Business · Topic

Evaluation and judgement questions

Two sides, then a decision that could only be about this business. Sitting on the fence caps the marks.

1 original question in the bank, worth 8 marks · still building (1 more to reach the floor)

The questions, with the examiner reasoning

Evaluate8 marksIGCSE

A guesthouse in Maun is considering a large expansion, adding twelve rooms, to be built during the low season. Evaluate whether the owner should go ahead.

Show the mark scheme and the examiner note

Answer: Self-mark against the levels below: a decision is required, and the best answers make the decision conditional on something specific (for example, a signed contract with a tour operator for the shoulder months).

  1. Case for — twelve rooms at high season prices increases revenue; building in the low season avoids lost bookings
  2. Case against — a loan must be serviced through the low season, when the guesthouse is only half full, and the owner has no other income
  3. The specific risk — demand in the shoulder months is assumed, not evidenced
  4. Decision — proceed only if off-season demand is confirmed in advance (contract with an operator, or a smaller first phase), otherwise the loan is the danger rather than the building

Examiner technique: Write the decision in the first line of your final paragraph, then justify it. Markers look for the judgement, and a judgement buried at the end of a long sentence can be missed.