| Date | May 2018 | Marks available | 6 | Reference code | 18M.1.SL.TZ0.3 |
| Level | Standard level | Paper | Paper 1 | Time zone | Time zone 0 |
| Command term | Explain | Question number | 3 | Adapted from | N/A |
Question
Refer to Afghan Sun case study SL/HL P1 May and Nov 2018
Describe two advantages for AS of using cellular manufacturing in the production of its solar power systems.
Refer to Afghan Sun case study SL/HL P1 May and Nov 2018
Explain the advantages for Su of forming AS as a private limited company.
Markscheme
PLEASE NOTE: Cellular production is not included in the syllabus for 2024 exams onward. Related parts of this multi-part question may be used.
• Cellular production relies on team work, which helps motivation. Tasks are completed by the team.
• This could help AS achieve its desired high quality, efficient use of resources, reduction of waste.
• Complexity of assembling solar panels which may require teams.
Context includes: AS is based on teamwork (volunteers), good way to empower employees which is what Su wants to do, quality is important to AS.
Accept any other relevant advantage.
Mark as 2 + 2.
Award [1] for each advantage identified, and [1] for the development of each of these advantages in the context of AS, up to a maximum of [2].
Refer to Paper 1 markbands for May 2016 forward, available under the "Your tests" tab > supplemental resources.
Advantages:
• Limited liability – the business is fairly high risk so Su may need protection of her personal finances.
• Limited number of shareholders – may be important to retain the high ethical values.
• Difficult to takeover – Su will want to keep this project hers.
• Separate legal entity.
• Able to raise additional finance without losing control.
• Continuity assured.
Context includes:
• Protects Su’s other assets.
• Afghanistan is high risk, incorporation reduces the risks to Su.
• AK Bank may not want to work with an unincorporated business.
• May be easier to arrange finance as shown in cash flow.
Accept any other relevant advantage.
Marks should be allocated according to the paper 1 markbands for May 2016 forward, section A.
Award a maximum [3] for a theoretical answer.
Award a maximum [4] if only one advantage, in context, is considered.
Award a maximum [5] if the explanation is mainly descriptive, but in context.
