Kadir runs a cash and carry warehouse supplying small-scale retailers and market traders in a retail market.

Mark scheme

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

1. [4] (a) Any four points × 1 mark each and up to 2 marks for a well-explained point:
2. Definition of trade as buying and selling for profit – award 2 marks.
3. • Kadir is involved in trade because he sells to retailers
4. • and he buys from producers
5. • he offers a variety of goods for sale
6. • purchased from many producers
7. • he maintains a supply of goods.
8. Any other relevant point.
9. [2] (b)(i) Any two features of a cash and carry warehouse × 1 mark each:
10. • variety of goods
11. • goods are displayed for sale
12. • customers come to buy and pay immediately for goods
13. • using cash/debit cards
14. • there is no credit given
15. • customers take away the goods themselves/provide own transport
16. • there is no delivery service
17. • self-service.
18. Any other relevant point.
19. [4] (b)(ii) Any four points × 1 mark each or two well-explained points × 2 marks:
20. • provides self-service for retail customers
21. • who are provided with large trolleys
22. • and can examine the goods for sale
23. • may give special offers/promotions
24. • enables retailers to buy in very small quantities
25. • provides parking for vehicles
26. • usually easily accessible to the retailers
27. • few services available so competitive prices offered
28. • sell a wide variety of goods
29. • usually stock goods that sell quickly
30. • display goods for sale
31. • long opening hours
32. • provides continuous supply
33. • provides storage for retailers who cannot afford own warehouse.
34. Any other relevant point.
35. [4] (c) Any two advantages explained in the context of the small-scale retailer × 2 marks:
36. • enables the retailer to undertake deliveries to customers when it is convenient
37. • enables the retailer to be flexible and not to rely on other forms of transport
38. • can collect goods from cash and carry warehouses without hiring other transport
39. • can shop around for the best prices for his shop and visit several warehouses
40. • can use the vehicle to perform other tasks – taking home staff, disposing of stock or equipment no longer needed
41. • can advertise the business on the side of the vehicle, giving details of where it is.
42. Any other relevant advantage in context.
43. (Allow advantage of road transport/owning own transport.)
44. [6] (d) Level 2 (4-6 marks)
45. Candidate has considered both options and has given a reasoned opinion. (If a candidate has considered only one of the two options, award 4 marks max.)
46. Ownership of a small-scale retailing business is hard work. It may be easy to set up but it requires long hours of work, a location convenient to customers and extra services to be successful. It may be combined with a post office. It may employ family members and all the profit made may be taken by the owner.
47. A market trader in a retail market may operate every day or may go to several different markets during the course of a week. The retail market may be covered or be in a central open area in a town. The market trader will have lower overheads than the small-scale retailer. The market trader will have to pay rent for the stall and have to supply the stock. The market trader can be flexible about whether or not the stall opens and may be selling cheap goods.
48. Compared with market traders, shops could offer a wider range of goods. More capital may be required for a shop – premises.
49. On balance, it is probably better to be a small-scale retailer in a small centre of population rather than a market trader in a market where success is dependent on who comes to the market and the weather.
50. Level 1 (1-3 marks)
51. Candidate has offered some superficial information on one or both of the forms of retailing, with or without an opinion.
52. A small-scale retailer is found in towns, villages and in housing areas. It may sell a small range of goods. It may sell a variety of goods in small units.
53. A market trader in a retail market will have a table. She will sell cheap goods. She will be affected by the weather. She may not make much profit.