O-LevelCommerceBusiness enterpriseOct/Nov 2012Paper 1 Q371 Mark

A well-known bakery sells its products through a nationwide chain of franchises. How does the franchisor benefit from this arrangement?

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 franchised premises are regularly inspected.

BThe franchisor is responsible for managing the outlets.

CThe franchisor receives royalty payments from the franchisee.

DThe franchisor supplies training and marketing for the franchisee.

✓ Correct Answer

The correct answer is C: The franchisor receives royalty payments from the franchisee.

📋 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 2012 examination, Paper 1 Variant 1.

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