Microsoft Word 9609 s18 ms 13

partial explanation of two types of business cost (a cost explained without an 
example).
(2 
marks) 
Partial explanation of one other type of business cost or a list of two. 
(1 
mark) 
No creditable content. 
(0 marks) 
3

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9609/13 
Cambridge International AS/A Level – Mark Scheme 
PUBLISHED 
May/June 2018
© UCLES 2018 
Page 8 of 12 
Question 
Answer 
Marks
5(a) 
Analyse the advantages of venture capital as a source of finance for a 
small business. 
Level Description Marks 
4 
Good analysis of the advantages of venture capital as a 
source of finance for a small business 
7–8 
3 
Some analysis of the advantages of venture capital as a 
source of finance for a small business 
5–6 
2 
Some explanation / application of the advantages of 
venture capital as a source of finance for a small 
business 
3–4 
1 
Understanding of venture capital / source of finance / 
small business 
1–2 
0 
No creditable content 
0 
Answers may include the following: 
•
Venture capitalists are organisations or wealthy individuals who lend 
risk capital for start-up or expansion. 
•
Small companies may find it difficult to raise capital even if they are 
profitable. 
•
Venture capitalists supply essential financial backing for small 
businesses. 
•
They are usually easy to locate and many available at a relatively 
low cost. 
•
They are usually under strict supervision by regulatory bodies. 
•
Angel investors operate on a smaller scale. 
•
There is no repayment schedule – it is an investment so there is no 
repayment of debt as a cost of doing business. 
•
An immediate source of temporary finance unavailable elsewhere. 
•
Venture capitalists can also provide important advice, guidance, and 
consultation – can help with financial management.