Business Studies Common Level – Option ‘B’
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B J.23 Pre-Junior Cycle, 2020 Final Examination Business Studies Common Level – Option ‘B’ Marking Scheme 9638dd7b-6110-409b-9600-60ccfe535e16 DEB exams Pre-Junior Cycle Final Examination, 2020 Business Studies Common Level – Option ‘B’ Table of Contents Common Level: Section A Q.1 .................................................. 4 Q.2 .................................................. 5 Q.3 .................................................. 6 Q.4 .................................................. 7 Q.5 .................................................. 8 Q.6 .................................................. 9 Q.7 .................................................. 10 Q.8 .................................................. 11 Q.9 .................................................. 12 Q.10 .................................................. 13 Q.11 .................................................. 13 Q.12 .................................................. 14 Q.13 .................................................. 15 Q.14 .................................................. 15 Q.15 .................................................. 16 Section B Q.16 .................................................. 17 Q.17 .................................................. 23 Q.18 .................................................. 27 DEB B 2020.1 J.23_MS 2/32 9638dd7b-6110-409b-9600-60ccfe535e16Page 2 of 31 exams DEB exams Pre-Junior Cycle Final Examination, 2020 Business Studies Common Level – Option ‘B’ Explanation Conventions Used 1. A dash – before an answer indicates that the answer is a separate answer, which may be considered as independent of any other suggested answers to the question. 2. A single forward slash / before an answer indicates that the answer is synonymous with that which preceded it. Answers separated by a forward slash cannot therefore be taken as different answers. 3. A double forward slash // is used to indicate where multiple answers are given but not all are required. 4. Round brackets ( ) indicate material which is not considered to be essential in order to gain full marks. 5. ‘etc.’ is used in this marking scheme to indicate that other answers may be acceptable. In all other cases, only the answer given or ‘words to that effect’ may be awarded marks. In many instances only key words are given, i.e. words that must appear in the correct context in the student’s script in order to merit the assigned marks. 6. Answers which are given in this marking scheme should not be considered as the only possible answers that may be accepted. Answers which are synonymous with or equivalent to those in this marking scheme are also acceptable. 7. The detail required in any answer is determined by the context and the manner in which the question is asked and by the number of marks assigned to the answer. Current Marking Scheme Assumptions about these marking schemes on the basis of past SEC marking schemes should be avoided. While the underlying assessment principles remain the same, the exact details of the marking of a particular type of question may vary from a similar question asked by the SEC in previous years in accordance with the contribution of that question to the overall examination in the current year. In setting these marking schemes, we have strived to determine how best to ensure the fair and accurate assessment of students’ work and to ensure consistency in the standard of assessment from year to year. Therefore, aspects of the structure, detail and application of the marking schemes for these examinations are subject to change from past SEC marking schemes and from one year to the next without notice. Copyright All rights reserved. This marking scheme and corresponding paper(s) are protected by Irish (EU) copyright law. Reproduction and distribution of these materials or any portion thereof without the written permission of the publisher is prohibited except for the immediate use within a classroom. DEB B 2020.1 J.23_MS 3/32 9638dd7b-6110-409b-9600-60ccfe535e16Page 3 of 31 exams DEB exams Pre-Junior Cycle Final Examination, 2020 Business Studies Common Level – Option ‘B’ Marking Scheme (270 marks) Section A (90 marks) Answer all questions. All question carry equal marks. Question 1 (6) The graphic below shows the Irish Government’s income and expenditure for 2018. (i) What is the largest area of expenditure for the Irish Government? (1m) (1) – social benefits DEB B 2020.1 J.23_MS 4/32 9638dd7b-6110-409b-9600-60ccfe535e16Page 4 of 31 exams 2020 JC Business Studies - Option ‘B’ Question 1 (cont’d.) (ii) Distinguish between Capital Expenditure and Current Expenditure for the Irish Government. (4) Capital Expenditure (2m) – spending on once-off projects or infrastructure that will have long-term benefits for the country and its citizens // etc. Current Expenditure (2m) – the money spent by the government on a regular ongoing basis - majority of current expenditure involves the day-to-day provision of public services // etc. ** Accept student’s own wording if equivalent meaning conveyed. ** Accept other appropriate material. (iii) Which Government Department is responsible for preparing Ireland’s National Budget? (1m) (1) – Department of Finance (and the Department of Public Expenditure and Reform) Question 2 (6) The graph below shows the Irish Government’s planned expenditure by sector for 2020. (i) Calculate the difference (in € billions) between the Irish Government’s planned expenditure on the health sector and the agriculture sector. (2m) (2) – Difference = 18⋅33 – 1⋅65 = 16⋅68 (€ billion) ** Unit not required for full marks. DEB B 2020.1 J.23_MS 5/32 9638dd7b-6110-409b-9600-60ccfe535e16Page 5 of 31 exams 2020 JC Business Studies - Option ‘B’ Question 2 (cont’d.) (ii) The Government will spend an extra €1 billion on the health sector in 2020. Outline two reasons why the Government needs to increase spending on health. (4) Any 2: (2 × 2m) – to fund the construction of new hospitals / medical units, e.g. new National Children’s Hospital // – to meet increased running costs // – to purchase fixtures and fittings / beds for hospitals // – for the provision of ambulances // – to purchase medical technology / medical / diagnostic / therapeutic equipment // – for the provision of IT / computers / telecommunications technology // – to address the issues of overcrowding / long waiting lists in Irish hospitals // – to fund an increase in staff, e.g. nurses, doctors, administrative staff, etc., to deal with an increase in demand for health services // – Ireland’s ageing population means there is a greater demand for health services, which requires additional funding // etc. ** Accept student’s own wording if equivalent meaning conveyed. ** Accept other appropriate answers. Question 3 (6) Explain the difference between carriage inwards and carriage outwards. (2 × 3m) (6) Carriage Inwards – transport costs incurred by a company (1m) to transport purchases / raw materials (1m) into the company (1m) Carriage Outwards – transport costs (and handling charges) incurred by a company (1m) delivering finished goods (1m) sold to customers (1m) ** Accept student’s own wording if equivalent meaning conveyed. ** Figures in brackets show the breakdown of marks if answer incomplete. ** Accept other appropriate material. DEB B 2020.1 J.23_MS 6/32 9638dd7b-6110-409b-9600-60ccfe535e16Page 6 of 31 exams 2020 JC Business Studies - Option ‘B’ Question 4 (6) Fiona’s house is valued at €250,000 but she has only insured it for €225,000. A fire causes €40,000 damage to the house. (i) Calculate the amount of compensation to which Fiona would be entitled, given that there is a policy excess of €300. (3) Insured Value – Compensation = × Loss – Excess Total Cost 225,000 = / 0⋅9 (1m) × 40,000 – 300 (1m) 250,000 = 36,000 – 300 = €35,700 (1m) Accept correct figure only. ** Award full marks for correct answer even if no workings are shown. ** Figures in brackets show the breakdown of marks if the final answer is incorrect or incomplete. (ii) State and explain the principle of insurance relevant to the compensation she will receive. (3m) (3) Principle of insurance (2m) – average clause Explanation Any 1: (1m) – due to under-insurance, average clause applied to the compensation on the house // – a clause in an insurance policy that require a person to bear a proportion of any loss if the asset is insured for less than the full replacement value // – Fiona was considered to be her own insurer for one-tenth of the house // etc. ** Accept student’s own wording if equivalent meaning conveyed. ** Accept other appropriate material. DEB B 2020.1 J.23_MS 7/32 9638dd7b-6110-409b-9600-60ccfe535e16Page 7 of 31 exams 2020 JC Business Studies - Option ‘B’ Question 5 (6) Insurance companies may reward behaviours that reduce risk by lowering the cost of premiums. Identify one factor that an insurance company may take into account when calculating the cost of each of the following insurance premiums. (3 × 2m) (6) Factor 1. Health Insurance Any 1: – age // – sex // – current health status // – previous cover // – exercise regularly // – eat a healthy diet // – smoker // – alcohol consumption // etc. 2. Car Insurance Any 1: – age of the driver // – age of the car // – experience of the driver // – location / home address // – car alarm / immobiliser fitted // – limited mileage // – engine size, etc. 3. House Insurance Any 1: – location of house // – previous cover // – previous claims // – liable to flooding // – smoke alarm installed // – house alarm / monitored //