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IGCSE Business Studies · 0450
Cambridge IGCSE · 0450
145 questions
Business Studies
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Understanding business activity
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Paper 2
Paper 2 Case Study — Alpine Frames (handmade bicycles)
8 Q
Explanation
8 marks
Explain two reasons why customers might buy from AF rather than from one of its competitors.
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Explanation
8 marks
Explain two benefits of AF having a short chain of command.
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Explanation
8 marks
AF currently promotes its bicycles in cycling magazines. Nadia is considering social media instead. Explain four advantages to AF of promoting its ...
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Explanation
8 marks
Explain one way in which each of the following AF stakeholder groups could use the financial information in Appendix 3. Owners: Employees: Supplier...
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Evaluation
12 marks
Consider the opportunities and threats of globalisation for Alpine Frames. Are the threats likely to be greater than the opportunities for AF? Just...
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Evaluation
12 marks
Nadia's sister and brother will join the business as investors. Weigh up the advantages and disadvantages of the two forms of business organisation...
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Evaluation
12 marks
Using Appendix 2 and other information, examine the two bicycles Alpine Frames is considering making. Which one should Nadia choose? Support your r...
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Evaluation
12 marks
Alpine Frames must train its 4 new employees. Weigh up the advantages and disadvantages of the two approaches below, and recommend the one Nadia sh...
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Paper 2
Paper 2 Case Study — CasaLux (luxury kitchen appliances)
8 Q
Explanation
8 marks
CL depends on working capital day to day. Explain two reasons why it matters to the business.
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Explanation
8 marks
Explain two advantages and two disadvantages to CL of using primary market research.
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Explanation
8 marks
CL's managers must inform employees about the expansion plans. Explain two factors they should take into account when choosing how to communicate t...
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Explanation
8 marks
Explain two advantages and two disadvantages to CL of being a private limited company.
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Evaluation
12 marks
Consider the advantages and disadvantages of the two options CL could use to distribute its new product range in country P. Which channel of distri...
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Evaluation
12 marks
Consider the following three economies of scale for CL: Financial, Purchasing and Managerial. Which economy of scale is likely to have benefited CL...
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Evaluation
12 marks
CL intends to build its new factory in country Q. Using Appendix 2 and other information, weigh up the benefits and the drawbacks of this decision ...
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Evaluation
12 marks
Using Appendix 1 and other information, consider the three supervisors that CL could make redundant. Which supervisor should CL choose? Justify you...
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Paper 2
Paper 2 Case Study — CG (low-cost glass tumbler and jug manufacturer)
8 Q
Explanation
8 marks
Explain four roles of packaging for a product.
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Explanation
8 marks
Explain two reasons why it is important for CG to train its employees.
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Explanation
8 marks
Explain two advantages to CG of introducing lean production.
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Explanation
8 marks
Explain four ways in which the size of CG could be measured.
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Evaluation
12 marks
Using Appendix 3 and other information, compare the two new products CG could make. Which one should CG choose? Justify your answer with suitable c...
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Evaluation
12 marks
Using Appendix 1 and other information, consider the two sites below for CG's second factory. Which site should CG choose? Justify your answer. - ...
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Evaluation
12 marks
CG's marketing director could use three methods of primary market research for the new product. Consider each method below and recommend the one CG...
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Evaluation
12 marks
Consider the following two ways in which CG could become a more ethical business. Which is likely to be the better way for CG? Justify your answer....
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Paper 2
Paper 2 Case Study — Longreach Beds (extra-long beds and mattresses for tall people)
8 Q
Explanation
8 marks
LB divides production so that each of its workers does one job. Explain two advantages to LB of this specialisation (division of labour).
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Explanation
8 marks
Explain two advantages and two disadvantages to a business when its managers delegate tasks.
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Explanation
8 marks
Explain two ways in which the law controlling marketing could affect LB.
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Explanation
8 marks
Explain two advantages and two disadvantages to LB of making its products in batches.
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Evaluation
12 marks
Using Appendix 3 and other information, compare the financial position of LB and of its main rival. Which of the two businesses was in the stronger...
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Evaluation
12 marks
LB must fill the post of production manager for its second factory. Discuss the advantages and disadvantages to LB of recruiting internally and of ...
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Evaluation
12 marks
Discuss the advantages and disadvantages to LB of selling only to its niche market compared with selling to the mass market. Should LB move into th...
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Evaluation
12 marks
Using Appendix 2 and other information, discuss the two options below for helping LB contribute to sustainable development. Which option should LB ...
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Paper 2
Paper 2 Case Study — SS (bespoke tailored suits)
8 Q
Explanation
8 marks
Marco has written a business plan for the third shop. Explain four ways that plan could be of use to him.
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Explanation
8 marks
Explain two advantages and two disadvantages to SS of operating in a niche market.
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Explanation
8 marks
Explain two reasons why SS uses job production.
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Explanation
8 marks
Explain two reasons why maintaining high quality matters so much to a bespoke tailor such as SS.
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Evaluation
12 marks
Using Appendix 1 and other information, examine the three marketing mix elements proposed for SS's new shop. Which of them is likely to matter most...
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Evaluation
12 marks
Using Appendix 2 and other information, consider the following two ways SS could contribute to sustainable development. Which way should Marco choo...
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Evaluation
12 marks
Marco needs to place an urgent order with a supplier. Consider the two methods below and recommend the one he should use. Justify your answer. - T...
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Evaluation
12 marks
Consider the following two sources of finance that could be used for working capital when SS's new shop opens. Which would be the best source for M...
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Paper 2
Paper 2 Case Study — StrideUp (sports footwear shop)
8 Q
Explanation
8 marks
Explain four characteristics of a successful entrepreneur.
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Explanation
8 marks
Priya's business plan includes the two sections below. Explain how each section could help her as she starts SU. Section 1: market research. Sectio...
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Explanation
8 marks
Country Z is entering the boom stage of the business cycle. Explain two ways this is likely to affect SU.
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Explanation
8 marks
Explain four legal controls over employment that could benefit the people who work at SU.
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Evaluation
12 marks
Consider the following two methods Priya could use to motivate SU's employees. Which method should Priya use? Justify your answer. Option 1: commis...
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Evaluation
12 marks
Priya could finance SU's shop equipment in three ways. Consider the advantages and disadvantages of each source. Which source should she use? Justi...
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Evaluation
12 marks
Using Appendix 3 and other information, consider the two ranges SU could stock when it opens. Which product range should Priya choose? Justify your...
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Evaluation
12 marks
Using Appendix 1 and other information, consider the two marketing-mix elements suggested for SU. Would each be a suitable choice for Priya's new s...
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