Identify four stakeholder groups of ACE and explain why each group will be interested in the published accounts.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2014). The mark or mark type is shown in brackets.

1. [8] (a) Content: Shareholders/owners; Workers; Managers; Customers; Suppliers; Local community; Bank; Director; Government; Competitors; Pressure Groups. The marks available for this question are as follows: 4 marks for knowledge; 4 marks for application/explanation. 1 mark for each stakeholder group identified plus 1 explanation mark for why each stakeholder group will be interested in the published accounts (2 marks × 4 stakeholders). Stakeholder: Shareholders (1 knowledge mark). Explanation: Shareholders (1) will want to see if ACE has made high net profit as they will want to be paid a dividend (1 explanation mark).
2. [12] (b) Content: Gross profit margin 2013 80% (L2) Net profit margin 16% (L2) ROCE 33.3% (L2) Level 1: 1 mark for each statement e.g. the net profit increased by $20m from $20 m to $40 m (1 mark). Level 2: 5 marks for the first level 2 answer and then one extra mark for each additional level 2 answer up to maximum of 8 marks, e.g. the gross profit margin in 2013 is 80% and the net profit margin is 16%. 6 marks for two level 2 answers. Level 3: At least three level 2 calculations included and then a recommendation at the end which justifies whether ACE has an improving financial position or not. Knowledge/Application/Analysis/Evaluation Level 3: 9–12 marks, 3 correct ratios calculated + limited conclusion of the results (9 marks). 3 correct ratios calculated + well justified conclusion as to whether ACE should be pleased or not (10–12 marks). Level 2: 5–8 marks, Correct calculation of gross profit margin, net profit margin or ROCE Analysis of the ratios calculated. Level 1: 1–4 marks, Limited discussion of the financial position of ACE with no correct ratio calculations. Listing of difference in the figures between the two years.