Unit 2 exam technique (WBS12)

The paper

2 hours, 80 marks, calculator allowed. Questions may also draw on Unit 1.

• Section A: 30 marks on a case study (questions (a) to (e)).
• Section B: 30 marks on a different case study, same pattern.
• Section C: one 20-mark evaluate question.

In recent papers each 30-mark section ran 2, 4, 6, 8 and 10 marks. Formulas for the ratios (margins, current ratio, acid test) are not given, so learn them.

Command words and marks from the specification

Calculations

In the October 2024 mark scheme the 4-mark calculations were split 1 mark knowledge (the formula), 2 marks application (selecting and using the data) and 1 mark analysis (the answer). A correct answer alone scored all 4 marks, but a correct number without the unit (such as the $ sign or 'units') scored only 3.

So: write the formula, show the substitution, give the answer with units, and round sensibly (2 decimal places for ratios and money unless told otherwise).

Short and medium answers

• Define (2): knowledge only. Give a precise definition, ideally with a key term (for example capacity utilisation: current output as a percentage of maximum possible output).
• Analyse (6): marked 2 knowledge, 2 application, 2 analysis. Define or state the point, apply it to the named business using the case data, then develop the cause and consequence (because... so... which means...). No evaluation needed.
• Discuss (8): top level needs logical chains of reasoning and a balanced, contextualised assessment of competing arguments.

Assess (10) and evaluate (20)

• Assess (10): the top level (8 to 10) needs coherent chains of reasoning and a balanced, wide-ranging assessment that weighs competing arguments and reaches a supported judgement.
• Evaluate (20): the top level (15 to 20) needs fully developed arguments using quantitative and qualitative evidence from the case, full awareness of the validity and significance of competing factors, and an effective conclusion that proposes a solution or recommendations.

Evaluation tools: it depends on (what?), short run versus long run, which stakeholders gain or lose, the reliability of the data, the size of the effect, and the alternatives. In October 2024 the 20-marker asked candidates to compare just in time and factoring as ways to improve liquidity, so be ready to weigh two options against each other.

Worked example

Plan an answer to: 'Evaluate whether just in time inventory or factoring is the better way for a manufacturer to improve its liquidity.' (20 marks)

1. JIT: frees cash tied up in inventory, cuts storage costs and waste; but relies on reliable suppliers, risks stopping production, loses bulk discounts. Use case figures (inventory value, acid test).
2. Factoring: immediate cash from receivables (for example 80% now), predictable; but the fee cuts profit and customers may dislike it.
3. Weigh up: JIT is a long-term efficiency change and slow to set up; factoring is quick but costly each time.
4. Recommendation: depends on the cause. If inventory is the main tied-up asset and suppliers are reliable, JIT; if customers pay slowly and cash is needed now, factoring. Possibly factoring now and JIT later.

Answer: Two-sided analysis of each option in context, a direct comparison, and a conditional recommendation.

Check yourself

1. Section A is 30 marks, Section B is 30 marks and Section C is 20 marks. Check the total marks for WBS12.
   Show answer

   80 marks. 30 + 30 + 20 = 80 marks.

2. The paper lasts 120 minutes for 80 marks. How many minutes per mark is that?
   Show answer

   1.5 minutes. 120 / 80 = 1.5 minutes per mark.

3. Using 1.5 minutes per mark, how many minutes should you spend on a 30-mark section?
   Show answer

   45 minutes. 30 x 1.5 = 45 minutes.

4. In the October 2024 mark scheme, a correct calculation answer given without its unit (such as the $ sign) scored
   • 4 marks out of 4
   • 0 marks
   • 1 mark out of 4
   • 3 marks out of 4
   Show answer

   3 marks out of 4. Units matter: the answer mark needs them.

5. In a 6-mark 'analyse' question, the marks are split between
   • evaluation only
   • knowledge, application and analysis
   • knowledge and evaluation
   • the final judgement and the calculation
   Show answer

   knowledge, application and analysis. 2 + 2 + 2: no evaluation needed.

6. What does the top level of a 20-mark evaluate answer require beyond strong analysis?
   • A definition of every term in the question
   • At least four diagrams
   • A list of advantages only
   • An effective conclusion that proposes a solution or recommendations
   Show answer

   An effective conclusion that proposes a solution or recommendations. The conclusion must judge and recommend.

7. Why do answers that ignore the case study score poorly?
   • The examiner only reads the first paragraph
   • Application to the business in the extract is required for marks
   • General knowledge is never rewarded
   • Case studies are only used for calculations
   Show answer

   Application to the business in the extract is required for marks. Mark schemes reward application to the named business at every level.

8. Which sentence is an example of evaluation?
   • Factoring is likely to be more suitable in the short run, because the firm needs cash within weeks and JIT would take months to set up
   • Factoring is selling receivables to a third party
   • The current ratio is current assets divided by current liabilities
   • JIT means holding little inventory
   Show answer

   Factoring is likely to be more suitable in the short run, because the firm needs cash within weeks and JIT would take months to set up. It weighs the options with a reason and a time frame.

Practise with instant feedback Print this lesson

Sources

• Pearson Edexcel International Advanced Subsidiary/Advanced Level in Business specification (2018)
• Pearson qualifications: Edexcel International Advanced Level Business (2018)
• Pearson Edexcel IAL Business WBS12 Unit 2 mark scheme, January 2021
• Pearson Edexcel IAL Business WBS12 Unit 2 mark scheme, October 2024

Last updated 8 November 2026. Spotted a mistake? Tell us.