Mock exam paper C P1 Higher Level Marking Scheme

PRE - JUNIOR CERTIFICATE EXAMINATION, 2013

_____________________

BUSINESS STUDIES – HIGHER LEVEL –

MARKING SCHEME

Paper 1

W: http://www.irevise.com/ T: 091 - 520400

SECTION A

(80 marks)

Answer all 20 questions. Each question carries 4 marks

1. Explain the difference between a grant and a loan.

Grants are non repayable funds dispersed by one party (2m)

Loans – the borrowing of a sum of money for a fixed period of time (term) and is repaid on a regular basis in agreed installments (2marks)

2. Explain the term indemnity in relation to insurance

To pay compensation equal to the value of the loss or damage suffered by the insured person (4marks)

3. From the following list of business documents select those sent by the seller and list them in the order in which they are normally sent to the buyer during a credit transaction.

Invoice, Letter of Enquiry, Statement of Account, Order, Cheque, Receipt, Quotation.

Documents sent by the seller to the buyer:

(i) 1st Quotation____________________________________________________

(ii) 2nd Invoice_____________________________________________________

(iii) 3rd Receipt _____________________________________________________

(iv) 4th Statement of Account __________________________________________

(4x1 marks)

4. A €120 investment matured to €126 after 6 months. Calculate the annual % return.

Workings

12/20 x 100/1= 10%

(4marks)

Answer

____________________________________

10 %

5. Mary buys an item on eBay for £94 Sterling. She goes to the bank to change euro into a sterling draft and sees the following rates quoted on the display board.

Currency

Bank Sells

Bank Buys

Sterling

0.89

0.92

SHOW WORKING

94/0.89 (4marks)

Calculate the amount in euro that Mary will pay for £94 sterling

Answer

____________________________________

105.62(rounded) €

6. Study the following Balance Sheet and answer the questions that follow.

Balance Sheet as on 31-12-2012

€ €

Fixed Assets

Current Assets

Current Liabilite...

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