Broadway Autos is a business that sells cars.

Mark scheme

Marking points from the official mark scheme (May/June 2011). The mark or mark type is shown in brackets.

1. [4] (a) Any four points × 1 mark each or two well-explained points × 2 marks each: the chain of production for cars will be primary to secondary to tertiary; raw materials will be produced and processed; the cars will be manufactured in a factory; by a car manufacturer who is in the secondary sector of production; Broadway Autos is in the tertiary sector of production; because it will order/purchase cars from the manufacturer; because it provides a service by selling cars to consumers; and it is in the retail trade so it is a retailer. Any other relevant point.
2. [3] (b) (i) $12 000 – $9000 = $3000 (1) ($3000 / $9000) × 100 (1) = 33.3% (1) OFR If the correct answer is given without working award full marks. The most likely error is using $12 000 instead of $9000 so the answer is 25%. Award 2 marks for this answer if working is given.
3. [2] (b) (ii) $12 000 × (5 / 100) (1) = $600 (1) OFR applies especially from (b)(i). If the correct answer is given without working award full marks.
4. [2] (b) (iii) Any one commercial document × 1 mark and any one point to explain the purpose × 1 mark: quotation – to show how much individual cars may cost, given in response to an enquiry; invoice – to give details of the purchase and the total amount payable; statement of account – may be issued instead of the invoice, shows the amount payable and any other transactions such as payment for licence; warranty/guarantee – against faults within a certain time period. Allow also advice note/delivery note. Any other relevant point.
5. [3] (b) (iv) Any three points × 1 mark each: Errors and Omissions Excepted (must be correct for the mark); if an error is made; or something is omitted from the document; the seller reserves the right to correct the mistake. Any other relevant point.
6. [6] (c) Level 2 (4-6 marks) Candidate has considered both the Internet account and using a local bank branch in context and has given a reasoned opinion as to whether or not the company needs both. (If a candidate has considered one of the two options, award 4 marks max.) The company is likely to use the Internet account for its daily transactions. It can obtain details of its debits and credits and its daily balance. It can pay bills, set up direct debits and standing orders, pay credit card bills, apply for loans and overdrafts and order cheque books. It can undertake 24-hour banking or at least access its accounts when it wants to do so. Although the company can use the Internet for many services, the company will use the local branch to obtain any cash it needs (probably using an ATM at the bank), pay in receipts in the form of cash and cheques and if necessary use the night safe at the bank. Company managers may want to talk face to face about the business, negotiate a loan or seek financial advice and this is better done face to face at the branch where a good relationship may be built up. It is evident that the company needs both an Internet bank account and access to the local branch. If the company already has both an Internet account and uses a local branch it must think that it needs both facilities. Level 1 (1-3 marks) Candidate has commented on using an Internet account and/or using a bank branch with/without an opinion. The company will use an Internet account for viewing its balance. It will make transfers. It will pay bills. It will not be able to obtain cash. It needs to go to a bank branch for this. It, therefore, needs both. NB answers relating to buyers = 0 marks.