O-LevelCommerceBusiness enterpriseMay/June 2016Paper 1 Q361 Mark

The Wheel Specialist is a franchise that restores alloy car wheels. Which statement about franchising is correct?

Q: What topic does this question test?

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

AThe franchise company covers the costs of starting and operating the business.

BThe franchise company employs all the staff working for the franchisee.

CThe franchisee chooses the name such as The Wheel Specialist.

DThe franchisee pays royalties based on revenues to the franchise company.

✓ Correct Answer

The correct answer is D: The franchisee pays royalties based on revenues to the franchise company.

📋 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 May/June 2016 examination, Paper 1 Variant 2.

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