Point/Knowledge

Application

Analysis

Evaluation

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I will only be solving Question 1 from the paper to give you an idea. Apply the same to question 2

From 2023 Specimen Paper 2

(a) (i) Identify one benefit for a business of a unique selling point (USP). [1] Differentiates itself from competitors

(ii) Explain the term ‘sole trader’ (line 4). [3] A sole trader is where one owner has full control of the business which means their personal positions that are at risk because of unlimited liability.

(b) (i) Refer to Fig. 1.1. Calculate the value in dollars ($) of BH’s share of the market. [3]

Market Share of BH(15%) x Total Market Value($600K)

(ii) Explain one reason why Amir carried out market research. [3]

Market research is where a business finds out about its customers or market. Doing this will allow Amir to minimise risk of launching Asian food as he can assess the future demand.

(c) Analyse one advantage and one disadvantage, to Amir, of BH becoming a private limited company. [8]

One advantage is that Amir can protect his business through limited liability which would mean that his potential loss from the business would be limited to the amount that he has invested, not his personal possessions and wealth for example his house. There is also continuity of the business as the business can easily be transferred to Amir’s son as an inheritance on Amir’s passing.