Adam and Bella have set up a partnership to make and deliver boxes of ready meals. Adam will make the meals and Bella will deliver the meals in a van. They have drawn up a deed of partnership.

Mark scheme

Marking points from the official mark scheme (May/June 2023). The mark or mark type is shown in brackets.

1. [2] They will have increased capital/lack capital/share capital/finance
2. [2] They can share the workload/duties/responsibilities/share skills/lack skills
3. [2] Can share bills/losses/risks
4. [2] Cover for each other during holidays/illness
5. [2] Easy to set up/no legal formalities
6. [2] Can consult each other/help in making decisions
7. [2] More ideas
8. [1] Name of partnership/partners
9. [1] Objectives of partnership
10. [1] Nature of the business
11. [1] Duties/role of each partner/rules and regulations
12. [1] Capital contribution of each partner
13. [1] Amount of salary to be paid to each partner
14. [1] Duration of partnership
15. [1] Conditions for ending the partnership
16. [1] Witnesses
17. [1] Signatures
18. [1] Date
19. [1] Share of profits/losses
20. [1] Interest on drawings/interest on capital
21. [3] Acts as proof/evidence/written record (1) it is legally binding on the partners (1) as they both signed it (1) can be used in court (1) as a legal document (1) to prevent fraud (1)
22. [3] Prevents misunderstanding/confusion (1) stops conflict/future disputes/arguments (1) able to verify what is in the deed (1) e.g. over share of profits/their duties/business activities (1) as partners must act according to the deed of partnership conditions/what is in the deed (1)
23. [3] Yes - Allows them to concentrate on the jobs they are best at (1) increasing their expertise/skills (1) more productive (1) increased output (1) greater economies of scale (1) increasing their efficiency (1) fewer mistakes (1) minimised waste/resources (1) reducing costs (1) save time (1) e.g. delivery times reduced (1) improved quality of food (1) leading to more satisfied customers (1) increased brand image/brand loyalty (1) improved delivery service (1) attracts more customers/increases sales (1)
24. [3] No – Boredom of doing one task (1) could result in less job satisfaction (1) less input by partners (1) may lead to lower quality of standard of meals/delivery service (1) does not allow partners to cover for each other (1) could lead to reduced quality (1)
25. [3] Price: $21 (3)
26. [3] Method: $15 × 40/100 = 6 (1) $15 + $6 (1)
27. [8] Local newspapers serve part of a country.
28. [8] Adverts can be seen on the side or back of transport vehicles with artwork and branding.
29. [8] Local newspapers: Can provide detailed information – e.g. prices of meals, pictures of menus
30. [8] Has a potential wide circulation/target audience – all the people in Adam and Bella's area
31. [8] Relatively cheap – compared to other advertising media
32. [8] Does not have sound or vision or good colour reproduction – meals might not look very inspiring to eat
33. [8] Adverts may not be noticed – especially if it a small advert
34. [8] Less people are reading newspapers – more people reading online
35. [8] Van: Can easily be seen by everybody – easily visible
36. [8] Can be eye-catching – large advertising images or colours that standout and attract the attention of other road users
37. [8] Cost effective to do advertisement – cheaper than newspaper advertising which must be paid by each word and size, whereas when Bella is driving the van, she will be advertising automatically, without any additional cost
38. [8] Can provide area coverage – will not be advertising in one place as Bella may deliver outside her immediate area
39. [8] Longevity – Unlike other types of advertising, such as newspaper advertising, if the ads campaign finishes, then they will not be shown again whereas van advertising will still be able to do advertising at all times
40. [8] When a van meals delivery service is parked along a quiet road – the advertising could be seen by less people
41. [8] If there are changes in the product logo or image – it will cost Adam and Bella to replace the advert
42. [8] Evaluation: Much will depend on Adam and Bella's advertising and whether they own the van to advertise on it. Both local newspapers and van advertising will have good local coverage and be relatively cost effective. As a new business, it is recommended that Adam and Bella use both forms of advertising media in order to develop their brand name in the local area.