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‘D’ Paper 1 Question Guide

Overview

Timing🎓 Assessment% Final Grade
6 minsKnowledge 2 marks
Application 2 marks
Analysis 2 marks
15%

Example ‘D’ Question

2. Jose is a sole trader. He provides window cleaning services to business customers. His business does not benefit from any economies of scale because it is small. Jose has to pay his suppliers within 1 month. However, he does not offer his customers trade credit. Jose uses an old truck he has borrowed from his uncle to travel to his customers’ offices and shops. As the truck often breaks down, Jose is thinking of buying a new truck.

(d) Explain one advantage and one disadvantage to Jose of being a sole trader. [6]

Advantage: …………………………………………………………………………………………………………..
…………………………………………………………………………………………………………………………………
Explanation: …………………………………………………………………………………………………………..
…………………………………………………………………………………………………………………………………
Disadvantage: …………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………
Explanation: …………………………………………………………………………………………………………..
……………………………………………………………………………………………………………………………. [4]

Structure ‘D’ Question

KnowledgeAdvantageAdvantage of sole trader
ApplicationExplanationRelevant reference to the case study
AnalysisExplanation of the advantage.
KnowledgeDisadvantageDisadvantage of sole trader
ApplicationExplanationRelevant reference to the case study
AnalysisExplanation of the disadvantage.

Example ‘D’ Answer

We start with our first knowledge point for the advantage of sole trader: Keeps all the profit

For each explanation, we need to use relevant information from the case study (application) and explain the advantage (analysis).

In this example, the student makes a relevant reference to Jose’s cleaning business to secure the application mark and explains the benefits of keeping all the profits.

KnowledgeAdvantageKeeps all the profit
ApplicationExplanationIf his cleaning business is successful
Analysishe will earn more and this will encourage him to work harder.

We repeat the same combination of knowledge, application and analysis for the second part of the answer.

The student explains why unlimited liability will be a disadvantage using a relevant reference to the case study

KnowledgeDisadvantageUnlimited liability
ApplicationExplanationso if Jose is not able to pay the suppliers within 1 month
Analysishe could lose his personal possessions.
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Past Paper Business Exam Guide