Amrit is a cattle farmer.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2014). The mark or mark type is shown in brackets.

1. [4] Any two commercial documents used after the order has been placed × 2 marks – • Advice note - used to inform Amrit that the cattle feed is going to be delivered • Delivery note - accompanies the cattle feed when delivered, signed on delivery • Consignment note – when using hired transport • Invoice - gives details of the cattle feed delivered together with the price • Credit note - informs Amrit of a credit if any of the cattle feed is returned • Debit note - to correct an undercharge • Statement of account – shows series of transactions between Amrit and the supplier in a given period of time • Receipt - provides proof of payment. Any other relevant document.
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3. [6] Any six points × 1 mark each and up to 2 marks for a well-developed point – • May use telephone to contact possible buyers • May email details of the cattle he wishes to sell • May communicate to discuss terms of sale • May arrange for collection of the cattle • May inform buyer of when to expect the cattle • May receive payment via the internet banking system • May send the relevant forms required by email / fax / letter post • May enter cattle for sale at a market using email / telephone • May have a website if he is a well-known cattle breeder with animals for sale • May be selling meat directly from the farm and communicating with customers when they come to buy • May meet buyers face-to-face to discuss sales. Any other relevant point in context. List of communication methods = 2 marks max.
4. [3] Any three points × 1 mark each • There are farming journals available • Likely buyers read trade journals • Able to give detailed information on what he has available • May be cheaper for the same size of advert • Trade journals more likely to be kept and referred to than newspapers • Advert may not be noticed in a general newspaper. Any other relevant point.
5. [1] One advertising medium such as Internet / hoarding on side of road at his farm / direct mail to potential buyers / side of his vehicle / agricultural show / television / radio and other mass media = 0 marks.
6. [6] Level 2 (4-6 marks) Has discussed whether or not Amrit is involved in commerce and has given a reasoned opinion. (For full marks a candidate should have commented on some aspect of trade and at least two commercial services and how they help Amrit - otherwise 4 marks max) Amrit, as a farmer, uses natural resources to rear animals and so is involved in a primary industry, the first stage of the production process. He is involved in a non-exhaustive primary industry. In order to make use of his production of cattle, he needs to make use of trade and aids to trade i.e. commerce. He will need to buy cattle feed and other supplies to rear his cattle. He will need to sell some of his cattle in order to make a profit and so he is involved in trade. He may sell them in the home market. He may even export them. In order to assist this trade, Amrit will need to make use of commercial services. He will probably need finance to expand his business. He will need a bank so that he can process payments and can deposit money from sales. He will need insurance to provide him with financial protection against loss. He will need warehousing to store his feed and other supplies and for in-wintering his cattle. He may move his cattle to market, to buyers or to the abattoir in his own transport or use a road haulage company. He may need to advertise in order to sell his cattle and he will need to communicate with buyers, with vets and with other farmers to conduct his business. Amrit is certainly a primary producer but he is also involved in commerce, without which he would not be able to conduct his business. Level 1 (1-3 marks) Has commented on Amrit in relation to commerce. Amrit is a farmer and a primary producer. He is also involved in commerce. He needs to sell his cattle. He buys feed and medicines. He stores these. He saves his money in a bank. He transports his animals. He communicates with farmers and with people who want to buy his cattle.