Identify and explain one advantage and one disadvantage to Rosa and Eduardo of forming a business partnership.

Mark scheme

Marking points from the official mark scheme (May/June 2016). The mark or mark type is shown in brackets.

1. [2] award one mark for each relevant advantage/disadvantage
2. [2] award one mark for a relevant explanation of each advantage/disadvantage
3. [4] award two application marks for each advantage/disadvantage
4. Award one mark for each relevant advantage/disadvantage (maximum of two), such as:
5. • Increased capital
6. • Additional partners to work in the business/help with decisions/holidays/responsibility shared
7. • Additional specialisms/skills of partners
8. • More ideas.
9. • Unlimited liability
10. • No continuity
11. • Responsible for actions of other partners
12. • Disagreements may cause problems/arguments
13. • Slower decision making
14. • Profit will have to be shared.
15. Award a maximum of three additional marks for each explanation - 2 of which must be applied to this context – of the advantage/disadvantage.
16. Indicative response: Increased capital to put in the business [k] because Rosa and Eduardo will each invest $50 000 each [ap]. This will reduce the need to borrow money, saving interest payments, [an] when the business expands and moves to larger premises [ap].
17. Possible application marks: qualified dentists; business set-up 10 years ago in country X; $50 000 each partner; largest dentist clinics in the country; 1 general manager for the clinic; bank loan to pay for new computer system; reputation for high quality treatments; private patients; 3 months to pay for treatment; move to larger premises; offer teeth whitening; job vacancies for dentists and assistants; information from Appendix 1 and 2.
18. There may be other examples in context which have not been included here.
19. Knowledge/Analysis/Evaluation – award up to ten marks using the levels-based mark scheme below.
20. Level 3: At least 2 x Level 2 + 7-10 marks. Well justified conclusion as to whether there will be conflict between the different stakeholder groups.
21. Level 2: 4-6 marks. Detailed discussion of the objective of each stakeholder group.
22. Level 1: 1-3 marks. Stakeholder group objective outlined.
23. Level 1: One mark for each L1 statement (max of three marks) e.g. Employees want their jobs to be secure.
24. Level 2: One L2 explanation can gain four marks and a further mark can be awarded for each additional L2 explanation (max six marks) e.g. Employees will want their jobs to be secure so they will keep receiving a wage for working in the dentist clinic. If the business is successful then they are likely to keep their jobs but if not then they will be made redundant and will receive no wage at all. (Four marks for L2 answer + one application mark for answering in the context of the dental clinic.)
25. Level 3: For L3 to be awarded there needs to be at least two L2 marks awarded and then a conclusion which justifies whether conflict between the different stakeholder groups is likely to occur.
26. Award up to two additional marks for relevant application.
27. Relevant points might include:
28. • Owner - invested own savings; make profit; expand to gain economies of scale; provide a high quality service
29. • Patients - good treatment; affordable prices
30. • Employees - high wages; secure job; good working conditions.
31. Possible application marks: qualified dentists; business set-up 10 years ago in country X; $50000 each partner; largest dentist clinics in the country; pay high prices; employs 8 dentists, 10 assistants, 3 receptionists, 1 general manager for the clinic; new computer system requires fewer receptionists; reputation for high quality treatments; private patients; 3 months to pay for treatment; move to larger premises; offer teeth whitening; increasing number of Government-owned dentist clinics; job vacancies for dentists and assistants; information from Appendix 1 and 2.
32. There may be other examples in context which have not been included here.