As part of CIE’s continual commitment to maintaining best practice in assessment, CIE has begun to use different variants of some question papers for our most popular assessments with extremely large and widespread candidature, The question papers are closely related and the relationships between them have been thoroughly established using our assessment expertise. All versions of the paper give assessment of equal standard. The content assessed by the examination papers and the type of questions are unchanged. This change means that for this component there are now two variant Question Papers, Mark Schemes and Principal Examiner’s Reports where previously there was only one. For any individual country, it is intended that only one variant is used. This document contains both variants which will give all Centres access to even more past examination material than is usually the case. The diagram shows the relationship between the Question Papers, Mark Schemes and Principal Examiner’s Reports.
Question Paper Introduction First variant Question Paper
Mark Scheme Introduction First variant Mark Scheme
Principal Examiner’s Report Introduction First variant Principal Examiner’s Report Second variant Principal Examiner’s Report
Second variant Question Paper
Second variant Mark Scheme
Who can I contact for further information on these changes? Please direct any questions about this to CIE’s Customer Services team at: firstname.lastname@example.org
First variant Mark Scheme
UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
GCE Ordinary Level
MARK SCHEME for the May/June 2008 question paper
7115 BUSINESS STUDIES
7115/11 Paper 11 (Short Answer/Structured Response), maximum raw mark 100
This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the examination. It shows the basis on which Examiners were instructed to award marks. It does not indicate the details of the discussions that took place at an Examiners’ meeting before marking began. All Examiners are instructed that alternative correct answers and unexpected approaches in candidates’ scripts must be given marks that fairly reflect the relevant knowledge and skills demonstrated. Mark schemes must be read in conjunction with the question papers and the report on the examination.
CIE will not enter into discussions or correspondence in connection with these mark schemes.
CIE is publishing the mark schemes for the May/June 2008 question papers for most IGCSE, GCE Advanced Level and Advanced Subsidiary Level syllabuses and some Ordinary Level syllabuses.
First variant Mark Scheme
Page 2 1 Mark Scheme GCE O LEVEL – May/June 2008 Syllabus 7115 Paper 11
(a) 1 mark per correct calculation. (i) $9000 (ii) $10000 (iii) ($4000). $ not needed neither ‘000’s 
(b) Content. Credit terms imply the use of the goods before payment is made. This may be done because it is standard business practice; maintain customer accounts; marketing strategy. Retail customers likely to place large orders and hence important to keep their business. Identification of reason.  Development of reason [2–1] e.g. by offering credit terms he makes his business more attractive to customers and hence should increase sales and profits. (c) Content. Cash flow forecast is a prediction of the timing and amounts of cash in and out of a business. It is of value as a means of identifying cash needs and potential imbalances. It thus aids financial planning. Allows for overdraft funding to be put in place. It would allow Lloyd to anticipate future problems. Knowledge of cash flow [2–1] to include reference to amounts and timing. Explanation of usefulness [2–1]. (d) (i) Advantages of a business partnership might include potential access to more capital/wider range of expertise/sharing of responsibility/sharing of work load/joint liability. Others to be judged on merit. Advantages identified [2–1]....