Introduction

Complete Business Studies will help you build the skills

and understanding you need throughout your course and
for future success
Whether you want to start your own business or work for a major
international company, the study of how businesses operate, make decisions
and affect our welfare, will provide you with the knowledge, understanding
and critical thinking skills you will need to succeed.
By studying Business Studies you will develop lifelong skills including
● the ability to make effective use of business terminology and ideas and to
recognise the strengths and limitations of these ideas in business contexts;
● knowledge and understanding of how different types of businesses are
organized, financed and operated, and how their relations with other
organizations, consumers, employees, owners and society are regulated;
● knowledge and understanding of the major groups and organizations
within and outside of businesses, and an appreciation of the ways in which
they are able to influence business objectives, decisions and activities;
● the ability to apply your knowledge and critical understanding to current
issues and problems to a wide range of business issues;
● confidence in using, calculating, interpreting and presenting business
data including financial data;
● the ability to distinguish between facts and opinions, and evaluate
qualitative and quantitative data in order to help build arguments and
make informed judgements;
● awareness of the nature and significance of innovation and change within
the context of business activities.
At the end of the Cambridge IGCSE or O Level course, your skills will be
assessed in 2 examination papers. These are as follows:

Paper 1 Paper 2
Time allocated 1 hour 30 minutes 1 hour 30 minutes
Number of Four questions based on four Four structured questions based
questions different businesses requiring on a business case study.
a mixture of short answers and All questions must be answered
structured data responses.
All questions must be answered.
Maximum 80 marks 80 marks
number of marks

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 Introduction

Complete Business Studies contains a wealth of

examination-style questions and sample answers to help
you practice your skills
The first thing you need to do when you sit an exam paper is to read the
instructions and each question carefully.
Each question will be divided into a number of different parts. Each part is
allocated a different number of marks and space in which you can provide
your answer. The number of marks will give you an indication of how you
should allocate your time.
Wherever possible, make sure you link your answers to the business activity,
situation or examples in the data or case study provided with the questions.
Doing so will help you to demonstrate your skills of application.
Different words are used at the start of each question to tell you what you
need to do, such as ‘identify’, ‘explain’ or ‘calculate’ or variations of these. The
following command words and phrases are often used in short answer and
structured questions. Each one requires you to answer them in a different way
to demonstrate your knowledge and skills in application, analysis and
evaluation:

Commands Some question examples What is required?

What is meant by...? What is meant by ‘a piece rate’? [2]
What is meant by a ‘business
cycle’? [2]
Calculate... Calculate the profit margin for the
business in year 1. [2]
Calculate the cost per unit if the
output of the factory is 3 000 units
per week. [2]
Identify... Identify two features of an
‘economic boom’. [2]
Identify two suitable sources
of finance the company could
use to finance its investment in
automated machinery. [2]
Identify and Identify and explain two possible
explain... advantages to the business of
researching the market for its
product. [4]
A short, accurate explanation of the term given to show you
understand what it means. One or two short sentences will
usually be enough.
For example, a good answer to the first question might be:
‘A piece rate is a fixed wage payment paid by a business to an
employee or group of employees for each unit of output they
produce or each task they complete’.
A short mathematical calculation using the figures provided.
Always show your workings.. Also remember to show the units
you are using such as $, % or volume of output per period.
Short, written responses on the required number of points
without the need for detailed explanation or discussion.
For example, the answers to the second question shown
might be: ‘(i) retained profits; (ii) a long-term bank loan’.
These types of questions require you to explain the points
you have identified. So, for example, the answers to the first
question might be as follows:
‘Advantage 1: It can provide accurate and up-to-date
information about market trends and consumer preferences.
Greater awareness of customer requirements will help the
business to adapt its products, pricing strategies and promotions
to appeal to customers and persuade them to buy its products’.

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Identify and explain two
advantages of being a
multinational company. [8]
Do you think...? Do you think that the company
should spend more money on
Justify your answer.
improving health and safety in its
factory? Justify your answer [6]
Consider... Consider three different methods
that the company could use
Recommend...
to increase motivation of
Given reasons for its production workers and
your choice / Justify recommend which method you
your answer. think will be the most effective.
Justify your answer. [12]
Identify and explain three ways
the company could raise capital
to finance the construction of
the new printing factory and
purchase of machinery and other
equipment. Which method would
you recommend and why? [12]
© OUP: this may be reproduced for class use solely for the purchaser’s institute
Introduction
‘Advantage 2: The business could ask consumers about how
its product range, quality, prices and customer services
compare to those of its competitors. The business can use
this information to redesign all the elements of its marketing
mix, including product features and prices, to improve its
competitiveness’.
The second question follows exactly the same format
but is allocated 8 marks. This means that that your
explanation or discussion of each response will need
to be more detailed.
These types of question require you to demonstrate your
skills of application, analysis and evaluation. Your answer
should identify at least two reasons for and two reasons
against the proposal and give short explanations of each
one. For example, one reason in support of the proposal
might include: ‘Spending more on health and safety may
increase costs initially but should reduce accidents and
improve employee’s job satisfaction. This could help to
improve their productivity, lower unit costs and improve
profits in the long run’.
Based on the reasons or arguments you have written
you must then decide whether or not you agree with the
proposal and state why. The reasons for your decision must
be given. For example, a good conclusion might include:
‘I do think it is sensible for the company to take actions to
improve health and safety in its factory. This will reduce staff
turnover and recruitment costs and make the factory a more
attractive place to work. However, It may not have to spend
a lot of money doing so. For example, the company could
simply communicate better with it workers on health and
safety procedures and use on-the-job training to improve
the way they work’.
Like ‘Do you think...’ type questions any questions that
ask you consider or recommend different actions a
business could take in response to changes in the business
environment or to solve a business problem requires you
to clearly demonstrate your advanced business skills. You
can do this by identifying and explaining the advantages
and disadvantages of each method or option and by using
examples or information provided in the examination paper
to illustrate.
Finally, you need to weigh up all the advantages and
disadvantages you have provided and decide which method or
option you think is best or which one you would recommend in
the business situation. As before, you will need to give reasons
for your choice.
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Complete Business Studies also contains a CD with sample answers to all
activities and additional materials to support your learning and success
Assessment questions
A range of exam-style assessment questions to
support each Part of the book.
‘Business Buzzword’ dictionary
A comprehensive glossary explaining business
terms, concepts and vocabulary covered in this book
and used in the examinations.
Quick revision summaries
Check that you have covered all the essentials by
printing out these handy summaries and ticking off
all the business concepts and topics you are
confident about. Ideal for last minute revision.
Interactive revision questions
Quickly test your knowledge and understanding
with 120 interactive multiple choice questions
with answers.
© OUP: this may be reproduced for class use solely for the purchaser’s institute
Introduction
Practice examination papers
An extensive range of exam-style questions and real
Cambridge past paper questions for the most
effective practice and revision. Why not try them
under exam conditions?!
Answers to all activities and exam questions
The CD contains detailed sample answers to all the
activities, exam preparation and assessment
questions included in the book so that you can
check, enlarge and reinforce your understanding as
you progress through the course.
Good luck with your studies and exams!
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