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Further information on National 5 Specimen
Question Paper, National 5 Specimen Coursework
and National 4 Added Value Unit assessment
National 5 Business Management
Key points
SQA is currently developing Course and Unit assessments. This document outlines our progress in
Course Assessment for the National 5 Course in Business Management.
The Business Management National 5 Course combines popular and realistic business topics from
the Standard Grade and Intermediate 2 Business Management Courses. It also introduces updated
content and increases personalisation and choice for learners.
Course assessment will consist of two components: a question paper (70%) and an assignment
(30%). Both will be externally marked. The assignment component is a new method of assessment
for this Course.
Each component assesses skills that draw on knowledge and understanding covered in the
Course, but the balance of these skills and the extent of knowledge and understanding differ
between each component. The question paper will have a greater emphasis on knowledge and
understanding, while the assignment will have a greater emphasis on skills.
The question paper will assess decision making, application of knowledge and understanding, and
knowledge and understanding. It will draw on questioning approaches currently used in Standard
Grade Credit and Intermediate 2 question papers.
The assignment will take the form of producing a business report. It will apply planning, research,
interpretation and evaluating skills in the context of a Business topic drawn from the Course
coverage. Learners have a high degree of choice of topic to allow for personalisation and choice.
Course assessment will be out of 100 marks.
National 5 Business Management specimen question paper (publication
by 30 April 2013)
The question paper will sample skills, knowledge and understanding from the mandatory
information on Course coverage. It will draw upon styles of questions used in Standard Grade
Credit and Intermediate 2 papers. The main changes are:
 All questions are mandatory.
 More application of knowledge and understanding linked to a specific business context.
 Marks available for in-depth responses and/or development points, building a link to Higher.
 Questions in section 2 are topic based rather than being integrated across topics.
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 Introduction of Social Enterprises within the Course coverage.
The question paper has 70 marks and will take 1 hour 30 minutes to complete. It has two sections.
Section 1 – 30 marks
Section 2 – 40 marks
 Two mandatory stimulus-based
questions.
 Four mandatory questions of 10 marks
each.
 Small case study of real business.
 Skills — knowledge and understanding
and application of knowledge and
understanding.
 Skills – decision making and
application of knowledge and
understanding.
 Each question is topic-based — this is
a departure from current Intermediate 2
 Learners will be expected to apply their
paper which integrates questions
business knowledge and
across topics.
understanding through the context of
the stimulus. The amount of detail
 Learners will be expected to
expected will be reflected in the marks
demonstrate business knowledge and
awarded per sub-question.
understanding.
 Each question has 15 marks — split
into short and limited response subquestions, ranging between 1 – 4
marks.
 Each question has extended and short
response sub-questions that will range
between 2 – 5 marks.
 Draws mainly on approaches from SG
Credit Business Management.
Questions from each section will be drawn from the mandatory Course coverage and
will ensure there is no duplication of topics so that there is a balanced coverage across
the Units.
To guide centres, it is suggested that Section 1 of the question paper can be completed
in 40 minutes, and Section 2 in 50 minutes.
Illustrative example of SECTION 1 question
Case Study: Palladium Executive Hire
Asif Ali owns Palladium Executive Hire. The business specialises in renting luxury cars,
such as the Rolls Royce Phantom and Baby Bentley, at affordable prices.
Asif received financial support from his family and the Prince's Scottish Youth Business
Trust (PSYBT).
The business has an excellent website; this is just one of the ways in which it offers a
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'first class service' to their customers. The website enables the business to advertise
promotions and special offers with discounts to customers who book online.
Palladium Executive Hire plans to expand and is currently seeking to recruit new staff.
The business offer employees good pay and this has resulted in a highly motivated
workforce.
Adapted from www.psybt.org.uk/casestudy/palladiumexecutivehire
You should note that although the following questions are based on the case study above,
you will need to make use of knowledge and understanding you have acquired whilst
studying the Course.
1a
(i) Outline a reason Asif approached PSYBT for financial support rather than 1 mark
his bank.
(ii) Other than finance, identify 2 areas of support provided by PSYBT.
2 marks
b
From the case study, identify 2 business aims for Palladium Executive Hire.
2 marks
c
Describe how stakeholders identified from the case study may influence
Palladium Executive Hire.
4 marks
d
Asif benefits from a highly motivated workforce. From your knowledge and
understanding, outline ways that Asif could motivate his staff, other than
pay.
e
2 marks
Asif offers a first class service to his customers. From your knowledge and
understanding, describe ways the business can ensure it maintains a quality 4 marks
service.
(15)
SECTION 2
1
(a)
Introduction is the first stage in the product life cycle. Identify other
stages of the product life cycle.
3 marks
(b)
Explain the use of branding by an organisation.
4 marks
(c)
Compare desk research and field research.
3 marks
(10)
2
(a)
A charity is an example of an organisation that operates in the third
sector.
(i) Identify the other sectors of the economy.
(ii) Describe each of the sectors identified in (a)(i)
4 marks
(b)
Explain the importance of good customer service.
2 marks
(c)
Describe the advantages and disadvantages of setting up in business
as a sole trader.
4 marks
(10)
National 5 Business Management Coursework
April 2013)
(publication by 30
At National 5 the assignment will have 30 marks (30% of the total mark).
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The assignment will give learners an opportunity to demonstrate planning, research, interpretation
and evaluating skills in the context of a business topic drawn from the mandatory Course coverage.
Learners have a high degree of choice of topic to allow for personalisation and choice.
This will involve preparing a short business report that will demonstrate the learner’s ability to:
 Choose, with minimum support, an organisation and select a business area to focus their report
on.
 Use research skills to gather information and/or data appropriate to the organisation.
 Collate the findings under suitable headings.
 Make use of charts and graphs where appropriate.
 Analyse and interpret the findings.
 Draw valid conclusions based on the evidence gathered.
 Present the findings, using correct business terminology.
The report should be no longer than four pages excluding appendices. At least two sources of
data/information should be provided as appendices. Technology should be made use of where
applicable in the production of the report.
The report should consist of three main sections, as follows:
Background Information
5 Marks
Research methods, findings and analysis
20 Marks
Conclusion/Layout
5 Marks
Examples of suitable organisations to base the report around will be provided by SQA, although the
learner is free to use an organisation of their own choice.
The preparation of the report should be completed in class time and under supervised conditions.
However, the research for the report can be carried out in open conditions. Learners should be
given sufficient time to carry out the necessary research and to complete the report for submission.
The nature of the evidence submitted as appendices could show either or both primary and
secondary information. For example: statistical, graphical or numerical data; survey results;
interview questions and/or answers; questionnaire and/or results; list of internet search engine
results; newspaper article or extracts; notes taken from a visit or talk; notes taken from a written or
audio visual source. Learners may be advised by teachers/ lecturers as to resources which would
be appropriate as appendices for the assignment at this SCQF level.
The assignment at National 5 helps to prepare candidates for progression to Higher and ultimately
to Advanced Higher.
Examples of areas that may be researched and reported on could include:
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 Marketing function eg pricing strategies
 HR function eg recruitment and selection policies
 Operations eg production methods
 Finance eg finance available for expansion
National 4 Business – Added Value Unit
At National 4, the Added Value Unit involves preparing a business proposal for an aspect of a new
small business. This will involve
 Choosing, with support, an aspect of a new small business to consider.
 Choosing and selecting appropriate information from sources relevant to the business aspect.
 Preparing a simple business proposal, based on research findings and relating to the context of
the business aspect.
 Presenting the business proposal to others, using a method suitable for the context of the
business aspect chosen.
 Making comments relating to the likely outcome of the proposal.
The National 4 Added Value Unit will be internally marked by centres in line with SQA guidelines,
and externally quality-assured by SQA.
The assignment will be conducted under some supervision and control. While most work will be
undertaken independently, there is also scope for group work at this level.
Learners will produce a report in response to an open brief. This will involve carrying out research
and presenting findings that will assist the development of a new small business. Learners will use
enterprising, planning, research, decision making and communication skills during this process.
Learners will be expected to keep a record of their progress through the assessment process such
as a checklist, blog, or log book and may present their evidence in any format that demonstrates
achievement, eg a short written report/PowerPoint presentation/simple business plan.
This is a pass/fail Unit and will be judged using criteria rather than marks. Information will be given
on how centres can generate and gather evidence and make assessment judgments for this Unit.
An example of a possible open brief might be:
Investigate the competition for a new small business in your local area.
 Show how the business you have chosen competes with its rival(s).
 Conduct a survey to find opinions on the new business from friends/family etc.
 Suggest a suitable ‘sales promotion’ for the business. Justify reason for your choice.
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