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Business Studies IGCSEPDF 170

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PDF 170

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0450/12 Cambridge |GCSE — Mark Scheme May/June 2025 PUBLISHED Question Answer Marks Guidance 3(e) Do you think a bank loan is the best source of start-up 6 | This is ageneral question so there are no marks for capital for a new business? Justify your answer. application. Award up to 2 marks for identification of relevant points. Some points analysis can be advantages and/or Award up to 2 marks for relevant development of points. disadvantages for different sources but only award the same Award up to 2 marks for a justified decision as to whether a point once. bank loan is the best source of start-up capital for a new business. For evaluation to be awarded justification will usually follow on from relevant analysis of points. Points might include: Bank loan e = Quick to arrange [k] so does not delay plans/so can pay bills on time [an] e Must pay interest [k] increasing costs/expenses/cash outflows [an] e Must repay [k] e Able to obtain large/full amount [k] « May need security/collateral [k] which may not be available for a start-up / so personal assets may be at risk [an] Other methods could include: * Own savings [k] as no need to repay [an] e Borrow from friends/family [k] as may give long time to repay [an] e = Overdraft [k] can arrange quickly/only pay interest when used [an] ¢ Government grant [k] which has no interest [an] « — Crowdfunding [k] butno guarantee can raise full amount [an] Other appropriate responses should be credited. 2(b) Calculate X and Y. 2 | X must be shown as a negative number i.e. brackets / minus Award 1 mark for each correct calculation. X: $(15.000) or (15) or -15 [1] Y: $90 000 or 90 [1] sign. $ sign and 000’s not required as could write in table.