

$750 000  [1 − 1 / (1 + .04)3] / .04 = $2 081 318.27 (allow rounding $2 081 318)
$2 081 318 – $2 000 000 = $ 81 318.

Method 2:
NPV= Exp outcome year 1 + Exp outcome year 2 + Exp outcome year 3 − capital cost
(1 + discount rate) (1 + discount rate)2 (1 + discount rate)3

NPV = $750 000/1.04 + $750 000/1.042 + $750 000/1.043 − $2 000 000 =

$721 153.85 + $693 417.16 + $666 747.30 − $2 000 000 = $ 81 318.31

Method 3:
(Expected outcome year 1  Discount factor at 4% year 1 + Expected outcome year 2 
Discount factor at 4% year 2 + Expected outcome year 3  Discount factor at 4% year 3) −
capital cost

$750 000  .9615 + $750 000/.9246 + $750 000/.8890 − $2 000 000 =

$721 125 + $693 450 + $666 750 − $2 000 000 = $ 81 325.

Method 4:
[Total Expected outcome  (Discount factor at 4% year 1 + Discount factor at 4% year 2 +
Discount factor at 4% year) / years usage] − capital cost
$2 250 000  (.9615 + .9246 + .8890)/3 − $2 000 000 =
$2 250 000  .9250 − $2 000 000 = $ 81 250

The net present value of Option 2 is between $ 81 250 and $81 318.31.

Award [1] for correct method and [1] for the correct answer. Each of the above four
methods is acceptable. If the candidates have followed a correct method and arrived at an
answer that is very slightly different than the range above, award [1] for method and [1]
for the correct answer, as the figures that the candidates produce could vary slightly
depending on how and if they rounded during their calculations. (Allow rounding)

If there is some logical attempt to calculate NPV but there is an error, award [1].
 – 12 – 8824 – 5005M

(d) Explain one reason why the net present value (NPV) for Option 2 may be inaccurate. [2]

We could mention two reasons to explain why the NPV calculated in (c)(ii), for Option 2, may be
inaccurate: 1) inaccurate interest rate predictions and 2) if capital costs changes.

If the discount rate goes up, the net present value will decrease. This decrease in net
present value stems from the fact that future income streams will be discounted at a higher
rate. The fact that its NPV at 4% is only $81 318, an increase in the discount rate from 4% to
6% would mean that Option 2 would have a negative NVP.

Even if the discount rate for Option 2 remains at 4%, if the actual capital cost of Option 2
turns out to be $2 081 319 or higher, the NPV of Option 2 would be negative. If both
negative outcomes occur (discount rate rises and capital costs turn out to be $2 200 000 rather
than $2 000 000), Option 2 would be a bad investment, at least on a three-year investment
horizon.

Other generic answers include:

• The initial cash outflow in the NPV calculation should be higher than initially projected.
• Underestimating the cost inflates the NPV, making the project appear more attractive than it
actually is.

Award [1] for stating that the change in discount rate or the increase in capital cost will reduce
the NPV. Award an additional [1] if the candidate states that under either scenario the NPV will
be negative.

Do not award marks for answers that explains why the revenue is subject to change as it is a
generic reason that applies to various investment appraisal methods.
 – 13 – 8824 – 5005M

Section B
4. (a) Describe one disadvantage of an autocratic leadership style. [2]

Autocratic leadership is characterised by individuals having control over all decisions with
little or no delegation of responsibility and limited one-way communication.

Disadvantages include:
• it discourages group input helping to isolate group members with subsequent lack of
motivation;
• it creates a workforce dependency on decision making by the leader;
• it ignores creative solutions to problems and expertise from members of the group.

N.B. Application not required.

Award [1] for a partial description (e.g. someone who takes all the decisions) with an
additional [1] to include a full description highlighting aspects of the actual disadvantage of
autocratic leadership, similar but confined to the disadvantages above.

(b) Using Figure 2 and Table 6, comment on the survey carried out by Eunju. [2]

The survey involved a relatively simple ‘scoring’ system with marks out of ten.

Comments may focus on:

• the differences in the number of responses between the different countries; E.g. Thailand
has 63 organizations participating in the survey compared to South Korea that has only 11;
• the mix of results in different countries (considering average marks included in Table 6);
• the variations in the trainer enthusiasm score (Thailand 9.5 out of 10 and South Korea 6.8
out of 10);
• the usefulness of the survey to Eunju;
o it gives a general impression of what is going well and what isn’t;
o it may be based on flawed collection methods;
o it could be used to compare scores in different countries.

Accept any other relevant comment.

Award [1] for a comment in context. An additional [1] if there is some mention of the actual data
in terms of a figure from the data.
 – 14 – 8824 – 5005M

(c) Explain two methods/techniques of primary market research, other than surveys, that Eunju
could use to gather information to help her assess the training provided by CLX. [4]

Eunju could have carried out:

• interviews; allows for more open-ended questions about training experience for participants
• focus groups; similar to above
• observations; would allow Eunju to observe directly and avoid potential cultural bias in
surveys.

N.B. Use of “training” as application is acceptable for any method/technique.

Mark as 2 + 2

Award up to [1] for some explanation of each method and further [1] for showing context related
to how Eunju could have used the method. Award a maximum of [2].

E.g. Focus groups could be used to gather information from a selection of previous customers.
Such as the quality of the trainer’s enthusiasm. A round table discussion (could be virtual) might
allow Eunju to ask direct questions (qualitative questions) and get a range of responses that go
beyond a simple score out of ten. The information might be more useful to Eunju.

Award a maximum of [4] in total.

(d) Explain one advantage of sales forecasting for CLX. [2]

Sales forecasting is the process of estimating future revenue by predicting the amount of
units that the business might sell in the coming time periods. The technique makes use of
previous sales data plus other information to make the predictions.

Advantages include:
• helps to set targets (allows the sales team at CLX to assess how many courses they need
to put on to meet the target);
• aids planning of resources (number of trainers required etc.);
• aids strategic planning (CLX can make future strategic decisions e.g. the decision to pull
out of a particular country/region eg. South Korea is the smallest market with relatively low
marks in the Table 6 survey
• allows CLX to learn from past mistakes.

Award [1] for stating an advantage of sales forecasting or for giving a broad definition.

Award [2] if the candidate provides an accurate advantage and makes contextual references to
CLX related to training courses, etc.
 – 15 – 8824 – 5005M

(e) Using the information provided in the stimulus and in Figure 2 and Table 6,
recommend whether CLX should engage in contingency planning. [10]

Contingency planning is where an organization tries to be ready to respond effectively in

the event of an emergency or unexpected event.

In the case of CLX the following is contextual relevance as follows:

• What can be taken from Figure 2 and Table 6?;

• Eunju is an autocratic manager. She will want everything fully planned where she can;
• there are issues with their market/customers in South Korea. Eunju may want to plan for
possible problems before they fully arise;
• the success of contingency planning depends on communicating and delegating key tasks
which could be a problem for Eunjus autocratic style;
• conversely her autocratic style could be advantageous where quick decisions need to be
taken in an emergency;
• contingency planning is often costly and time consuming for problems that may never
arise. Does CLX have the available resources to spend time doing this?;
• CLX sell their services in a range of different countries (throughout South East Asia). It is
possible that cultural differences may lead to sales reducing. Different expectations and
rules/laws (gaining visas etc.) could make the continued operation in other countries difficult;
• political instability in the region may result in a sudden loss of sales;
• changes in technology and a switch to online learning may have a significant impact on
CLX.

As a possible solution to the problem, CLX might accept Eunju’s contingency planning
argument if they are keen to plan for any possible outcome of risky situations. The issues
that exist in South Korea could involve damage to the reputation of CLX; loss of staff; loss of
future sales/profits; damage to the objective of developing their services etc.

A counter view might be to simply deal with situations as they arise, in the knowledge that
the associated risk is not that great.

Allow any reasonable developed solution.

Marks should be allocated according to the markbands on page 3 with further guidance below:

If the candidate makes no reference to Figure 2 or Table 6 then the maximum mark to be
awarded is [6] even if there is some balance.

N.B. Candidates cannot reach the top marks if there is no relevant reference/application to the
stimulus. They must also show some awareness/explain the limitations of the stimulus material.

Candidates are expected to present an advisable course of action with appropriate supporting
evidence/reasons. This recommendation may be presented as a conclusion.
 – 16 – 8824 – 5005M

5. (a) State one advantage and one disadvantage to a franchiser of retailing through franchises. [2]

Advantages of franchising include:

• requires less capital than owning retail outlet;
• reduces costs: each franchisee finances their own franchise outlet;
• increases brand awareness;
• most supervisory responsibility falls to franchisee;
• reduces risk;
• relatively simple and easy way to grow quickly.

Disadvantages of franchising include:

• complexities of following regulations and laws across multiple jurisdictions;
• each time someone applies to be a franchisee, the franchiser spends some money with no
guarantee that the applicant will be approved;
• increased chances for legal disputes;
• loss of complete brand control (potential quality issues).

Accept any other relevant advantage/disadvantage.

N.B. no description required.

Award [1] for an advantage stated and [1] for a disadvantage stated. Award a maximum of [2].

N.B. the candidate must answer this question from the perspective of the franchiser.

(b) Explain how DSP’s collection of big data could impact two of DSP’s stakeholder groups other
than employees, management, and shareholders. [4]

Affected relevant stakeholders include:

Competitors: With information on the paints sold (colour, size, location, customer, even time of
day sold), DSP can more effectively anticipate its customers’ wants and needs. Almost
immediately, DSP’s management felt that the company was more competitive.

Suppliers: Gathering of big data is done in real time, which allows suppliers’ management to
know in an instantaneous fashion what pigment and other supplies are needed by DSP
Thus, suppliers will need to arrange for smaller but possibly more frequent deliveries of supplies
to DSP.

Franchisees: As DSP gets better at identifying and anticipating consumer trends, it will be
able to encourage franchisees to stock colours and paints that are in fashion, boosting
franchisees’ sales and, in turn, DSP’s sales.

Customers: As DSP gets more efficient and more effective at marketing, DSP’s customers
(franchisees) and franchisees’ customers will get more desirable products and
better service. DSP noticed quite quickly that retail sales of its paint increased after it began
collecting big data.

Table 7 shows that there are famous companies who are using big data to boost revenue.

Mark as 2 + 2.

Award [1] for stating one of the four stakeholder groups above and an additional [1] for an
explanation and application to the stimulus up to two stakeholder groups.

Award a maximum of [4] in total.

 – 17 – 8824 – 5005M

N.B. Candidates may state other stakeholders which have some relevance but no opportunity
for application to the stimulus. For example, environment pressure or watch dog groups would
probably be pleased that DSP has improved its efficiency, which would reduce waste and
disposal of old paint.

If a candidate states a relevant stakeholder other than employees, management, shareholders,

competitors, suppliers, franchisees, and customers, award [1] provided the candidate explains
the relevance.

(c) With reference to DSP, distinguish between a cost centre and a profit centre. [4]

A cost centre is a section of a business where costs are incurred and recorded.

A profit centre is a section of a business where both costs and revenues are identified and
recorded.

When DSP first hired the data mining expert, the intention was that they work in support of
operations and marketing. While the data mining would presumably help DSP become more
profitable, by itself the data mining office generated no revenue. Only costs were associated
with them and their staff.

However, when the data mining expert suggested that DSP start selling the data that that
their office collected and analysed, the data mining office would now generate revenue.
Thus, the data mining office could now become a profit centre and would start exploring
other types of information to gather as well as identify potential customers other than those
just in the construction and decorating industries.

Mark as 2 + 2

Award [1] for correct explanation of what a cost centre is and an additional [1] for application to
the stimulus.

Award [1] for correct explanation of what a profit centre is and an additional [1] for application to
the stimulus.

Award a maximum of [4] in total.

 – 18 – 8824 – 5005M

(d) Using information in the stimulus and Table 7, discuss the impact on DSP of its use
of data mining to inform decision making and its use of data to monitor and manage employees.
[10]

The use of data mining appears to have had a positive impact on DSP’s operations. Almost
immediately after collecting and mining data, DSP saw its operations become more efficient
and marketing more effective. Table 7 shows that there are famous companies who are using
big data to boost revenue. The CFO is keen to follow suit. Sales to retail customers by the
franchisees and sales to franchisees by DSP increased. The shift from JIC to JIT would have
reduced stock levels and working capital requirements. By identifying trends in real time
through sales data, DSP’s brand identity probably improved. Because all these
improvements probably led to improved profits, management and shareholders were
surely pleased. And, because the company had a profit-related pay scheme, increased
profits would mean greater pay for employees.

However, the decision to make the data mining office a profit centre presents potential risks.
One, whenever a “collector” of data sells the information on the open market, they run the
risk of being accused of unethical practices, as many people view the sale of data, especially
on customers, as a violation of their right to privacy, and thus exposes DSP to potential
legal risks. Further, once the data has been sold, even if the buyer has agreed not to resell it,
DSP has lost control of the information. DSP’s big data customers might resell the data
anyway, thinking that DSP will never find out. Finally, if DSP’s competitors ever got the
information, they could use it to erode DSP’s competitive advantages.

The decision to use data to manage and monitor employees has both potential benefits and
risks. On the one hand, perhaps DSP has some employees who do not work as hard as they
should and the Digital Taylorism methods could help the company identify them. Workers,
just knowing that they are watched, might nudge them to work harder and faster. The data
mining expert promised major improvements to operations because of this approach. Time
will tell whether those improvements materialize.

However, DSP is also bearing costs for this approach. There was some expenditure for the
chips to go into employee identification badges and for the hardware and software needed to
monitor the employees. Some people had to be hired to evaluate the data produced. Further,
because many employees disapproved of the Digital Taylorism, labour turnover
increased, which would lead to the increased recruitment and training costs.

The impact on DSP of its use of data-mining to inform decision-making and its use of data to
manage and monitor employees together appear to be having an impact on the
organizational culture. The founder and one-time 100% owner had a paternalistic
leadership style that came to permeate DSP’s culture and endure long-after the company grew
and went public. The founder was committed to CSR, which employees typically find
inviting and motivating. Before Digital Taylorism arrived, labour turnover at DSP was low.
This paternalistic culture might aid acceptance by the majority of workers. DSP might be willing
to accept an increase in labour turnover in the short term as a way to re-align the workforce
around a new common goal. Furthermore, those of the younger generation are more accepting
of the reality that individual data is regularly shared outside the workplace so why not within.

All decision making appeared to have reoriented the company toward a pure profit motive.
The company started selling big data, which is ethically and, in some cases, legally
questionable. Digital Taylorism fosters a completely different corporate ethic than was the
paternalistic leadership style of the founder and subsequent management. Labour turnover
increased, suggesting that the “social contract” between DSP’s employees and DSP began to
crack.
 – 19 – 8824 – 5005M

Marks should be allocated according to the markbands on page 3 with further guidance below:

If there is no balance, then for a one-sided response where only one impact is considered then
award a maximum of [3].

If the candidate makes no reference to Table 7 then this only partially addresses the demands
of the question, then the maximum mark to be awarded is [6] even if there is some balance.

If the candidate discusses one impact only (with balanced and substantiated arguments) then
award a maximum of [5].

A balanced response is one that provides at least one argument for and one argument against
each impact.

Candidates may contrast one option with another for a balance as long as at least two
arguments are given for each impact.

N.B. candidates cannot reach the top marks if there is no relevant reference/application to the
stimulus. They must also show awareness/explain the limitations of the stimulus material.