Salima imports computers and sells them in bulk to many different kinds of retailers.

Mark scheme

Marking points from the official mark scheme (May/June 2015). The mark or mark type is shown in brackets.

1. [2] (a) Any two points × 1 mark each
2. she imports computers/buys computers
3. she sells computers
4. trade is buying and selling for profit (1 mark)
5. she is a wholesaler (1 mark)
6. [4] (b) Any four services × 1 mark each
7. Internet account
8. current account
9. deposit/savings account
10. bank statements
11. withdrawal on demand
12. safe custody of documents
13. payment services (2 marks max)
14. finance (2 marks max)
15. credit and debit cards
16. ATM
17. night safe
18. advice
19. any other relevant service
20. N.B. no marks for cash
21. [3] (c) Any three actions × 1 mark each
22. examine the computer
23. check the documentation
24. check that it was supplied by her
25. contact the retailer
26. if it is not fit for purpose apologise
27. offer to replace
28. issue a credit note
29. if it is fit for purpose return it to retailer with explanation
30. contact manufacturer
31. any other relevant point
32. [1] (d)(i) One mark for pay before the due date on the credit card statement
33. [4] (d)(ii) One advantage explained × 2 marks and one disadvantage explained × 2 marks
34. likely to increase sales as most people use credit cards to postpone payment
35. may give a competitive edge over some other companies who may levy a charge for using a credit card
36. enables the retailer to sell online and to receive payment safely
37. the retailer does not have to hold too much cash on its premises so less security risks
38. businesses are charged commission by credit card companies – this is sometimes passed on to the customer/resulting in less revenue for the seller
39. means increased paper work and record keeping as well as the card readers
40. delays in payment from credit card companies may result in cash flow problems
41. additional equipment needed
42. any other relevant advantage or disadvantage
43. [6] (e) Level 2 (4-6 marks) Has discussed whether or not Salima should sell directly to consumers and has given a reasoned opinion.
44. (If a candidate has discussed only one side of the argument, award 4 marks max)
45. If Salima sells directly to consumers, she might make more profit as she is cutting out the retailer. She will not be delivering bulk quantities to retailers and so will need to review her use of transport and may save costs.
46. Salima sells in bulk to retailers. If she were to sell directly to consumers, she would be selling individual computers and would probably have to provide after sales service for these computers. If she started selling directly to consumers she would be selling to the customers of the retailers who are buying from her. She would have to change the whole emphasis of her business and set up an online ordering service for consumers as well as a reliable delivery network. She would also have to prepare each computer individually for customers.
47. I would recommend that Salima continues to sell in bulk for retailers. If this is successful, why change? But she may be selling less to retailers who are buying direct from manufacturers and that is why she is considering direct selling. Perhaps she should investigate selling direct to consumers while maintaining her core business.
48. Level 1 (1-3 marks) Has commented on selling directly to consumers with/without an opinion.
49. Salima should sell directly to consumers. She may make more sales. She may make more profit. Retailers will no longer take part of the profit. She will have to review how she sells.