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O-LevelCommerceBusiness enterpriseOct/Nov 2020Paper 1 Q301 Mark

The following headlines appeared in an African newspaper. [Two headlines: "Water privatisation resulted in angry demonstrations" and "EN plc takes over water supply – it promises big investment"]. What was the most likely reason for the demonstrations against privatisation of the water supply?

AEN plc may bottle the water for export.
BEN plc may put up water prices.
CInvestment in the water supply is not needed.
DWater supply may become contaminated.

✓ Correct Answer

The correct answer is B: EN plc may put up water prices.

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This O-Level Commerce Question

Topic

This multiple-choice question tests Business enterprise in O-Level Commerce (syllabus code 7100). It is worth 1 mark.

Source

This question appeared in the Cambridge O-Level Commerce Oct/Nov 2020 examination, Paper 1 Variant 2.

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