IGCSE Business Studies Paper 1 Exam (2022-2024)

BUSINESS STUDIES Paper 1 2022-2024 COMPLETED m22 s22 v1 s22 v2 s22 v3 w22 v1 w22 v2 w22 v3 m23 s23 v1 s23 v2 s23 v3 w23 v1 w23 v2 w23 v3 m24 s24 v1 s24 v2 s24 v3 w24 v1 w24 v2 w24 v3 ™ Cambridge IGCSE Paper 1 Short Answer and Data Response 0450/12 February/March 2022 1 hour 30 minutes You must answer on the question paper. No additional materials are needed. INSTRUCTIONS • Answer all questions. • Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs. • Write your name, centre number and candidate number in the boxes at the top of the page. • Write your answer to each question in the space provided. • Do not use an erasable pen or correction fluid. • Do not write on any bar codes. • You may use a calculator. m INFORMATION • The total mark for this paper is 80. • The number of marks for each question or part question is shown in brackets [ ]. w .e x [Turn over w 03_0450_12_2022_1.19 © UCLES 2022 am -m at e. co This document has 12 pages. Any blank pages are indicated. w *7067409899* BUSINESS STUDIES 2 1 CXN manufactures glass bottles using flow production. The business has a number of stakeholder groups including its 130 employees. CXN has benefitted from globalisation. Its products are exported to 39 countries. The Managing Director knows that depreciation of an exchange rate can affect business activity. She thinks all manufacturing businesses should contribute to sustainable development. (a) Identify two reasons for globalisation. Reason 1: ......................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... [2] (b) Define ‘depreciation of an exchange rate‘. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (c) Outline one possible objective for each of the following stakeholder groups of CXN. Government: ..................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Employees: ....................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 03_0450_12_2022_1.19 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 3 (d) Explain one advantage and one disadvantage to CXN of using flow production. Advantage: ....................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Disadvantage: ................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think using renewable energy is the best way for a manufacturing business to contribute to sustainable development? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w .e x [Turn over w 03_0450_12_2022_1.19 w © UCLES 2022 am -m at e. co ........................................................................................................................................... 4 2 Nancy wants to be an entrepreneur. She has analysed market research data and decided to start up a book shop. Nancy has identified a suitable location and prepared a business plan. Nancy is calculating her total costs. She will use this information to help her complete a break-even chart as shown in Figure 2.1. Nancy is also considering using e-commerce. Break-even chart for Nancy’s new business X costs and revenue $ total costs Y break-even current level output of output output (units) Fig. 2.1 (a) Identify X and Y. X: ...................................................................................................................................... Y: ...................................................................................................................................... [2] (b) Define ‘total cost’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] w w .e x 03_0450_12_2022_1.19 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 5 (c) Identify four factors a service business should consider when deciding on a suitable location. Factor 1: ........................................................................................................................... ........................................................................................................................................... Factor 2: ........................................................................................................................... ........................................................................................................................................... Factor 3: ........................................................................................................................... ........................................................................................................................................... Factor 4: ........................................................................................................................... ........................................................................................................................................... [4] (d) Explain two ways having a business plan could help Nancy. Way 1: ............................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] w .e x [Turn over w 03_0450_12_2022_1.19 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 6 (e) Do you think the threats of e-commerce are greater than the opportunities for a new business? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] w w .e x 03_0450_12_2022_1.19 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 7 3 D2G is a driving school. Mattan started D2G 3 years ago to teach people to drive a car. As the business has been successful Mattan plans to buy a new vehicle. He has been analysing D2G’s income statement. An extract is shown in Table 3.1. Mattan wants to understand the difference between profit and cash. He also wants to know how an increase in competition and changes in the business cycle might affect D2G. Table 3.1 Extract from D2G’s income statement for the year ending 31 December 2021 ($) Revenue 20 000 Gross profit 12 000 Profit for the year 2000 (a) State two stages of the business cycle. Stage 1: ............................................................................................................................ ........................................................................................................................................... Stage 2: ............................................................................................................................ ........................................................................................................................................... [2] (b) Calculate D2G’s gross profit margin. Show your working. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (c) Outline, with reference to D2G, the difference between profit and cash. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m ........................................................................................................................................... w .e x -m [Turn over w 03_0450_12_2022_1.19 w © UCLES 2022 [4] am ........................................................................................................................................... at e. co ........................................................................................................................................... 8 (d) Explain two ways D2G might respond to an increase in competition. Way 1: ............................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think leasing is the best source of finance for a small business to use for a new vehicle? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... co [6] w w .e x 03_0450_12_2022_1.19 w © UCLES 2022 am -m at e. ........................................................................................................................................... m ........................................................................................................................................... 9 4 WTB is a private limited company. It manufactures breakfast cereals. WTB has 600 production workers in its factory. Many of its employees are part-time. All employees receive training and managers use delegation. The Human Resources Director is interested in using motivational theories to help improve employee motivation. The directors plan to expand the business and are considering whether to convert WTB into a public limited company. (a) Define ‘delegation’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two motivational theories. Theory 1: .......................................................................................................................... ........................................................................................................................................... Theory 2: .......................................................................................................................... ........................................................................................................................................... [2] (c) Outline two benefits to WTB of having part-time employees. Benefit 1: .......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Benefit 2: .......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w .e x [Turn over w 03_0450_12_2022_1.19 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 10 (d) Explain two reasons why training might be important to WTB. Reason 1: ......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think a public limited company is a better form of business organisation for a growing business than a private limited company? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w w .e x 03_0450_12_2022_1.19 w © UCLES 2022 am -m at e. co ........................................................................................................................................... 12 BLANK PAGE co e. at To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. m Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. w w .e x 03_0450_12_2022_1.19 w © UCLES 2022 am -m Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. 12 BLANK PAGE co e. at To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. m Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. w w .e x 03_0450_12_2022_1.19 w © UCLES 2022 am -m Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. ™ Cambridge IGCSE Paper 1 Short Answer and Data Response 0450/11 May/June 2022 1 hour 30 minutes You must answer on the question paper. No additional materials are needed. INSTRUCTIONS • Answer all questions. • Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs. • Write your name, centre number and candidate number in the boxes at the top of the page. • Write your answer to each question in the space provided. • Do not use an erasable pen or correction fluid. • Do not write on any bar codes. • You may use a calculator. m INFORMATION • The total mark for this paper is 80. • The number of marks for each question or part question is shown in brackets [ ]. w .e x [Turn over w 06_0450_11_2022_1.13 © UCLES 2022 am -m at e. co This document has 12 pages. Any blank pages are indicated. w *3386483180* BUSINESS STUDIES 2 1 Pamela is a successful entrepreneur. She is the owner of a gift shop selling celebration cards, toys and candy (sweets). When Pamela started her business 30 years ago she had no help to manage the shop. She now has 5 employees. Pamela knows maintaining customer loyalty is important. She uses competitive pricing. Most of her marketing budget is spent on sales promotion. Pamela does not use e-commerce. (a) Define ‘competitive pricing’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Define ‘marketing budget’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (c) Outline two possible threats to Pamela’s business of using e-commerce. Threat 1: ........................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Threat 2: ........................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 06_0450_11_2022_1.13 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 3 (d) Explain two methods Pamela’s business can use to maintain customer loyalty. Method 1: .......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Method 2: .......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think being a risk-taker is a more important characteristic of a successful entrepreneur than being creative? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w .e x [Turn over w 06_0450_11_2022_1.13 w © UCLES 2022 am -m at e. co ........................................................................................................................................... 4 2 CTF is a public limited company. It manufactures beds using batch production. The Operations Director is using break-even analysis to calculate the margin of safety for children’s beds. An extract from CTF’s output data is shown in Table 2.1. The Operations Director wants to know how an increase in inflation might affect CTF. She knows there are many environmental pressures that a manufacturing business could respond to. Table 2.1 Extract from CTF’s output data (children’s beds per month) Break-even output 14 000 Current level of output 18 000 Maximum factory output 25 000 (a) Define ‘public limited company’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Calculate the margin of safety for CTF’s children’s beds. Show your working. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (c) Outline two ways an increase in inflation might affect CTF. Way 1: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... co [4] w w .e x 06_0450_11_2022_1.13 w © UCLES 2022 am -m at e. ........................................................................................................................................... m ........................................................................................................................................... 5 (d) Explain two possible advantages to CTF of using batch production. Advantage 1: .................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Advantage 2: .................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think manufacturing businesses should always respond to environmental pressures? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w .e x [Turn over w 06_0450_11_2022_1.13 w © UCLES 2022 am -m at e. co ........................................................................................................................................... 6 3 VCG manufactures high-quality briefcases and travel bags. VCG has 50 skilled production workers in its factory. VCG is planning to expand by building a second factory. Different locations are being considered. The Managing Director is reviewing VCG’s financial statements. An extract is shown in Table 3.1. Both internal and external stakeholder groups of VCG are interested in this information. Table 3.1 Extract from VCG’s 2021 financial statements ($) Revenue 2 000 000 Current assets 300 000 Current liabilities 250 000 Shareholders’ equity (funds) 800 000 (a) Define ‘shareholders’ equity’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two financial statements a public limited company is legally required to publish each year. Financial statement 1: ...................................................................................................... ........................................................................................................................................... Financial statement 2: ...................................................................................................... ........................................................................................................................................... [2] (c) State whether each of the following are classified as a current asset or a current liability. Overdraft: .......................................................................................................................... ........................................................................................................................................... Trade receivables: ............................................................................................................ ........................................................................................................................................... Trade payables: ................................................................................................................ m ........................................................................................................................................... w w .e x 06_0450_11_2022_1.13 w © UCLES 2022 -m [4] am ........................................................................................................................................... at e. co Cash in bank: .................................................................................................................... 7 (d) Explain one way each of the following stakeholder groups might use VCG’s accounts: Shareholders: ................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Suppliers: .......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think access to labour is the most important factor for a manufacturing business to consider when deciding where to locate a new factory? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w .e x [Turn over w 06_0450_11_2022_1.13 w © UCLES 2022 am -m at e. co ........................................................................................................................................... 8 4 MBH is a business organisation in the public sector. It controls 5 hospitals and has 5600 employees including 440 doctors. External recruitment is used when recruiting skilled employees. The Human Resources Director uses ideas from Herzberg’s theory to improve employee motivation. He is worried about communication barriers within MBH. The business has a tall organisational structure and a long chain of command. Most of MBH’s internal communication is by email and phone calls. (a) Identify two objectives for a business organisation in the public sector. Objective 1: ....................................................................................................................... ........................................................................................................................................... Objective 2: ....................................................................................................................... ........................................................................................................................................... [2] (b) Define ‘chain of command’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (c) Outline two ways MBH can use ideas from Herzberg’s theory to motivate its employees. Way 1: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 06_0450_11_2022_1.13 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 9 (d) Explain how MBH might reduce or remove each of the following communication barriers: Messages lost: .................................................................................................................. ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Use of jargon: ................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think an organisation should always use external recruitment when recruiting skilled employees? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w w .e x 06_0450_11_2022_1.13 w © UCLES 2022 am -m at e. co ........................................................................................................................................... 12 BLANK PAGE co e. at To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. m Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. w w .e x 06_0450_11_2022_1.13 w © UCLES 2022 am -m Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. ™ Cambridge IGCSE Paper 1 Short Answer and Data Response 0450/12 May/June 2022 1 hour 30 minutes You must answer on the question paper. No additional materials are needed. INSTRUCTIONS • Answer all questions. • Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs. • Write your name, centre number and candidate number in the boxes at the top of the page. • Write your answer to each question in the space provided. • Do not use an erasable pen or correction fluid. • Do not write on any bar codes. • You may use a calculator. m INFORMATION • The total mark for this paper is 80. • The number of marks for each question or part question is shown in brackets [ ]. w .e x [Turn over w 06_0450_12_2022_1.17 © UCLES 2022 am -m at e. co This document has 12 pages. Any blank pages are indicated. w *6304921481* BUSINESS STUDIES 2 1 AHG is an established business as it has been operating for a long time. It sells garden products including plants and flowers. AHG uses competitive pricing. The business has 4 managers and 30 other employees. All AHG’s managers use delegation. The Finance Manager is analysing AHG’s statement of financial position as she is interested in its liquidity. An extract is shown in Table 1.1. Table 1.1 Extract from AHG’s statement of financial position at 30 March 2022 ($000) Non-current assets 800 Current assets 660 Current liabilities 600 (a) Define ‘current liabilities’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two examples of non-current assets. Example 1: ........................................................................................................................ ........................................................................................................................................... Example 2: ........................................................................................................................ ........................................................................................................................................... [2] (c) Outline two possible reasons why liquidity is important to AHG. Reason 1: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [4] w w .e x 06_0450_12_2022_1.17 w © UCLES 2022 am -m at e. co ........................................................................................................................................... 3 (d) Explain two advantages to AHG of its managers using delegation. Advantage 1: .................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Advantage 2: .................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think competitive pricing is the best method for an established business to use? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w .e x [Turn over w 06_0450_12_2022_1.17 w © UCLES 2022 am -m at e. co ........................................................................................................................................... 4 2 RWB manufactures buses.1200 people work in its factory. All employees receive off-the-job training. RWB uses financial rewards to motivate its employees. Last year RWB made a $1.7 million loss. The Managing Director said: ‘There are many external influences affecting our business, including changes in the level of unemployment and new legal controls over business activities which affect the environment.’ (a) Define ‘off-the-job training’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two reasons (other than financial) why people work. Reason 1: ......................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... [2] (c) Outline two methods of financial rewards RWB might use to motivate its employees. Method 1: .......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Method 2: .......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 06_0450_12_2022_1.17 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 5 (d) Explain two ways RWB might be affected by new legal controls over business activities which affect the environment. Way 1: ............................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think a reduction in the level of unemployment always benefits businesses? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... e. [6] w .e x [Turn over w 06_0450_12_2022_1.17 w © UCLES 2022 am -m at ........................................................................................................................................... co m ........................................................................................................................................... 6 3 CHW manufactures electrical products including cameras. The business is developing new products. The Managing Director knows that the stage of the product life cycle can influence CHW’s marketing decisions about promotion. He is analysing data for one of its products. An extract is shown in Table 3.1. The business would also like to introduce flow production into the factory. Table 3.1 Extract from CHW’s data for one type of camera (2021) Selling price per unit ($) 120 Variable cost per unit ($) 40 Fixed costs ($) 200 000 Margin of safety (units) 500 (a) Identify one benefit and one cost to a business of developing new products. Benefit: ............................................................................................................................. ........................................................................................................................................... Cost: ................................................................................................................................. ........................................................................................................................................... [2] (b) Calculate the break-even level of output for 2021. Show your working. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (c) Outline two ways CHW could increase its margin of safety. Way 1: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 06_0450_12_2022_1.17 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 7 (d) Explain two ways in which the stage of the product life cycle might affect CHW’s marketing decisions about promotion. Way 1: ............................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think flow production is the best method of production for a manufacturing business to use? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... e. [6] w .e x [Turn over w 06_0450_12_2022_1.17 w © UCLES 2022 am -m at ........................................................................................................................................... co m ........................................................................................................................................... 8 4 Tom wants to leave his job to become an entrepreneur. He and his sister plan to start a window cleaning business. Tom has been told that new businesses are at a greater risk of failure than established businesses. Tom has to decide whether a partnership is a suitable form of business organisation for the new business. He has calculated the business will need $700 as start-up capital. Tom knows that every decision he makes will have an opportunity cost. (a) Define ‘entrepreneur’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Define ‘opportunity cost’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (c) Identify four reasons why a new business might be at greater risk of failure than an established business. Reason 1: ......................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... Reason 3: ......................................................................................................................... ........................................................................................................................................... Reason 4: ......................................................................................................................... [4] w w .e x 06_0450_12_2022_1.17 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 9 (d) Explain two suitable sources of start-up capital Tom’s business might use. Source 1: .......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Source 2: .......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think a partnership is the best form of business organisation for a new business? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w w .e x 06_0450_12_2022_1.17 w © UCLES 2022 am -m at e. co ........................................................................................................................................... 12 BLANK PAGE co e. at To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. m Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. w w .e x 06_0450_12_2022_1.17 w © UCLES 2022 am -m Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. ™ Cambridge IGCSE Paper 1 Short Answer and Data Response 0450/13 May/June 2022 1 hour 30 minutes You must answer on the question paper. No additional materials are needed. INSTRUCTIONS • Answer all questions. • Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs. • Write your name, centre number and candidate number in the boxes at the top of the page. • Write your answer to each question in the space provided. • Do not use an erasable pen or correction fluid. • Do not write on any bar codes. • You may use a calculator. m INFORMATION • The total mark for this paper is 80. • The number of marks for each question or part question is shown in brackets [ ]. w .e x [Turn over w 06_0450_13_2022_1.15 © UCLES 2022 am -m at e. co This document has 12 pages. Any blank pages are indicated. w *6660195349* BUSINESS STUDIES 2 1 MTD manufactures specialist cleaning products including soap. Batch production is used. The business uses just-in-time inventory control. MTD took 18 months to develop its latest environmentally friendly cleaning product. The Marketing Manager has to decide on the packaging and method of promotion for this new product. She said: ‘All our stakeholders, including pressure groups, are important. MTD wants to contribute to sustainable development.’ (a) Define ‘pressure group’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two features of batch production. Feature 1: ......................................................................................................................... ........................................................................................................................................... Feature 2: ......................................................................................................................... ........................................................................................................................................... [2] (c) Outline two factors MTD should consider when deciding on the packaging for its new product. Factor 1: ........................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Factor 2: ........................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 06_0450_13_2022_1.15 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 3 (d) Explain two possible advantages to MTD of using just-in-time inventory control. Advantage 1: .................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Advantage 2: .................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think using social media is the best way for a business to promote a new product? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w .e x [Turn over w 06_0450_13_2022_1.15 w © UCLES 2022 am -m at e. co ........................................................................................................................................... 4 2 TJM is a private limited company. It is a food retailer and has 450 shops. In 2021 TJM’s revenue increased by $500 million. The Finance Director is analysing TJM’s financial statements. An extract is shown in Table 2.1. The directors are planning to expand TJM by opening 20 new shops. TJM will have to carry out a recruitment and selection process for 400 new employees. Table 2.1 Extract from TJM’s financial statements for 2021 ($m) Non-current assets 400 Current assets 300 Current liabilities 240 Profit for the year 200 (a) Define ‘revenue’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Calculate working capital. Show your working. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (c) Outline two advantages of TJM being a private limited company. Advantage 1: .................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Advantage 2: .................................................................................................................... ........................................................................................................................................... e. [4] w w .e x 06_0450_13_2022_1.15 w © UCLES 2022 am -m at ........................................................................................................................................... co m ........................................................................................................................................... 5 (d) Explain two possible reasons why profit might be important to TJM. Reason 1: ......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think an interview is the best way for a large business to select new employees? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w .e x [Turn over w 06_0450_13_2022_1.15 w © UCLES 2022 am -m at e. co ........................................................................................................................................... 6 3 Gareth is planning to start a car washing business using government support. He is analysing market research data to help him make important decisions about his business. Extracts from this data are shown in Figure 3.1 and Figure 3.2. Gareth said: ‘I will need to set business objectives.’ He plans to keep his business small. Gareth is worried about the possible effects of higher taxes. (a) Identify two reasons why businesses need objectives. Reason 1: ......................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... [2] (b) Identify two possible reasons why an owner might want their business to remain small. Reason 1: ......................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... [2] w w .e x 06_0450_13_2022_1.15 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 7 (c) Outline two ways higher taxes might affect Gareth’s business. Way 1: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] (d) Explain how the data shown in Figure 3.1 and Figure 3.2 could be useful to Gareth. Figure 3.1: ........................................................................................................................ ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Figure 3.2: ........................................................................................................................ ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] w .e x [Turn over w 06_0450_13_2022_1.15 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 8 (e) Do you think offering financial help, such as grants, is the best way for a government to support business start-ups? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] w w .e x 06_0450_13_2022_1.15 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 9 4 BCZ is a multinational company which operates in 12 countries. It manufactures cement, a building material used by construction companies, so quality assurance is important. Making cement creates external costs. One of BCZ’s factories is located in country X. The government of country X plans to introduce new legal controls that will reduce the maximum number of working hours from 45 to 35 hours per week. (a) Define ‘external cost’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) State two responsibilities of a director. Responsibility 1: ............................................................................................................... ........................................................................................................................................... Responsibility 2: ............................................................................................................... ........................................................................................................................................... [2] (c) Identify four potential benefits to a country’s economy of a multinational company locating there. Benefit 1: .......................................................................................................................... ........................................................................................................................................... Benefit 2: .......................................................................................................................... ........................................................................................................................................... Benefit 3: .......................................................................................................................... ........................................................................................................................................... Benefit 4: .......................................................................................................................... [4] w .e x [Turn over w 06_0450_13_2022_1.15 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 10 (d) Explain one possible effect on BCZ and one possible effect on its employees of the new legal controls that will reduce the maximum number of working hours. Effect on BCZ: .................................................................................................................. ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Effect on BCZ’s employees: ............................................................................................. ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think it is better for a large manufacturer to use quality assurance rather than quality control? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... at [6] w w .e x 06_0450_13_2022_1.15 w © UCLES 2022 am -m ........................................................................................................................................... e. co m ........................................................................................................................................... 12 BLANK PAGE co e. at To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. m Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. w w .e x 06_0450_13_2022_1.15 w © UCLES 2022 am -m Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. ™ Cambridge IGCSE Paper 1 Short Answer and Data Response 0450/11 October/November 2022 1 hour 30 minutes You must answer on the question paper. No additional materials are needed. INSTRUCTIONS • Answer all questions. • Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs. • Write your name, centre number and candidate number in the boxes at the top of the page. • Write your answer to each question in the space provided. • Do not use an erasable pen or correction fluid. • Do not write on any bar codes. • You may use a calculator. m INFORMATION • The total mark for this paper is 80. • The number of marks for each question or part question is shown in brackets [ ]. w .e x [Turn over w 11_0450_11_2022_1.15 © UCLES 2022 am -m at e. co This document has 12 pages. Any blank pages are indicated. w *3292223075* BUSINESS STUDIES 2 1 SSG manufactures mobile (cell) phones using batch production. Quality control is important. SSG has 130 employees who all receive on-the-job training. The Marketing Manager is analysing cost and output data for product X. An extract is shown in Table 1.1. As product X is in the maturity stage of the product life cycle SSG is considering possible extension strategies. Table 1.1 Extract from SSG’s cost and output data for product X Rent and other expenses per month $300 000 Variable cost per unit $80 Output per month 12 000 (a) Define ‘on-the-job training’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Calculate total variable cost per month. Show your working. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (c) Identify four factors a business should consider when deciding which method of production to use. Factor 1: ........................................................................................................................... ........................................................................................................................................... Factor 2: ........................................................................................................................... ........................................................................................................................................... Factor 3: ........................................................................................................................... ........................................................................................................................................... co [4] w w .e x 11_0450_11_2022_1.15 w © UCLES 2022 am -m at e. ........................................................................................................................................... m Factor 4: ........................................................................................................................... 3 (d) Explain one advantage and one disadvantage to SSG of using quality control. Advantage: ....................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Disadvantage: ................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think adding new features to a product is the best extension strategy for a manufacturing business to use? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w .e x [Turn over w 11_0450_11_2022_1.15 w © UCLES 2022 am -m at e. co ........................................................................................................................................... 4 2 DNG provides electricity to 16 million customers. It is a limited company which means DNG’s shareholders benefit from limited liability. DNG is planning to stop using coal to produce its electricity. Pressure groups had an influence on this decision. The Managing Director knows there will be an opportunity cost to making this change. She is considering the best way to communicate this important information to DNG’s 6500 employees. (a) Define ‘opportunity cost’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two limitations of using the number of employees to measure the size of a business. Limitation 1: ...................................................................................................................... ........................................................................................................................................... Limitation 2: ...................................................................................................................... ........................................................................................................................................... [2] (c) Outline how having limited liability might benefit DNG’s shareholders. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 11_0450_11_2022_1.15 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 5 (d) Explain two ways a pressure group might influence DNG’s decisions. Way 1: ............................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Explain two methods of internal communication a large business could use to share important information with its employees. Justify which method should be used. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w .e x [Turn over w 11_0450_11_2022_1.15 w © UCLES 2022 am -m at e. co ........................................................................................................................................... 6 3 CPK operates 5 sports clubs. Each club offers a range of activities including gym and yoga classes. CPK uses job enrichment to keep its 60 employees well-motivated. Having the right marketing mix is important to CPK’s success. The Finance Director is analysing CPK’s financial statements. An extract is shown in Table 3.1. He wants to know how an increase in taxation might affect CPK’s business. Table 3.1 Extract from CPK’s financial statements 2020 2021 Current ratio 1.6 1.3 Profit margin 12% 10% Non-current assets $2m $2m (a) Define ‘non-current assets’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) State two elements of the marketing mix. Element 1: ........................................................................................................................ ........................................................................................................................................... Element 2: ........................................................................................................................ ........................................................................................................................................... [2] (c) Outline two ways CPK might be affected by an increase in taxation. Way 1: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... m ........................................................................................................................................... w w .e x 11_0450_11_2022_1.15 w © UCLES 2022 -m [4] am ........................................................................................................................................... at e. co ........................................................................................................................................... 7 (d) Explain one possible effect on CPK of the change in each of the following ratios as shown in Table 3.1: Change in current ratio: .................................................................................................... ........................................................................................................................................... Explanation of effect on CPK: ........................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Change in profit margin: ................................................................................................... ........................................................................................................................................... Explanation of effect on CPK: ........................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think job enrichment is a better way for a business to motivate its employees than profit sharing? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... e. [6] w .e x [Turn over w 11_0450_11_2022_1.15 w © UCLES 2022 am -m at ........................................................................................................................................... co m ........................................................................................................................................... 8 4 Following the end of a recession in country X, Beena wants to start up a hairdressing business. One option is to purchase a franchise from an established hairdressing business. Beena has $800 in savings and knows having enough working capital will be important for her business. She plans to use market research to help her decision-making. Beena knows there are many ways to segment a market. (a) Define ‘recession’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two ways of segmenting a market. Way 1: ............................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... [2] (c) Outline two reasons why having enough working capital might be important for Beena’s business. Reason 1: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 11_0450_11_2022_1.15 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 9 (d) Explain two possible advantages to Beena of buying a franchise. Advantage 1: .................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Advantage 2: .................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think it is always better for a start-up business to use primary market research, rather than secondary market research, when making decisions? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w w .e x 11_0450_11_2022_1.15 w © UCLES 2022 am -m at e. co ........................................................................................................................................... 12 BLANK PAGE co e. at To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. m Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. w w .e x 11_0450_11_2022_1.15 w © UCLES 2022 am -m Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. ™ Cambridge IGCSE Paper 1 Short Answer and Data Response 0450/12 October/November 2022 1 hour 30 minutes You must answer on the question paper. No additional materials are needed. INSTRUCTIONS • Answer all questions. • Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs. • Write your name, centre number and candidate number in the boxes at the top of the page. • Write your answer to each question in the space provided. • Do not use an erasable pen or correction fluid. • Do not write on any bar codes. • You may use a calculator. m INFORMATION • The total mark for this paper is 80. • The number of marks for each question or part question is shown in brackets [ ]. w .e x [Turn over w 11_0450_12_2022_1.13 © UCLES 2022 am -m at e. co This document has 12 pages. Any blank pages are indicated. w *0358060406* BUSINESS STUDIES 2 1 EQR owns 150 cafes. It sells a range of drinks including coffee. Being ethical is important to EQR. The Managing Director has been analysing EQR’s statement of financial position. The business has the objective to increase its 6% market share. The Managing Director plans to grow the business by selling franchises for $85 000. She is also considering ways to increase added value. (a) Define ‘market share’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Define ‘statement of financial position’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (c) Outline two ways EQR could increase added value. Way 1: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 11_0450_12_2022_1.13 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 3 (d) Explain two advantages to EQR of selling franchises as a way to grow its business. Advantage 1: .................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Advantage 2: .................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think a business being ethical will always lead to lower profits? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] w .e x [Turn over w 11_0450_12_2022_1.13 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 4 2 Kemala makes high-quality beauty products. Demand for her best-selling hand cream is price inelastic. She advertises her products in specialist beauty magazines. Kemala is analysing her income statement. An extract is shown in Table 2.1. She said: ‘When I started my business, I did not understand why cash is important’. Table 2.1 Extract from Kemala’s income statement 2021 ($000) Revenue 480 Gross profit 192 Profit for the year 72 (a) Define ‘revenue’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Calculate Kemala’s profit margin. Show your working. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (c) Outline two reasons why cash is important for Kemala’s business. Reason 1: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... e. [4] w w .e x 11_0450_12_2022_1.13 w © UCLES 2022 am -m at ........................................................................................................................................... co m ........................................................................................................................................... 5 (d) Explain two possible reasons why demand for Kemala’s best-selling product is price inelastic. Reason 1: ......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think advertising in specialist magazines is the best way for a business to promote high-quality products? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... co [6] w .e x [Turn over w 11_0450_12_2022_1.13 w © UCLES 2022 am -m at e. ........................................................................................................................................... m ........................................................................................................................................... 6 3 DBG is a construction company. It builds hospitals, roads and schools. DBG has 2000 employees. Managers use a democratic leadership style. They know effective internal communication is important. DBG plans to change its organisational structure.This will lead to some employees being made redundant. The Managing Director has to decide how changes in government spending might affect business activity. (a) Identify two reasons why effective internal communication is important for a business. Reason 1: ......................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... [2] (b) Define ‘organisational structure’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (c) State four factors a business should consider when deciding which employees to make redundant. Factor 1: ........................................................................................................................... ........................................................................................................................................... Factor 2: ........................................................................................................................... ........................................................................................................................................... Factor 3: ........................................................................................................................... ........................................................................................................................................... Factor 4: ........................................................................................................................... [4] w w .e x 11_0450_12_2022_1.13 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 7 (d) Explain two advantages to DBG of its managers using a democratic leadership style. Advantage 1: .................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Advantage 2: .................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think all businesses benefit from an increase in government spending? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w .e x [Turn over w 11_0450_12_2022_1.13 w © UCLES 2022 am -m at e. co ........................................................................................................................................... 8 4 TYA is a limited company which manufactures 300 000 cars a year. It has 600 employees. TYA has high fixed costs. The Managing Director wants to improve efficiency in the factory. He said: ‘Globalisation is changing how businesses operate. Many manufacturing businesses are considering whether to relocate their operations to other countries.’ (a) Define ‘globalisation’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two examples of fixed costs. Example 1: ........................................................................................................................ ........................................................................................................................................... Example 2: ........................................................................................................................ ........................................................................................................................................... [2] (c) Outline, with reference to TYA, the difference between a limited company and an unincorporated business. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 11_0450_12_2022_1.13 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 9 (d) Explain two methods TYA could use to increase efficiency. Method 1: .......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Method 2: .......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think legal controls are the most important factor for a manufacturing business to consider when deciding which country to locate its operations in? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w w .e x 11_0450_12_2022_1.13 w © UCLES 2022 am -m at e. co ........................................................................................................................................... 12 BLANK PAGE co e. at To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. m Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. w w .e x 11_0450_12_2022_1.13 w © UCLES 2022 am -m Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. ™ Cambridge IGCSE Paper 1 Short Answer and Data Response 0450/13 October/November 2022 1 hour 30 minutes You must answer on the question paper. No additional materials are needed. INSTRUCTIONS • Answer all questions. • Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs. • Write your name, centre number and candidate number in the boxes at the top of the page. • Write your answer to each question in the space provided. • Do not use an erasable pen or correction fluid. • Do not write on any bar codes. • You may use a calculator. m INFORMATION • The total mark for this paper is 80. • The number of marks for each question or part question is shown in brackets [ ]. w .e x [Turn over w 11_0450_13_2022_1.11 © UCLES 2022 am -m at e. co This document has 12 pages. Any blank pages are indicated. w *0747009801* BUSINESS STUDIES 2 1 NFF is a fishing business which catches fish and other seafood. It is in the primary sector. NFF has 6 fishing boats and 36 employees. Contributing to sustainable development is important to NFF. Jennifer, the owner, has prepared NFF’s statement of financial position. An extract is shown in Table 1.1. NFF has a high level of debt. Jennifer wants to know about internal sources of finance the business can use. Table 1.1 Extract from NFF’s statement of financial position at 30 September 2022 ($000) Trade payables 60 Trade receivables 50 Overdraft 20 Bank loan 200 (a) Define ‘primary sector’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Calculate the value of NFF’s current liabilities. Show your working. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (c) Outline two internal sources of finance NFF might use. Source 1: .......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Source 2: .......................................................................................................................... ........................................................................................................................................... e. [4] w w .e x 11_0450_13_2022_1.11 w © UCLES 2022 am -m at ........................................................................................................................................... co m ........................................................................................................................................... 3 (d) Explain two possible problems for NFF of having a high level of debt. Problem 1: ........................................................................................................................ ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Problem 2: ........................................................................................................................ ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Explain two ways a business in the primary sector might contribute to sustainable development. Which do you think is the best way? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w .e x [Turn over w 11_0450_13_2022_1.11 w © UCLES 2022 am -m at e. co ........................................................................................................................................... 4 2 GBR manufactures shoes. The method of production used means GBR can produce 18 000 pairs of shoes each week. GBR is a limited company. Its main objective is to increase profit. This objective can conflict with those of other stakeholder groups including GBR’s 450 employees. The business does not export any of its products. The directors are interested in the opportunities of globalisation for GBR. (a) Define ‘limited company’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Outline two reasons why having objectives might be important for a business. Reason 1: ......................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... [2] (c) Outline two opportunities of globalisation for GBR. Opportunity 1: ................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Opportunity 2: ................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 11_0450_13_2022_1.11 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 5 (d) Explain how one objective for each of the following stakeholder groups might conflict with GBR’s objective to increase profit. Employees’ objective: ....................................................................................................... ........................................................................................................................................... How this might conflict with GBR’s objective: ................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Suppliers’ objective: .......................................................................................................... ........................................................................................................................................... How this might conflict with GBR’s objective: ................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think the size of the market is the most important factor for a business to consider when deciding on a method of production? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] w .e x [Turn over w 11_0450_13_2022_1.11 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 6 3 MDL is a hotel which has 160 rooms. It has 600 employees and plans to recruit 20 new employees. All new employees will be offered induction training. Trade union membership will be encouraged. The Human Resources Manager knows there are many reasons why people work. He said: ‘It is difficult to find people to work at the hotel. This could be because of the stage of the business cycle.’ (a) Identify two reasons why people work. Reason 1: ......................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... [2] (b) Define ‘trade union’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (c) Identify the four stages of the business cycle. 1: ....................................................................................................................................... ........................................................................................................................................... 2: ....................................................................................................................................... ........................................................................................................................................... 3: ....................................................................................................................................... ........................................................................................................................................... 4: ....................................................................................................................................... [4] w w .e x 11_0450_13_2022_1.11 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 7 (d) Explain one benefit and one limitation for MDL of using induction training. Benefit: ............................................................................................................................. ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Limitation: ......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Explain two stages of the recruitment and selection process that businesses use. Which stage do you think is more important? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... co [6] w .e x [Turn over w 11_0450_13_2022_1.11 w © UCLES 2022 am -m at e. ........................................................................................................................................... m ........................................................................................................................................... 8 4 Caleb wants to be an entrepreneur. He plans to start up a business selling handmade furniture including tables and chairs. He will sell his products to a niche market. Having a good brand image will be important. Caleb knows there are many legal controls that can impact his marketing strategy. He is considering selling his products using e-commerce. Caleb also has to decide on a suitable location for the business. (a) Define ‘niche market’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two impacts of legal controls on marketing strategy. Impact 1: ........................................................................................................................... ........................................................................................................................................... Impact 2: ........................................................................................................................... ........................................................................................................................................... [2] (c) Outline two reasons why having a good brand image might be important for Caleb’s business. Reason 1: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 11_0450_13_2022_1.11 w © UCLES 2022 am -m at e. co m ........................................................................................................................................... 9 (d) Explain two threats to Caleb’s business of using e-commerce to sell his products. Threat 1: ........................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Threat 2: ........................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Explain two factors a service business should consider when deciding on a suitable location. Which factor do you think is more important? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... co [6] w w .e x 11_0450_13_2022_1.11 w © UCLES 2022 am -m at e. ........................................................................................................................................... m ........................................................................................................................................... 12 BLANK PAGE co e. at To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. m Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. w w .e x 11_0450_13_2022_1.11 w © UCLES 2022 am -m Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. ™ Cambridge IGCSE Paper 1 Short Answer and Data Response 0450/12 February/March 2023 1 hour 30 minutes You must answer on the question paper. No additional materials are needed. INSTRUCTIONS • Answer all questions. • Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs. • Write your name, centre number and candidate number in the boxes at the top of the page. • Write your answer to each question in the space provided. • Do not use an erasable pen or correction fluid. • Do not write on any bar codes. • You may use a calculator. m INFORMATION • The total mark for this paper is 80. • The number of marks for each question or part question is shown in brackets [ ]. w .e x [Turn over w 03_0450_12_2023_1.13 © UCLES 2023 am -m at e. co This document has 12 pages. Any blank pages are indicated. w *0444971363* BUSINESS STUDIES 2 1 HCB manufactures cars in country X. It has 200 employees working in its factory. The business has changed its method of production due to new technology. HCB’s Managing Director is considering ways to become more ethical. She is aware that other businesses in country X have started to import cars. The interest rate in country X has increased due to rising inflation. (a) Define ‘inflation’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two ways technology could change production methods. Way 1: ............................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... [2] (c) Outline two ways HCB could become more ethical. Way 1: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 03_0450_12_2023_1.13 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 3 (d) Explain two ways HCB could be affected by an increase in the interest rate in country X. Way 1: ............................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think manufacturing businesses will always benefit from the introduction of import tariffs? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w .e x [Turn over w 03_0450_12_2023_1.13 w © UCLES 2023 am -m at e. co ........................................................................................................................................... 4 2 WFH produces hats and sells them to a mass market. It holds a high level of inventory. The Managing Director is concerned about the liquidity of the business and has been analysing WFH’s financial statements. An extract is shown in Table 2.1. The Managing Director thinks that the business might fail. Other stakeholder groups might also be interested in WFH’s financial statements. Table 2.1 Extract from WFH’s financial statements ($000) 2021 2022 Current assets 60 50 Inventory 20 30 Trade receivables 25 10 Cash 15 10 Current liabilities 20 40 Profit/loss 15 (10) (a) Identify two possible causes of business failure. Cause 1: ........................................................................................................................... ........................................................................................................................................... Cause 2: ........................................................................................................................... ........................................................................................................................................... [2] (b) Calculate WFH’s acid test ratio for 2022. Show your working. Working: ........................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] w w .e x 03_0450_12_2023_1.13 w © UCLES 2023 am -m at e. co m Final answer: .................................................................................................................... 5 (c) Identify four reasons why businesses hold inventory. Reason 1: ......................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... Reason 3: ......................................................................................................................... ........................................................................................................................................... Reason 4: ......................................................................................................................... ........................................................................................................................................... [4] (d) Explain why the following two stakeholder groups might be interested in WFH’s financial statements. Employees: ....................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Suppliers: .......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] w .e x [Turn over w 03_0450_12_2023_1.13 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 6 (e) Do you think it is always better for a business to sell to a mass market? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] w w .e x 03_0450_12_2023_1.13 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 7 3 AH is an insurance business. It operates in a competitive market. AH has 1000 employees including 50 supervisors. The supervisors use an autocratic leadership style. AH currently has a 5% market share and is planning to take over a competitor. The Managing Director is considering how to communicate with AH’s employees about the takeover. There are many sources of finance available to fund business growth. (a) Identify two responsibilities of supervisors. Responsibility 1: ............................................................................................................... ........................................................................................................................................... Responsibility 2: ............................................................................................................... ........................................................................................................................................... [2] (b) Identify two methods of written communication. Method 1: .......................................................................................................................... ........................................................................................................................................... Method 2: .......................................................................................................................... ........................................................................................................................................... [2] (c) Outline two benefits to AH of taking over a competitor. Benefit 1: .......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Benefit 2: .......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w .e x [Turn over w 03_0450_12_2023_1.13 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 8 (d) Explain one advantage and one disadvantage to AH of its supervisors using an autocratic leadership style. Advantage: ....................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Disadvantage: ................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Explain two sources of finance which could be used to fund business growth. Which source of finance would be the best to use? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... at [6] w w .e x 03_0450_12_2023_1.13 w © UCLES 2023 am -m ........................................................................................................................................... e. co m ........................................................................................................................................... 9 4 Viktor is starting up a business as a photographer. He will be a sole trader. Quality control will be important. Viktor plans to use sampling when carrying out market research. There are legal controls which could affect his marketing strategy. Viktor will employ 5 photographers. He knows there are many ways to motivate employees. (a) Identify two ways legal controls could affect marketing strategy. Way 1: ............................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... [2] (b) Define ‘quality control’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (c) Outline two reasons why Viktor might use sampling when carrying out market research. Reason 1: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w .e x [Turn over w 03_0450_12_2023_1.13 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 10 (d) Explain two disadvantages to Viktor of operating as a sole trader. Disadvantage 1: ................................................................................................................ ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Disadvantage 2: ................................................................................................................ ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Explain two ways a service business could motivate its employees. Which would be the best way to use? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... co [6] w w .e x 03_0450_12_2023_1.13 w © UCLES 2023 am -m at e. ........................................................................................................................................... m ........................................................................................................................................... 12 BLANK PAGE co e. at To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. m Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. w w .e x 03_0450_12_2023_1.13 w © UCLES 2023 am -m Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. ™ Cambridge IGCSE Paper 1 Short Answer and Data Response 0450/11 May/June 2023 1 hour 30 minutes You must answer on the question paper. No additional materials are needed. INSTRUCTIONS • Answer all questions. • Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs. • Write your name, centre number and candidate number in the boxes at the top of the page. • Write your answer to each question in the space provided. • Do not use an erasable pen or correction fluid. • Do not write on any bar codes. • You may use a calculator. m INFORMATION • The total mark for this paper is 80. • The number of marks for each question or part question is shown in brackets [ ]. w .e x [Turn over w 06_0450_11_2023_1.14 © UCLES 2023 am -m at e. co This document has 12 pages. Any blank pages are indicated. w *7093880573* BUSINESS STUDIES 2 1 WLT manufactures carpets. It exports 40% of its products. Globalisation has created opportunities and threats for WLT. Its method of production allows WLT to use specialisation. All of its 60 employees understand that quality assurance is important. WLT’s directors are considering the best way to increase efficiency. (a) Define ‘specialisation’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two methods of production. Method 1: .......................................................................................................................... ........................................................................................................................................... Method 2: .......................................................................................................................... ........................................................................................................................................... [2] (c) Outline two advantages to WLT of using quality assurance. Advantage 1: .................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Advantage 2: .................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 06_0450_11_2023_1.14 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 3 (d) Explain one opportunity and one threat of globalisation for WLT. Opportunity: ...................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Threat: .............................................................................................................................. ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think improving labour skills is the best way for a manufacturing business to increase efficiency? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w .e x [Turn over w 06_0450_11_2023_1.14 w © UCLES 2023 am -m at e. co ........................................................................................................................................... 4 2 LMA is a family-owned restaurant. The business was started 20 years ago and has remained small. LMA is a partnership. The partners are considering whether LMA should become a private limited company. The Finance Manager is analysing LMA’s cash-flow forecast. An extract is shown in Table 2.1. Table 2.1 Extract from LMA’s cash-flow forecast 2023 ($000) July August September Cash inflow 420 300 330 Cash outflow 410 320 360 Net cash flow X (20) (30) Opening balance 60 70 50 Closing balance 70 50 Y (a) Identify two reasons why a business might have cash-flow problems. Reason 1: ......................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... [2] (b) Calculate X and Y. X: ...................................................................................................................................... Y: ...................................................................................................................................... [2] (c) Identify four examples of a cash inflow. Example 1: ........................................................................................................................ ........................................................................................................................................... Example 2: ........................................................................................................................ ........................................................................................................................................... Example 3: ........................................................................................................................ m ........................................................................................................................................... w w .e x 06_0450_11_2023_1.14 w © UCLES 2023 -m [4] am ........................................................................................................................................... at e. co Example 4: ........................................................................................................................ 5 (d) Explain one advantage and one disadvantage to LMA of becoming a private limited company. Advantage: ....................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Disadvantage: ................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Explain two reasons why a business might remain small. Which reason is likely to be most important? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... co [6] w .e x [Turn over w 06_0450_11_2023_1.14 w © UCLES 2023 am -m at e. ........................................................................................................................................... m ........................................................................................................................................... 6 3 DZD is a large parcel delivery business. Many of its employees work part-time. DZD’s directors are planning to expand the business and have to decide on a suitable source of finance for 20 new vehicles. DZD will also recruit 60 new employees. The Human Resources Director is preparing a job description for the new employees. She is considering using Maslow’s hierarchy of needs to increase the motivation of DZD’s employees. (a) Define ‘job description’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two levels from Maslow’s hierarchy of needs. 1: ....................................................................................................................................... ........................................................................................................................................... 2: ....................................................................................................................................... ........................................................................................................................................... [2] (c) Outline two factors DZD should consider when deciding which applicants to recruit. Factor 1: ........................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Factor 2: ........................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 06_0450_11_2023_1.14 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 7 (d) Explain two sources of finance DZD might use for the new vehicles. Source of finance 1: .......................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Source of finance 2: .......................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think a service business should only employ part-time workers? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w .e x [Turn over w 06_0450_11_2023_1.14 w © UCLES 2023 am -m at e. co ........................................................................................................................................... 8 4 NLR manufactures a range of branded skincare products including hand cream. Packaging of the products is important. Like many businesses, NLR makes use of market segmentation. The Marketing Director knows the stage of the product life cycle can influence NLR’s pricing decisions. He is analysing market research data. This shows 85% of consumers expect businesses to respond to environmental pressures. (a) Identify two factors that might affect the accuracy of market research. Factor 1: ........................................................................................................................... ........................................................................................................................................... Factor 2: ........................................................................................................................... ........................................................................................................................................... [2] (b) Identify two benefits to a business of using market segmentation. Benefit 1: .......................................................................................................................... ........................................................................................................................................... Benefit 2: .......................................................................................................................... ........................................................................................................................................... [2] (c) Outline two ways NLR might respond to environmental pressures. Way 1: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 06_0450_11_2023_1.14 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 9 (d) Explain how NLR’s pricing decisions might be affected at two different stages of the product life cycle. 1: ....................................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... 2: ....................................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think promoting the brand image is the most important role of packaging? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... at [6] w w .e x 06_0450_11_2023_1.14 w © UCLES 2023 am -m ........................................................................................................................................... e. co m ........................................................................................................................................... 12 BLANK PAGE co e. at To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. m Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. w w .e x 06_0450_11_2023_1.14 w © UCLES 2023 am -m Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. ™ Cambridge IGCSE Paper 1 Short Answer and Data Response 0450/12 May/June 2023 1 hour 30 minutes You must answer on the question paper. No additional materials are needed. INSTRUCTIONS • Answer all questions. • Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs. • Write your name, centre number and candidate number in the boxes at the top of the page. • Write your answer to each question in the space provided. • Do not use an erasable pen or correction fluid. • Do not write on any bar codes. • You may use a calculator. m INFORMATION • The total mark for this paper is 80. • The number of marks for each question or part question is shown in brackets [ ]. w .e x [Turn over w 06_0450_12_2023_1.15 © UCLES 2023 am -m at e. co This document has 12 pages. Any blank pages are indicated. w *6006910796* BUSINESS STUDIES 2 1 FBW manufactures watches using job production. It employs 5 full-time production employees. Each worker is offered regular training. Last year FBW sold 600 watches. The Managing Director plans to use break-even analysis to help decide whether to increase the price of its products. FBW’s current break-even chart is shown in Fig. 1.1. Break-even chart for FBW’s watches 120 000 100 000 total revenue total costs 80 000 costs and revenue $ 60 000 40 000 fixed costs 20 000 0 0 100 200 300 400 500 600 700 800 number of watches Fig. 1.1 (a) Identify two reasons why a business might offer training to its employees. Reason 1: ......................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... [2] (b) Calculate the following values using Fig. 1.1: Break-even output: ........................................................................................................... [2] w w .e x 06_0450_12_2023_1.15 w © UCLES 2023 am -m at e. co m Break-even revenue: ........................................................................................................ 3 (c) Outline two possible effects on FBW’s break-even chart if the prices of its products are increased. Effect 1: ............................................................................................................................. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Effect 2: ............................................................................................................................. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] (d) Explain two benefits to FBW of having full-time employees. Benefit 1: .......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Benefit 2: .......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] w .e x [Turn over w 06_0450_12_2023_1.15 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 4 (e) Do you think job production is the best method of production for a small business to use? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] w w .e x 06_0450_12_2023_1.15 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 5 2 Gloria is a sole trader. Her business provides house-cleaning services. Gloria uses telephone calls to communicate with her 4 employees. She wants to expand the business by offering a repair service. Gloria plans to carry out some market research. She has been told producing a business plan can help to reduce risk. Gloria would also like to reduce her workload and is considering taking on a business partner. (a) Identify two ways a business plan can help a business to reduce risk. Way 1: ............................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... [2] (b) Identify two possible reasons why a business might want to expand. Reason 1: ......................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... [2] (c) Outline one advantage and one disadvantage to Gloria of using telephone calls as a method of communication with her employees. Advantage: ....................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Disadvantage: ................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w .e x [Turn over w 06_0450_12_2023_1.15 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 6 (d) Explain two factors Gloria should consider when deciding whether to take on a business partner. Factor 1: ........................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Factor 2: ........................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Explain two methods of primary market research a business could use to find out the demand for a new product or service. Which would be the best method to use? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... at [6] w w .e x 06_0450_12_2023_1.15 w © UCLES 2023 am -m ........................................................................................................................................... e. co m ........................................................................................................................................... 7 3 VVA is a business based in country X. It manufactures school backpacks (bags). VVA uses retailers as its channel of distribution. The Managing Director knows there are many factors that can affect demand including the stage of the business cycle and how competitive the market is. VVA imports 45% of its raw materials. The Managing Director is worried that the introduction of import tariffs and import quotas, as well as an appreciation in country X’s exchange rate, will affect VVA. (a) Define ‘import tariff’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two reasons why some markets can become more competitive. Reason 1: ......................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... [2] (c) State the four stages of the business cycle. 1: ....................................................................................................................................... ........................................................................................................................................... 2: ....................................................................................................................................... ........................................................................................................................................... 3: ....................................................................................................................................... ........................................................................................................................................... 4: ....................................................................................................................................... [4] w .e x [Turn over w 06_0450_12_2023_1.15 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 8 (d) Explain one possible effect of the following changes on VVA when importing raw materials: Introduction of import quotas in country X: ....................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Appreciation of country X’s exchange rate: ...................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think retailers are the best channel of distribution for a manufacturing business to use? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... co [6] w w .e x 06_0450_12_2023_1.15 w © UCLES 2023 am -m at e. ........................................................................................................................................... m ........................................................................................................................................... 9 4 CPF is a clothing retailer. It is a private limited company. It has 4 shops and 30 employees. The Finance Director is concerned about the amount of current assets because working capital is important. The amount of retained profit is also low. CPF’s directors are planning to expand the business by opening a new shop. A suitable source of long-term finance will need to be identified. The plan to expand will affect many of CPF’s stakeholder groups. (a) Define ‘retained profit’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Define ‘current assets’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (c) Outline two possible reasons why working capital is important for CPF. Reason 1: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w .e x [Turn over w 06_0450_12_2023_1.15 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 10 (d) Explain one way each of the following stakeholder groups might be affected by CPF’s plans to expand its business. Employees: ....................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Suppliers: .......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think it is better for a private limited company to use debt (e.g. a loan) or equity (issuing more shares) as a source of long-term finance? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... e. [6] w w .e x 06_0450_12_2023_1.15 w © UCLES 2023 am -m at ........................................................................................................................................... co m ........................................................................................................................................... 12 BLANK PAGE co e. at To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. m Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. w w .e x 06_0450_12_2023_1.15 w © UCLES 2023 am -m Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. ™ Cambridge IGCSE Paper 1 Short Answer and Data Response 0450/13 May/June 2023 1 hour 30 minutes You must answer on the question paper. No additional materials are needed. INSTRUCTIONS • Answer all questions. • Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs. • Write your name, centre number and candidate number in the boxes at the top of the page. • Write your answer to each question in the space provided. • Do not use an erasable pen or correction fluid. • Do not write on any bar codes. • You may use a calculator. m INFORMATION • The total mark for this paper is 80. • The number of marks for each question or part question is shown in brackets [ ]. w .e x [Turn over w 06_0450_13_2023_1.10 © UCLES 2023 am -m at e. co This document has 12 pages. Any blank pages are indicated. w *6251666735* BUSINESS STUDIES 2 1 TDG is a bicycle retailer. It has 3 employees. TDG needs to maintain customer loyalty as the business sells in a mass market. Simon, the manager, knows managing cash flow is important. He is analysing TDG’s cash-flow forecast. An extract is shown in Table 1.1. Simon is considering ways for TDG to overcome its short-term cash-flow problem in September. Table 1.1 Extract from TDG’s cash-flow forecast 2023 ($000) July August September Cash inflow X 50 40 Cash outflow 50 50 Y Net cash flow 10 0 (40) Opening balance 20 30 30 Closing balance 30 30 (10) (a) Define ‘mass market’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Calculate X and Y. X: ...................................................................................................................................... Y: ...................................................................................................................................... [2] (c) Outline two reasons why managing cash flow might be important for TDG. Reason 1: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [4] w w .e x 06_0450_13_2023_1.10 w © UCLES 2023 am -m at e. co ........................................................................................................................................... 3 (d) Explain two ways TDG could overcome its short-term cash-flow problem in September. Way 1: ............................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Explain two methods a retailer could use to maintain customer loyalty. Which would be the best method to use? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w .e x [Turn over w 06_0450_13_2023_1.10 w © UCLES 2023 am -m at e. co ........................................................................................................................................... 4 2 KCL manufactures paper which is used in the production of newspapers and books. KCL holds a high level of inventory and buys all its raw materials, including wood, from local suppliers. Quality control is important. The Operations Director is considering ways to increase efficiency in the factory. Pressure groups are trying to influence KCL’s decisions to ensure that the business does not create more external costs than external benefits. (a) Define ‘quality control’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two ways a pressure group might try to influence business decisions. Way 1: ............................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... [2] (c) State four benefits to a business of increasing efficiency. Benefit 1: .......................................................................................................................... ........................................................................................................................................... Benefit 2: .......................................................................................................................... ........................................................................................................................................... Benefit 3: .......................................................................................................................... ........................................................................................................................................... Benefit 4: .......................................................................................................................... [4] w w .e x 06_0450_13_2023_1.10 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 5 (d) Explain one external cost and one external benefit that may be created by KCL’s business. External cost: .................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... External benefit: ................................................................................................................ ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Explain two factors a manufacturing business should consider when deciding how much inventory to hold. Which factor is likely to be the most important? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... co [6] w .e x [Turn over w 06_0450_13_2023_1.10 w © UCLES 2023 am -m at e. ........................................................................................................................................... m ........................................................................................................................................... 6 3 PCY provides insurance services for businesses such as farms and factories. Being ethical is important to PCY. The business has 4 offices and 500 employees. Managers use different leadership styles. The Managing Director is planning to change how PCY is organised and managed. He said: ‘I want to reduce communication barriers within the business. Delegation will be encouraged. The span of control could change.’ (a) Define ‘span of control’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two leadership styles. Leadership style 1: ........................................................................................................... ........................................................................................................................................... Leadership style 2: ........................................................................................................... ........................................................................................................................................... [2] (c) Outline two benefits to PCY of encouraging its managers to use delegation. Benefit 1: .......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Benefit 2: .......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 06_0450_13_2023_1.10 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 7 (d) Explain two possible reasons why being ethical is important to PCY. Reason 1: ......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think lack of feedback is the main barrier to effective communication in a business? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... co [6] w .e x [Turn over w 06_0450_13_2023_1.10 w © UCLES 2023 am -m at e. ........................................................................................................................................... m ........................................................................................................................................... 8 4 Meena wants to leave her job as a teacher to become a successful entrepreneur. Her business will produce handmade jewellery. Meena knows that there is government support for business start-ups. She plans to use market research to help identify a market segment for her jewellery. Meena’s brother has offered to become her business partner but she cannot decide whether it would be better to operate as a sole trader. (a) Identify two ways a government might support business start-ups. Way 1: ............................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... [2] (b) Identify two ways a market can be segmented. Way 1: ............................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... [2] (c) Outline two characteristics Meena will need to become a successful entrepreneur. Characteristic 1: ................................................................................................................ ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Characteristic 2: ................................................................................................................ ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 06_0450_13_2023_1.10 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 9 (d) Explain one advantage and one disadvantage to Meena of operating as a sole trader rather than being in a partnership. Advantage: ....................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Disadvantage: ................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think accessing government sources, such as statistics, is the best method of market research for a start-up business to use? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... e. [6] w w .e x 06_0450_13_2023_1.10 w © UCLES 2023 am -m at ........................................................................................................................................... co m ........................................................................................................................................... 12 BLANK PAGE co e. at To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. m Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. w w .e x 06_0450_13_2023_1.10 w © UCLES 2023 am -m Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. ™ Cambridge IGCSE Paper 1 Short Answer and Data Response 0450/11 October/November 2023 1 hour 30 minutes You must answer on the question paper. No additional materials are needed. INSTRUCTIONS • Answer all questions. • Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs. • Write your name, centre number and candidate number in the boxes at the top of the page. • Write your answer to each question in the space provided. • Do not use an erasable pen or correction fluid. • Do not write on any bar codes. • You may use a calculator. m INFORMATION • The total mark for this paper is 80. • The number of marks for each question or part question is shown in brackets [ ]. w .e x [Turn over w 11_0450_11_2023_1.12 © UCLES 2023 am -m at e. co This document has 12 pages. Any blank pages are indicated. w *9504537922* BUSINESS STUDIES 2 1 Desmond wants to be a successful entrepreneur. He has decided to leave his office job to start up a gardening business cutting grass and planting flowers. It will be an unincorporated business. Desmond is aware that a new business is at greater risk of failure than an established business. He has identified his business objectives for the first year. Desmond has calculated he will need $750 for his start-up capital. (a) Define ‘unincorporated business’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two objectives a new business might have. Objective 1: ....................................................................................................................... ........................................................................................................................................... Objective 2: ....................................................................................................................... ........................................................................................................................................... [2] (c) Identify four characteristics of a successful entrepreneur. Characteristic 1: ................................................................................................................ ........................................................................................................................................... Characteristic 2: ................................................................................................................ ........................................................................................................................................... Characteristic 3: ................................................................................................................ ........................................................................................................................................... Characteristic 4: ................................................................................................................ [4] w w .e x 11_0450_11_2023_1.12 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 3 (d) Explain two reasons (other than lack of finance) why Desmond’s new business might be at greater risk of failure than an established business. Reason 1: ......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think owner’s savings are the most suitable source of finance for a start-up business? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... e. [6] w .e x [Turn over w 11_0450_11_2023_1.12 w © UCLES 2023 am -m at ........................................................................................................................................... co m ........................................................................................................................................... 4 2 LCT manufactures cooking pots. It has 16 employees. As a small business LCT uses social media as its method of advertising. The owner, Carole, knows having a good brand image is important. She is analysing LCT’s break-even chart. This is shown in Fig. 2.1. Carole is considering possible ways to lower LCT’s break-even level of output. Break-even chart for LCT 12 000 total revenue 10 000 costs / revenue ($) 8000 total costs 6000 4000 fixed costs 2000 0 100 200 300 400 500 600 700 800 900 1000 units Fig. 2.1 (a) Identify two limitations of break-even analysis. Limitation 1: ...................................................................................................................... ........................................................................................................................................... Limitation 2: ...................................................................................................................... ........................................................................................................................................... [2] (b) Calculate LCT’s profit if it sells 800 units. Show your working. Working: ........................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] w w .e x 11_0450_11_2023_1.12 w © UCLES 2023 am -m at e. co m Final answer: .................................................................................................................... 5 (c) Outline two possible benefits to LCT of having a good brand image. Benefit 1: .......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Benefit 2: .......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] (d) Explain two ways LCT might lower its break-even level of output. Way 1: ............................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] w .e x [Turn over w 11_0450_11_2023_1.12 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 6 (e) Do you think social media is the best method of advertising for a small business to use? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] w w .e x 11_0450_11_2023_1.12 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 7 3 ACP manufactures computers. Being ethical is important to ACP. The business employs 3000 workers in its factory. ACP imports 65% of its raw materials. As internal users of accounts, the directors plan to analyse ACP’s financial performance using profitability ratios. The Finance Director thinks making a profit is more important for a business than managing its cash flow. (a) Identify two external users of accounts. User 1: .............................................................................................................................. ........................................................................................................................................... User 2: .............................................................................................................................. ........................................................................................................................................... [2] (b) Identify two profitability ratios. Ratio 1: ............................................................................................................................. ........................................................................................................................................... Ratio 2: ............................................................................................................................. ........................................................................................................................................... [2] (c) Outline two possible reasons why ACP imports its raw materials. Reason 1: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w .e x [Turn over w 11_0450_11_2023_1.12 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 8 (d) Explain one benefit and one limitation to ACP of being ethical. Benefit: ............................................................................................................................. ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Limitation: ......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think making a profit is more important for a business than managing its cash flow? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... co [6] w w .e x 11_0450_11_2023_1.12 w © UCLES 2023 am -m at e. ........................................................................................................................................... m ........................................................................................................................................... 9 4 MRN is a food retailer. It has 490 shops and 70 000 employees. MRN has announced plans to close 80 of its shops. The Human Resources Director said: ‘20% of management jobs will be removed. We want to encourage delegation. MRN will continue to follow legal controls over employment.’ MRN’s directors know it is important that businesses respond to increased competition. (a) Define ‘delegation’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two legal controls over employment. Legal control 1: ................................................................................................................. ........................................................................................................................................... Legal control 2: ................................................................................................................. ........................................................................................................................................... [2] (c) Outline two functions of MRN’s shop managers. Function 1: ........................................................................................................................ ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Function 2: ........................................................................................................................ ........................................................................................................................................... ........................................................................................................................................... [4] w .e x [Turn over w 11_0450_11_2023_1.12 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 10 (d) Explain two factors MRN should consider when deciding which shops to close. Factor 1: ........................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Factor 2: ........................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Explain two ways a retail business could respond to increased competition. Which would be the best way to use? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w w .e x 11_0450_11_2023_1.12 w © UCLES 2023 am -m at e. co ........................................................................................................................................... 12 BLANK PAGE co e. at To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. m Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. w w .e x 11_0450_11_2023_1.12 w © UCLES 2023 am -m Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. ™ Cambridge IGCSE Paper 1 Short Answer and Data Response 0450/12 October/November 2023 1 hour 30 minutes You must answer on the question paper. No additional materials are needed. INSTRUCTIONS • Answer all questions. • Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs. • Write your name, centre number and candidate number in the boxes at the top of the page. • Write your answer to each question in the space provided. • Do not use an erasable pen or correction fluid. • Do not write on any bar codes. • You may use a calculator. m INFORMATION • The total mark for this paper is 80. • The number of marks for each question or part question is shown in brackets [ ]. w .e x [Turn over w 11_0450_12_2023_1.11 © UCLES 2023 am -m at e. co This document has 12 pages. Any blank pages are indicated. w *6639094461* BUSINESS STUDIES 2 1 Paolo wants to start up a business making cakes. He plans to sell all of his products to a wholesaler. Paolo knows the packaging for his products will be important. He has prepared some financial and sales data. An extract from this data is shown in Table 1.1. Paolo is considering using crowdfunding as a source of finance. He knows the business will also need working capital. Table 1.1 Extract from Paolo’s financial and sales data Average price per cake $6 Average cost per cake $4 Forecast average number of cake sales per day 50 (a) Define ‘working capital’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Calculate the average revenue per day. Show your working. Working: ........................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Final answer: .................................................................................................................... [2] (c) Outline two reasons why packaging will be important for Paolo’s business. Reason 1: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 11_0450_12_2023_1.11 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 3 (d) Explain one advantage and one disadvantage to Paolo’s business of using crowdfunding as a source of finance. Advantage: ....................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Disadvantage: ................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think selling to a wholesaler is the best channel of distribution for a start-up business to use? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... e. [6] w .e x [Turn over w 11_0450_12_2023_1.11 w © UCLES 2023 am -m at ........................................................................................................................................... co m ........................................................................................................................................... 4 2 TBX manufactures high-quality steel which is used to build railways. The method of production used allows TBX to benefit from economies of scale. The business holds a high level of inventory including iron ore. The Managing Director knows business activity could have an impact on the environment and is considering ways the business can contribute to sustainable development. (a) Identify two ways business activity could have an impact on the environment. Way 1: ............................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... [2] (b) Identify two ways a business could contribute to sustainable development. Way 1: ............................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... [2] (c) Outline two possible economies of scale TBX might benefit from. Economy of scale 1: ......................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Economy of scale 2: ......................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 11_0450_12_2023_1.11 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 5 (d) Explain two possible problems for TBX of holding a high level of inventory. Problem 1: ........................................................................................................................ ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Problem 2: ........................................................................................................................ ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think quality control is the best method for a manufacturing business to use to achieve quality production? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... co [6] w .e x [Turn over w 11_0450_12_2023_1.11 w © UCLES 2023 am -m at e. ........................................................................................................................................... m ........................................................................................................................................... 6 3 Country X has a mixed economy with both private and public sector organisations. These organisations are involved in different sectors of economic activity. In the last 20 years the primary sector has become less important to country X’s economy. A summary of the changes is shown in Table 3.1. The government is planning to encourage multinational companies to set up factories in country X. Table 3.1 Economic sectors in country X as a percentage of GDP Year Primary Secondary Tertiary 2000 60% 15% 25% 2020 20% 30% 50% (a) Define ‘public sector’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Define ‘gross domestic product’ (GDP). ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (c) Identify four types of business organisation in the private sector. Type 1: .............................................................................................................................. ........................................................................................................................................... Type 2: .............................................................................................................................. ........................................................................................................................................... Type 3: .............................................................................................................................. ........................................................................................................................................... at [4] w w .e x 11_0450_12_2023_1.11 w © UCLES 2023 am -m ........................................................................................................................................... e. co m Type 4: .............................................................................................................................. 7 (d) Using the data from Table 3.1, explain two possible reasons for the changing importance of the primary sector in country X. Reason 1: ......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think the benefits to a country of having a multinational company located there are always greater than the drawbacks? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... at [6] w .e x [Turn over w 11_0450_12_2023_1.11 w © UCLES 2023 am -m ........................................................................................................................................... e. co m ........................................................................................................................................... 8 4 TFN is a travel business which sells holidays. It has 37 shops and 1000 employees. Last year TFN’s profit increased to $46 million. The Managing Director knows that good customer service has helped maintain customer loyalty. He said: ‘TFN’s managers use ideas from Herzberg’s two-factor theory to help motivate employees. All employees are provided with off-the-job training and each manager has a wide span of control.’ (a) Identify two advantages to a business of maintaining customer loyalty. Advantage 1: .................................................................................................................... ........................................................................................................................................... Advantage 2: .................................................................................................................... ........................................................................................................................................... [2] (b) Identify two hygiene factors from Herzberg’s two-factor theory. Hygiene factor 1: .............................................................................................................. ........................................................................................................................................... Hygiene factor 2: .............................................................................................................. ........................................................................................................................................... [2] (c) Outline two reasons why profit might be important to TFN. Reason 1: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 11_0450_12_2023_1.11 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 9 (d) Explain one advantage and one disadvantage to TFN of its managers having a wide span of control. Advantage: ....................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Disadvantage: ................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think off-the-job training is the best method of training for a service sector business to use? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... e. [6] w w .e x 11_0450_12_2023_1.11 w © UCLES 2023 am -m at ........................................................................................................................................... co m ........................................................................................................................................... 12 BLANK PAGE co e. at To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. m Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. w w .e x 11_0450_12_2023_1.11 w © UCLES 2023 am -m Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. ™ Cambridge IGCSE Paper 1 Short Answer and Data Response 0450/13 October/November 2023 1 hour 30 minutes You must answer on the question paper. No additional materials are needed. INSTRUCTIONS • Answer all questions. • Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs. • Write your name, centre number and candidate number in the boxes at the top of the page. • Write your answer to each question in the space provided. • Do not use an erasable pen or correction fluid. • Do not write on any bar codes. • You may use a calculator. m INFORMATION • The total mark for this paper is 80. • The number of marks for each question or part question is shown in brackets [ ]. w .e x [Turn over w 11_0450_13_2023_1.11 © UCLES 2023 am -m at e. co This document has 12 pages. Any blank pages are indicated. w *4057961550* BUSINESS STUDIES 2 1 DBR is a mining business. It is a large public limited company which operates in the primary sector. DBR has 8 diamond mines and has 3000 employees. Specialisation is important. DBR has grown quickly over the past 5 years. The Managing Director is worried about possible diseconomies of scale as the business continues to grow. In 2022 DBR’s profit was $600 million. (a) Identify two benefits to a business of specialisation. Benefit 1: .......................................................................................................................... ........................................................................................................................................... Benefit 2: .......................................................................................................................... ........................................................................................................................................... [2] (b) Identify two ways a business can grow. Way 1: ............................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... [2] (c) Outline one possible advantage and one possible disadvantage of DBR being a public limited company. Advantage: ....................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Disadvantage: ................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 11_0450_13_2023_1.11 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 3 (d) Explain two diseconomies of scale DBR might experience. Diseconomy of scale 1: .................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Diseconomy of scale 2: .................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Explain two ways the size of a primary sector business can be measured. Which do you think is the best way? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w .e x [Turn over w 11_0450_13_2023_1.11 w © UCLES 2023 am -m at e. co ........................................................................................................................................... 4 2 NPZ is a pizza restaurant. It has 35 part-time employees. The owner, Trent, is interested in different methods to improve motivation as he thinks having well-motivated employees is important. Trent is analysing NPZ’s financial statements. An extract is shown in Table 2.1. Trent is also considering ways to increase NPZ’s profit. Table 2.1 Extract from NPZ’s financial statements 2022 $000s Revenue 600 Gross profit 240 Profit for the year 60 Current liabilities 75 Capital employed 300 (a) Define ‘current liabilities’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Calculate NPZ’s return on capital employed (ROCE). Show your working. Working: ........................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] w w .e x 11_0450_13_2023_1.11 w © UCLES 2023 am -m at e. co m Final answer: .................................................................................................................... 5 (c) Outline two possible benefits to NPZ of having well-motivated employees. Benefit 1: .......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Benefit 2: .......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] (d) Explain two methods NPZ could use to improve employee motivation. Method 1: .......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Method 2: .......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] w .e x [Turn over w 11_0450_13_2023_1.11 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 6 (e) Do you think reducing variable costs is the best way for a business to improve profit? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] w w .e x 11_0450_13_2023_1.11 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 7 3 BKS is a manufacturer which makes a range of food products. Having a good brand image is important. Most of BKS’s products are sold directly to large retailers. The business is always developing new products. The Marketing Manager knows that the stage of the product life cycle will influence BKS’s marketing decisions about promotion. She is also aware of the reasons why the business should respond to environmental pressures. (a) Define ‘brand image’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify one benefit and one limitation for a business of developing new products. Benefit: ............................................................................................................................. ........................................................................................................................................... Limitation: ......................................................................................................................... ........................................................................................................................................... [2] (c) Outline two possible reasons why BKS might respond to environmental pressures. Reason 1: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w .e x [Turn over w 11_0450_13_2023_1.11 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 8 (d) Explain how BKS’s marketing decisions about promotion might be affected if a product is in the following stages of the product life cycle. Introduction stage: ............................................................................................................ ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Maturity stage: .................................................................................................................. ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think selling direct to retailers is the best channel of distribution for a manufacturer to use? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] w w .e x 11_0450_13_2023_1.11 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 9 4 FXN manufactures mobile phones. It is a multinational company. FXN plans to build a new factory in country Y. One reason for this is the decision by the government of country Y to introduce import quotas. The Managing Director said: ‘The new factory will create 1200 jobs and help lower the level of unemployment in country Y. FXN will start the recruitment process as soon as a decision has been made about a suitable location for the new factory.’ (a) Define ‘import quota’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two advantages to a country of having lower levels of unemployment. Advantage 1: .................................................................................................................... ........................................................................................................................................... Advantage 2: .................................................................................................................... ........................................................................................................................................... [2] (c) Identify four possible drawbacks for a country of having a multinational company located there. Drawback 1: ...................................................................................................................... ........................................................................................................................................... Drawback 2: ...................................................................................................................... ........................................................................................................................................... Drawback 3: ...................................................................................................................... ........................................................................................................................................... Drawback 4: ...................................................................................................................... [4] w .e x [Turn over w 11_0450_13_2023_1.11 w © UCLES 2023 am -m at e. co m ........................................................................................................................................... 10 (d) Explain two factors FXN should consider when deciding on a suitable location for the new factory. Factor 1: ........................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Factor 2: ........................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think a recruitment website, which advertises jobs, is the best method for a business to use when recruiting a large number of employees? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... e. [6] w w .e x 11_0450_13_2023_1.11 w © UCLES 2023 am -m at ........................................................................................................................................... co m ........................................................................................................................................... 12 BLANK PAGE co e. at To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. m Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. w w .e x 11_0450_13_2023_1.11 w © UCLES 2023 am -m Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. ™ Cambridge IGCSE Paper 1 Short Answer and Data Response 0450/12 February/March 2024 1 hour 30 minutes You must answer on the question paper. No additional materials are needed. INSTRUCTIONS • Answer all questions. • Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs. • Write your name, centre number and candidate number in the boxes at the top of the page. • Write your answer to each question in the space provided. • Do not use an erasable pen or correction fluid. • Do not write on any bar codes. • You may use a calculator. m INFORMATION • The total mark for this paper is 80. • The number of marks for each question or part question is shown in brackets [ ]. w .e x [Turn over w 03_0450_12_2024_1.14 © UCLES 2024 am -m at e. co This document has 12 pages. Any blank pages are indicated. w *2111597861* BUSINESS STUDIES 2 1 TCH is a small bakery producing pastries and cakes. It operates in the secondary sector. The added value of TCH’s products has increased since it opened 3 years ago. TCH uses non-financial methods to motivate its 6 employees. TCH’s business objectives have changed since it started up. One of its new objectives is to expand. Many businesses use external recruitment when they expand. (a) Define ‘added value’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Define ‘secondary sector’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (c) Outline two reasons why TCH’s business objectives might have changed. Reason 1: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 03_0450_12_2024_1.14 w © UCLES 2024 am -m at e. co m ........................................................................................................................................... 3 (d) Explain two non-financial methods of motivation TCH could use. Method 1: .......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Method 2: .......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Explain two methods of external recruitment a business could use. Which is likely to be the best method to use? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w .e x [Turn over w 03_0450_12_2024_1.14 w © UCLES 2024 am -m at e. co ........................................................................................................................................... 4 2 PLY manufactures hats in its factory in country X. The economy of country X is in a recession. PLY sells its hats online to the mass market. It uses email to communicate with its customers. PLY uses market research when making decisions. The Managing Director is considering ways for PLY to become more environmentally friendly as she is aware of new legal controls over business activity. She is also aware of the role of pressure groups. (a) Identify two characteristics of a recession. Characteristic 1: ................................................................................................................ ........................................................................................................................................... Characteristic 2: ................................................................................................................ ........................................................................................................................................... [2] (b) Define ‘pressure group’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (c) Outline two ways PLY could be affected by legal controls over business activity affecting the environment. Way 1: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 03_0450_12_2024_1.14 w © UCLES 2024 am -m at e. co m ........................................................................................................................................... 5 (d) Explain one advantage and one disadvantage of PLY using email to communicate with its customers. Advantage: ....................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Disadvantage: ................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Explain two reasons why a business uses market research. Which reason is likely to be the most important? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... e. [6] w .e x [Turn over w 03_0450_12_2024_1.14 w © UCLES 2024 am -m at ........................................................................................................................................... co m ........................................................................................................................................... 6 3 FR is a multinational company. It has hotels in 18 countries. FR wants to expand into a new market and is planning to build another hotel. FR’s Marketing Director is considering how the market can be segmented. FR’s Financial Director is considering which source of finance to use to fund the expansion. He is also constructing a cash-flow forecast for the new hotel’s first year of trading. (a) Identify one cash inflow and one cash outflow for a business. Cash inflow: ...................................................................................................................... ........................................................................................................................................... Cash outflow: .................................................................................................................... ........................................................................................................................................... [2] (b) Identify two factors which might affect the source of finance a business chooses to use. Factor 1: ........................................................................................................................... ........................................................................................................................................... Factor 2: ........................................................................................................................... ........................................................................................................................................... [2] (c) Identify four ways a market can be segmented. Way 1: ............................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... Way 3: ............................................................................................................................... ........................................................................................................................................... Way 4: ............................................................................................................................... [4] w w .e x 03_0450_12_2024_1.14 w © UCLES 2024 am -m at e. co m ........................................................................................................................................... 7 (d) Explain two advantages to FR of being a multinational company. Advantage 1: .................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Advantage 2: .................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Explain two ways a cash-flow forecast could be used by a business. Which is likely to be the most important way? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w .e x [Turn over w 03_0450_12_2024_1.14 w © UCLES 2024 am -m at e. co ........................................................................................................................................... 8 4 Suliman owns a small business which sells t-shirts on its website. He operates as a sole trader. Suliman is analysing data for his existing business. An extract from this data is shown in Table 4.1. Suliman wants to open his first shop and needs to decide on a suitable location. He is considering which type of sales promotion to use for the new shop. Table 4.1 Extract from Suliman’s data for his existing business Break-even output 500 t-shirts Current sales 550 t-shirts Selling price per t-shirt $3.99 Variable cost per t-shirt $1.99 (a) Define ‘break-even output’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Calculate the margin of safety. Show your working. Working: ........................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Final answer: .................................................................................................................... [2] (c) Outline two methods of sales promotion Suliman could use for the new shop. Method 1: .......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Method 2: .......................................................................................................................... m ........................................................................................................................................... w w .e x 03_0450_12_2024_1.14 w © UCLES 2024 -m [4] am ........................................................................................................................................... at e. co ........................................................................................................................................... 9 (d) Explain two factors Suliman should consider when deciding on a suitable location for the new shop. Factor 1: ........................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Factor 2: ........................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think operating as a sole trader is the best type of organisation for a small business? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... at [6] w w .e x 03_0450_12_2024_1.14 w © UCLES 2024 am -m ........................................................................................................................................... e. co m ........................................................................................................................................... 12 BLANK PAGE co e. at To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. m Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. w w .e x 03_0450_12_2024_1.14 w © UCLES 2024 am -m Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. ™ Cambridge IGCSE Paper 1 Short Answer and Data Response 0450/11 May/June 2024 1 hour 30 minutes You must answer on the question paper. No additional materials are needed. INSTRUCTIONS • Answer all questions. • Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs. • Write your name, centre number and candidate number in the boxes at the top of the page. • Write your answer to each question in the space provided. • Do not use an erasable pen or correction fluid. • Do not write on any bar codes. • You may use a calculator. m INFORMATION • The total mark for this paper is 80. • The number of marks for each question or part question is shown in brackets [ ]. w .e x [Turn over w 06_0450_11_2024_1.9 © UCLES 2024 am -m at e. co This document has 12 pages. Any blank pages are indicated. w *4078717423* BUSINESS STUDIES 2 1 FBM is a boat building business. It has 100 skilled employees. The Operations Director is concerned that FBM holds a high level of inventory. She is also concerned that the business is starting to experience diseconomies of scale. The Finance Director has been asked to analyse FBM’s cost and output data. An extract is shown in Table 1.1. Table 1.1 Extract from FBM’s cost and output data Variable costs per unit $5000 Fixed costs per year $600 000 Number of boats made each year 300 (a) Define ‘diseconomies of scale’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two ways a business can use cost data to help make decisions. Way 1: ............................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... [2] (c) Identify four fixed costs a business might have. Fixed cost 1: ..................................................................................................................... ........................................................................................................................................... Fixed cost 2: ..................................................................................................................... ........................................................................................................................................... Fixed cost 3: ..................................................................................................................... ........................................................................................................................................... Fixed cost 4: ..................................................................................................................... m [4] w w .e x 06_0450_11_2024_1.9 w © UCLES 2024 am -m at e. co ........................................................................................................................................... 3 (d) Explain one advantage and one disadvantage to FBM of holding a high level of inventory. Advantage: ....................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Disadvantage: ................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think customers have a more important role in the success of a business than its employees? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w .e x [Turn over w 06_0450_11_2024_1.9 w © UCLES 2024 am -m at e. co ........................................................................................................................................... 4 2 ADN is a food retailer. It has 5 shops and 300 full-time employees. All ADN’s employees receive off-the-job training. ADN has a tall hierarchical structure. Managers have a narrow span of control and all use an autocratic leadership style. ADN’s directors are planning to expand the business and cannot decide whether it is better for a business to use internal growth or external growth. (a) Define ‘span of control’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Define ‘autocratic leadership style’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (c) Outline two benefits to ADN of having full-time employees. Benefit 1: .......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Benefit 2: .......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 06_0450_11_2024_1.9 w © UCLES 2024 am -m at e. co m ........................................................................................................................................... 5 (d) Explain one benefit and one limitation to ADN of using off-the-job training. Benefit: ............................................................................................................................. ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Limitation: ......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think it is better for a business to use internal growth or external growth when planning to expand? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w .e x [Turn over w 06_0450_11_2024_1.9 w © UCLES 2024 am -m at e. co ........................................................................................................................................... 6 3 IDT manufactures clothes for the mass market. It is a multinational company with factories in 4 countries. IDT has short-term and long-term financial needs. The Finance Director is analysing IDT’s statement of financial position. An extract is shown in Table 3.1. He has been asked to calculate working capital and to explain how an increase in non-current liabilities might affect IDT. Table 3.1 Extract from IDT’s statement of financial position ($ million) 2022 2023 Current assets 380 420 Current liabilities 250 280 Non-current liabilities 300 400 (a) Define ‘mass market’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Calculate IDT’s working capital in 2023. Working: ........................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Final answer: .................................................................................................................... [2] (c) Outline one reason why IDT might need the following types of finance: Short-term finance: ........................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Long-term finance: ............................................................................................................ ........................................................................................................................................... ........................................................................................................................................... m [4] w w .e x 06_0450_11_2024_1.9 w © UCLES 2024 am -m at e. co ........................................................................................................................................... 7 (d) Explain two ways an increase in non-current liabilities might affect IDT. Way 1: ............................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Explain two advantages to a business of being a multinational company. Which advantage do you think is likely to be the most important? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w .e x [Turn over w 06_0450_11_2024_1.9 w © UCLES 2024 am -m at e. co ........................................................................................................................................... 8 4 CFG is a social enterprise. It buys cocoa beans from local farmers and then uses the beans to make chocolate. Being ethical is important to the business. CFG has developed a new chocolate bar. The Marketing Manager plans to use skimming as its pricing method, and retailers as its distribution channel for the new product. He knows there are many legal controls over marketing that might affect a business. (a) Define ‘social enterprise’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two ways legal controls over marketing might affect a business. Way 1: ............................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... [2] (c) Outline one advantage and one disadvantage to CFG of using skimming as its pricing method. Advantage: ....................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Disadvantage: ................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w w .e x 06_0450_11_2024_1.9 w © UCLES 2024 am -m at e. co m ........................................................................................................................................... 9 (d) Explain one advantage and one disadvantage to CFG of using retailers as its distribution channel for the new product. Advantage: ....................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Disadvantage: ................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think being ethical will always lead to lower profit for a business? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w w .e x 06_0450_11_2024_1.9 w © UCLES 2024 am -m at e. co ........................................................................................................................................... 12 BLANK PAGE co e. at To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. m Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. w w .e x 06_0450_11_2024_1.9 w © UCLES 2024 am -m Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. * 0019655495801 * , , ™ Cambridge IGCSE ¬Wz> 3mKmSE5FpW ¬8c=]mmjvK~Fs ¥5u5eE55¥U5e¥uU Paper 1 Short Answer and Data Response May/June 2024 1 hour 30 minutes You must answer on the question paper. No additional materials are needed. INSTRUCTIONS • Answer all questions. • Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs. • Write your name, centre number and candidate number in the boxes at the top of the page. • Write your answer to each question in the space provided. • Do not use an erasable pen or correction fluid. • Do not write on any bar codes. • You may use a calculator. co m INFORMATION • The total mark for this paper is 80. • The number of marks for each question or part question is shown in brackets [ ]. .e x w [Turn over w 06_0450_12_2024_1.11 © UCLES 2024 am -m at e. This document has 12 pages. Any blank pages are indicated. w *4325949627* 0450/12 BUSINESS STUDIES * 0019655495802 * 1 DO NOT WRITE IN THIS MARGIN , 2 , Nicky wants to be a successful entrepreneur. She plans to start up a travel business specialising in walking holidays. Nicky will be operating in a niche market. She is preparing a business plan to help with her decision-making. Nicky has been told government support is available for business start-ups. She knows building customer relationships will be important. (a) Identify two reasons why a government might support business start-ups. Reason 1: ......................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... [2] (b) Identify two ways a business can build customer relationships. Way 1: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN Way 2: ............................................................................................................................... [2] (c) Outline one benefit and one limitation to Nicky’s business of operating in a niche market. Benefit: ............................................................................................................................. ........................................................................................................................................... ........................................................................................................................................... Limitation: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w 06_0450_12_2024_1.11 w ĬÕú¾Ġ³íËíÓĉÅĂ¸ĜÈî× Ĭ¸ĕäÀéùěÑöĄè¼øö±ûĂ ĥĥąĕµÕĥõõõĥåÕõÅåÕÕ w © UCLES 2024 .e x am -m at e. co m ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN * 0019655495803 * , 3 , (d) Explain one way each of the following sections in the business plan might be helpful to Nicky. Business objectives: ......................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Data about the market: ..................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Explain two characteristics of a successful entrepreneur. Which characteristic is likely to be the most important? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... co [6] 06_0450_12_2024_1.11 [Turn over w Ĭ×ú¾Ġ³íËíÓĉÅĂ¸ĚÈî× Ĭ¸ĖãÈßõīèĄíġĠĀâ±ċĂ ĥĥõÕõµąĕĥąµåÕĕåĥÅÕ w © UCLES 2024 .e x am -m at e. ........................................................................................................................................... m ........................................................................................................................................... w DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... * 0019655495804 * 2 DO NOT WRITE IN THIS MARGIN , 4 , GTB is a business which operates in the tertiary sector. It owns 5 cafés selling food and drinks. The business uses social media as its method of promotion. The Finance Manager, Moeen, is analysing GTB’s financial statements. An extract is shown in Table 2.1. He is considering ways to improve GTB’s profit margin. Moeen knows there are other users that are interested in the accounts of a business. Table 2.1 Revenue $600 000 Profit $150 000 Capital employed $750 000 Profit margin 25% DO NOT WRITE IN THIS MARGIN Extract from GTB’s financial statements 2023 (a) Define ‘tertiary sector’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... [2] (b) Calculate GTB’s Return on Capital Employed (ROCE). Show your working. Working: ........................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] DO NOT WRITE IN THIS MARGIN Final answer: .................................................................................................................... (c) Outline two ways GTB could improve its profit margin. Way 1: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... .e x w 06_0450_12_2024_1.11 w ĬÕú¾Ġ³íËíÓĉÅĂ¶ĜÈð× Ĭ¸ĖâÈåćĞÓþöĪ¾äĄáóĂ ĥÕåÕµµąµąåÅåĕĕąĥÕÕ w © UCLES 2024 co e. at -m [4] am ........................................................................................................................................... m ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN Way 2: ............................................................................................................................... DO NOT WRITE IN THIS MARGIN * 0019655495805 * , 5 , (d) Explain two advantages to GTB of using social media as its method of promotion. Advantage 1: .................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Advantage 2: .................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think banks are the main external users of the accounts of a business? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... co [6] 06_0450_12_2024_1.11 [Turn over w Ĭ×ú¾Ġ³íËíÓĉÅĂ¶ĚÈð× Ĭ¸ĕáÀãċĎæüċßĚÜØáăĂ ĥÕÕĕõÕĥÕĕÕĕåĕõĥåÅÕ w © UCLES 2024 .e x am -m at e. ........................................................................................................................................... m ........................................................................................................................................... w DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... * 0019655495806 * 3 DO NOT WRITE IN THIS MARGIN , 6 , RBG is an oil company. It has operations in 6 countries. RBG has 2000 employees including 60 managers. Some of its managers use a laissez-faire leadership style. All of RBG’s internal communication uses information technology (IT) based methods. The Managing Director knows RBG’s business activities can create external costs and external benefits. She says: ‘Pressure groups often try to influence business decisions.’ (a) Define ‘laissez-faire leadership style’. ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two roles of a manager. Role 1: .............................................................................................................................. DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... Role 2: .............................................................................................................................. ........................................................................................................................................... [2] (c) Outline one external cost and one external benefit RBG’s business activities might create. External cost: .................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... External benefit: ................................................................................................................ ........................................................................................................................................... ........................................................................................................................................... [4] w 06_0450_12_2024_1.11 w ĬÙú¾Ġ³íËíÓĉÅĂ·ĚÅî× Ĭ¸ĖáÃéģĘÞïúÖúäµĉóĂ ĥąõĕõõĥõÕµµåÕõÅĥĕÕ w © UCLES 2024 .e x am -m at e. co m ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN * 0019655495907 * , 7 , (d) Explain two methods of IT based communication RBG might use with its employees. Method 1: .......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Method 2: .......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Explain two ways a pressure group might try to influence business decisions. Which way do you think is likely to be the most effective? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... co e. at [6] 06_0450_12_2024_1.11 [Turn over w ĬÛù¿Ġ³íËíÓĉÅĂ¸ĚÅî× Ĭ¸ĖãÀæĔòÍîĆġÁĤµ¹ċĂ ĥµÕÕõÕÅĕµµĕåĕµÅååÕ w © UCLES 2024 .e x am -m ........................................................................................................................................... m ........................................................................................................................................... w DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... * 0019655495908 * 4 DO NOT WRITE IN THIS MARGIN , 8 , DLT manufactures cups and plates in country X. Its factory uses flow production and has 75 employees. The Human Resources Director is aware that there are many legal controls over employment. DLT exports 30% of its products to country Y where it benefits from lower rates of taxation and no import quotas. DLT’s Managing Director is considering relocating its factory to another part of country X to meet the increased demand for its exports. (a) Define ‘import quota’. ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two benefits to a business of lower rates of taxation. Benefit 1: .......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN Benefit 2: .......................................................................................................................... [2] (c) Identify four legal controls over employment. Legal control 1: ................................................................................................................. ........................................................................................................................................... Legal control 2: ................................................................................................................. Legal control 3: ................................................................................................................. ........................................................................................................................................... Legal control 4: ................................................................................................................. [4] w 06_0450_12_2024_1.11 w ĬÙù¿Ġ³íËíÓĉÅĂ¶ĜÅð× Ĭ¸ĖâÀàĢ÷êôýĪģÀėéóĂ ĥąąÕµÕÅµÕĕĥåÕµĥåµÕ w © UCLES 2024 .e x am -m at e. co m ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN * 0019655495909 * , 9 , (d) Explain one reason why DLT needs to consider each of the following factors when deciding where to relocate in country X: Suppliers: .......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Suitability of land: ............................................................................................................. ........................................................................................................................................... Explanation: ...................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think the advantages for a manufacturing business of using flow production are greater than the disadvantages? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... co e. at [6] 06_0450_12_2024_1.11 w ĬÛù¿Ġ³íËíÓĉÅĂ¶ĚÅð× Ĭ¸ĕáÈêĞćÏĆôß·¸ÃéăĂ ĥąõĕõµåÕÅĥµåÕÕąĥåÕ w © UCLES 2024 .e x am -m ........................................................................................................................................... m ........................................................................................................................................... w DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... * 0019655495912 * DO NOT WRITE IN THIS MARGIN , 12 , co e. -m at To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. m Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. w 06_0450_12_2024_1.11 w ĬÙù¿Ġ³íËíÓĉÅĂµĜÇð× Ĭ¸Ęä½âĘĘæăôþùĚąāăĂ ĥĥÅÕµµąõąõÅĥĕõåĥąÕ w © UCLES 2024 .e x am Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN BLANK PAGE ™ Cambridge IGCSE Paper 1 Short Answer and Data Response 0450/13 May/June 2024 1 hour 30 minutes You must answer on the question paper. No additional materials are needed. INSTRUCTIONS • Answer all questions. • Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs. • Write your name, centre number and candidate number in the boxes at the top of the page. • Write your answer to each question in the space provided. • Do not use an erasable pen or correction fluid. • Do not write on any bar codes. • You may use a calculator. m INFORMATION • The total mark for this paper is 80. • The number of marks for each question or part question is shown in brackets [ ]. w .e x [Turn over w 06_0450_13_2024_1.12 © UCLES 2024 am -m at e. co This document has 12 pages. Any blank pages are indicated. w *8737071254* BUSINESS STUDIES 2 1 WFT is a primary sector business which harvests timber (wood) from trees. The Operations Manager knows there are many legal controls over business activity affecting the environment. WFT has 30 employees and uses a lot of technology to process the timber. The business is always considering ways to increase added value. WFT often needs finance. An extract from WFT’s statement of financial position is shown in Table 1.1. Table 1.1 Extract from WFT’s statement of financial position at 30 April 2024 $ Non-current assets 600 000 Current assets 120 000 Current liabilities 150 000 Non-current liabilities 320 000 (a) Identify one non-current asset and one non-current liability. Non-current asset: ............................................................................................................ ........................................................................................................................................... Non-current liability: .......................................................................................................... ........................................................................................................................................... [2] (b) Calculate WFT’s current ratio in 2024. Show your working. Working: ........................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] w w .e x 06_0450_13_2024_1.12 w © UCLES 2024 am -m at e. co m Final answer: .................................................................................................................... 3 (c) Outline two ways legal controls over business activity affecting the environment might affect WFT. Way 1: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] (d) Explain two factors WFT should consider when deciding on a source of finance. Factor 1: ........................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Factor 2: ........................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] w .e x [Turn over w 06_0450_13_2024_1.12 w © UCLES 2024 am -m at e. co m ........................................................................................................................................... 4 (e) Explain two ways a business might increase added value. Which do you think is the best way? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] w w .e x 06_0450_13_2024_1.12 w © UCLES 2024 am -m at e. co m ........................................................................................................................................... 5 2 Alana opened a restaurant in the city centre 5 years ago. The restaurant provides plant-based meals using a range of vegetables. Alana uses primary market research to help identify changes in consumer spending patterns. Market research can also be used to help segment a market. The restaurant has 16 employees. Each employee is paid the legal minimum wage. In 2023 the business made a profit of $80 000. Alana wants to know how an increase in interest rates might affect her business. (a) Define ‘profit’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two reasons why consumer spending patterns might change. Reason 1: ......................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... [2] (c) Outline two methods of primary market research Alana might use. Method 1: .......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Method 2: .......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w .e x [Turn over w 06_0450_13_2024_1.12 w © UCLES 2024 am -m at e. co m ........................................................................................................................................... 6 (d) Explain two possible effects of an increase in interest rates on Alana’s business. Effect 1: ............................................................................................................................. ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Effect 2: ............................................................................................................................. ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think income is the best way for a business to segment a market? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w w .e x 06_0450_13_2024_1.12 w © UCLES 2024 am -m at e. co ........................................................................................................................................... 7 3 CQT is a public limited company. It manufactures paint using flow production. This method of production allows CQT to benefit from economies of scale. CQT employs 50 workers. All CQT’s raw materials are currently bought from local suppliers. However, the Operations Director knows there are many reasons for globalisation. He has been asked to explain factors a business should consider when deciding whether to relocate its factory to another country. (a) Define ‘public limited company’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two reasons for globalisation. Reason 1: ......................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... [2] (c) Outline two economies of scale CQT might benefit from. Economy of scale 1: ......................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Economy of scale 2: ......................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w .e x [Turn over w 06_0450_13_2024_1.12 w © UCLES 2024 am -m at e. co m ........................................................................................................................................... 8 (d) Explain two limitations for CQT of using flow production. Limitation 1: ...................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Limitation 2: ...................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Explain two factors a business should consider when deciding whether to relocate its factory to another country. Which factor is likely to be the most important? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w w .e x 06_0450_13_2024_1.12 w © UCLES 2024 am -m at e. co ........................................................................................................................................... 9 4 MTO is a bank. It provides loans and other financial services to 1 million customers. MTO has 70 branches and 2800 employees. Many of its employees work part-time. The business has a tall organisational structure and its managers have a narrow span of control. Effective internal communication is important. One of MTO’s objectives is growth and the Human Resources Director has been asked to recruit a new manager. Information about applicant A is shown in Table 4.1. Table 4.1 Information about applicant A Qualifications University degree in Business Skills Good at decision-making Experience 18 months working at another business including 3 months as a manager (a) Identify two advantages to a business of having part-time employees. Advantage 1: .................................................................................................................... ........................................................................................................................................... Advantage 2: .................................................................................................................... ........................................................................................................................................... [2] (b) Define ‘organisational structure’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (c) Identify four reasons why effective internal communication is important for a business. Reason 1: ......................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... Reason 3: ......................................................................................................................... ........................................................................................................................................... e. co [4] w .e x [Turn over w 06_0450_13_2024_1.12 w © UCLES 2024 am -m at ........................................................................................................................................... m Reason 4: ......................................................................................................................... 10 (d) Using Table 4.1, explain two reasons why MTO should select applicant A as its new manager. Reason 1: ......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Explain two reasons why a business might want to grow. Which reason is likely to be the most important? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] w w .e x 06_0450_13_2024_1.12 w © UCLES 2024 am -m at e. co ........................................................................................................................................... 11 w w .e x 06_0450_13_2024_1.12 w © UCLES 2024 am -m at e. co m BLANK PAGE 12 BLANK PAGE co e. at To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. m Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. w w .e x 06_0450_13_2024_1.12 w © UCLES 2024 am -m Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. * 0000800000001 * , , ™ Cambridge IGCSE ¬Xw@4mIsQ¢M@z6W ¬NHElLk{v>PFJ ¥eeueEuuU¥ ¥UuU Paper 1 Short Answer and Data Response October/November 2024 1 hour 30 minutes You must answer on the question paper. No additional materials are needed. INSTRUCTIONS • Answer all questions. • Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs. • Write your name, centre number and candidate number in the boxes at the top of the page. • Write your answer to each question in the space provided. • Do not use an erasable pen or correction fluid. • Do not write on any bar codes. • You may use a calculator. m INFORMATION • The total mark for this paper is 80. • The number of marks for each question or part question is shown in brackets [ ]. w .e x [Turn over w 11_0450_11_2024_1.12 © UCLES 2024 am -m at e. co This document has 12 pages. Any blank pages are indicated. w *6879993404* 0450/11 BUSINESS STUDIES * 0000800000002 * 1 DO NOT WRITE IN THIS MARGIN , 2 , RSL manufactures paint using flow production. Last year it produced 10 million litres of paint. RSL has 6 managers and 80 employees working in its factory. The managers use different leadership styles. RSL uses email and telephone calls as its methods of internal communication. The Operations Manager wants to understand why some manufacturing businesses are relocating their operations to other countries. (a) Identify two benefits to a business of using flow production. Benefit 1: .......................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... Benefit 2: .......................................................................................................................... ........................................................................................................................................... [2] (b) Identify two reasons why people work. Reason 1: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN Reason 2: ......................................................................................................................... [2] (c) Outline one advantage of RSL using each of the following methods of internal communication. Email: ................................................................................................................................ ........................................................................................................................................... ........................................................................................................................................... Telephone calls: ................................................................................................................ ........................................................................................................................................... ........................................................................................................................................... [4] w .e x 11_0450_11_2024_1.12 w ĬÖ÷Àĝ´íÉóÑĢÍĊ½ü¸ý× ĬÎÆĂÈđàÞÔĆĄööæäîÂĂ ĥõµĕµõĥõõµåĕĥÅąĕÕÕ w © UCLES 2024 am -m at e. co m ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN * 0000800000003 * , 3 , (d) Explain two leadership styles RSL’s managers might use. Leadership style 1: ........................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Leadership style 2: ........................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Explain two factors a manufacturing business should consider when relocating its operations to another country. Which factor is likely to be the most important? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] [Turn over .e x 11_0450_11_2024_1.12 w ĬØ÷Àĝ´íÉóÑĢÍĊ½ú¸ý× ĬÎÅāÀėäÎåôí³âÎøî²Ă ĥõÅÕõĕąĕĥÅõĕĥåĥÕÅÕ w © UCLES 2024 am -m at e. co ........................................................................................................................................... w DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... * 0000800000004 * 2 DO NOT WRITE IN THIS MARGIN , 4 , Mitchell is an entrepreneur. He wants to start up a business selling books. As part of his business plan Mitchell has carried out some market research. An extract is shown in Fig. 2.1. Mitchell will use microfinance as a source of finance. He wants to know whether the opportunities of using ecommerce for a new business are greater than the threats. Extract from Mitchell’s market research data for 2023 Chart 1: Type of people reading books Chart 2: Book sales by type (million) Older people 27% Adults 20% DO NOT WRITE IN THIS MARGIN 60 50 40 30 20 DO NOT WRITE IN THIS MARGIN Hardbacks Paperbacks 0 Audio books Children 35% 10 Electronic books Students 18% Fig. 2.1 DO NOT WRITE IN THIS MARGIN (a) Define ‘entrepreneur’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Define ‘business plan’. ........................................................................................................................................... co e. [2] w .e x 11_0450_11_2024_1.12 w ĬÖ÷Àĝ´íÉóÑĢÍĊ¿ü¸ÿ× ĬÎÅĄÀčÒÛÒîö¼ĄòÖĞÊĂ ĥÅĕÕµĕąµąĥąĕååÅÕÕÕ w © UCLES 2024 am -m at ........................................................................................................................................... m ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN * 0000800000005 * , 5 , (c) Outline one advantage and one disadvantage to Mitchell of using microfinance as a source of finance. Advantage: ....................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... Disadvantage: ................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] (d) Explain how the market research data in Chart 1 and Chart 2 in Fig. 2.1 could help Mitchell when making decisions. Chart 1: ............................................................................................................................. ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] [Turn over .e x 11_0450_11_2024_1.12 w ĬØ÷Àĝ´íÉóÑĢÍĊ¿ú¸ÿ× ĬÎÆăÈěÎëçČċíØĊĂĞºĂ ĥÅĥĕõõĥÕĕĕÕĕåÅåĕÅÕ w © UCLES 2024 am -m at e. co m ........................................................................................................................................... w DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN Chart 2: ............................................................................................................................. * 0000800000006 * DO NOT WRITE IN THIS MARGIN , 6 , (e) Do you think the opportunities of ecommerce for a new business are greater than the threats? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... [6] w .e x 11_0450_11_2024_1.12 w ĬÚ÷Àĝ´íÉóÑĢÍĊ¾úµý× ĬÎÅăËđ¶áßÿúĈ¸òģÆÊĂ ĥĕÅĕõÕĥõÕõõĕĥÅąÕĕÕ w © UCLES 2024 am -m at e. co m DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN * 0000800000007 * , 3 7 , JTA is a public limited company. It sells holidays in a mass market. The business has 44 shops and 200 employees. The Finance Director is considering ways a business can increase its profit. She has been asked to analyse JTA’s financial performance using ratio analysis. An extract from JTA’s financial statements is shown in Table 3.1. Table 3.1 Extract from JTA’s financial statements for 2023 ($ million) Revenue 900 Profit 100 Capital employed 800 (a) Define ‘capital employed’. ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... (b) Calculate JTA’s return on capital employed (ROCE). Show your working. Working: ........................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Final answer: .................................................................................................................... DO NOT WRITE IN THIS MARGIN [2] [2] (c) Outline two benefits to JTA of selling in a mass market. Benefit 1: .......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... co [4] [Turn over .e x 11_0450_11_2024_1.12 w ĬÜ÷Àĝ´íÉóÑĢÍĊ¾üµý× ĬÎÆĄÃėºÑÚùćÁĤĊ·ÆºĂ ĥĕµÕµµąĕÅąåĕĥåĥĕąÕ w © UCLES 2024 am -m at e. ........................................................................................................................................... m ........................................................................................................................................... w DO NOT WRITE IN THIS MARGIN Benefit 2: .......................................................................................................................... * 0000800000008 * DO NOT WRITE IN THIS MARGIN , 8 , (d) Explain one advantage and one disadvantage of JTA being a public limited company. Advantage: ....................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... Disadvantage: ................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... [6] (e) Do you think increasing prices is the best way for a business to increase its profit? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... co e. [6] w .e x 11_0450_11_2024_1.12 w ĬÚ÷Àĝ´íÉóÑĢÍĊÀúµÿ× ĬÎÆāÃčÌØÝ÷ĀÊÂæĕÖÂĂ ĥåĥÕõµąµååÕĕååÅĕĕÕ w © UCLES 2024 am -m at ........................................................................................................................................... m ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN * 0000800000009 * , 4 9 , FSW is a multinational company with operations in 6 countries. It manufactures steel for use in the construction industry. Quality assurance is used to ensure quality production. FSW has many stakeholder groups who are interested in its activities. The Managing Director knows FSW’s business creates external costs. She is aware that pressure groups try to influence business decisions. (a) Define ‘external costs’. ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify one objective each of the following stakeholder groups might have: Employees: ....................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN Customers: ....................................................................................................................... ........................................................................................................................................... [2] (c) Identify four ways a pressure group might try to influence business decisions. Way 1: ............................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... Way 3: ............................................................................................................................... ........................................................................................................................................... Way 4: ............................................................................................................................... [4] [Turn over .e x 11_0450_11_2024_1.12 w ĬÜ÷Àĝ´íÉóÑĢÍĊÀüµÿ× ĬÎÅĂËěÈèÜāñÿĖÎÁÖ²Ă ĥåĕĕµÕĥÕµÕąĕåÅåÕąÕ w © UCLES 2024 am -m at e. co m ........................................................................................................................................... w DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... * 0000800000010 * DO NOT WRITE IN THIS MARGIN , 10 , (d) Explain one possible benefit and one possible drawback to a country of having FSW (a multinational company) operating there. Benefit: ............................................................................................................................. ........................................................................................................................................... Explanation: ...................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Drawback: ......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think quality assurance is the best way for a business to achieve quality production? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... co e. [6] w .e x 11_0450_11_2024_1.12 w ĬÚ÷Àĝ´íÉóÑĢÍĊ½ú·ý× ĬÎÇāÊďÄÂãðćĤÞèñĞºĂ ĥõąĕõµåµąĕÕÕåąÅĕåÕ w © UCLES 2024 am -m at ........................................................................................................................................... m ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... * 0000800000012 * DO NOT WRITE IN THIS MARGIN , 12 , co e. at To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. m Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. w .e x 11_0450_11_2024_1.12 w ĬÚ÷Àĝ´íÉóÑĢÍĊ¿ú·ÿ× ĬÎÈăÂē®·áĈñÞÜôćî²Ă ĥÅåÕõÕÅõõÅõÕĥĥąÕåÕ w © UCLES 2024 am -m Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN BLANK PAGE * 0000800000001 * , , ™ Cambridge IGCSE ¬Xw@4nFyU¢=`fW ¬¡Q§48¨UZmn¡Hi£Fc ¥ UuuE5UuU ¥U Paper 1 Short Answer and Data Response October/November 2024 1 hour 30 minutes You must answer on the question paper. No additional materials are needed. INSTRUCTIONS • Answer all questions. • Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs. • Write your name, centre number and candidate number in the boxes at the top of the page. • Write your answer to each question in the space provided. • Do not use an erasable pen or correction fluid. • Do not write on any bar codes. • You may use a calculator. m INFORMATION • The total mark for this paper is 80. • The number of marks for each question or part question is shown in brackets [ ]. w .e x [Turn over w 11_0450_12_2024_1.10 © UCLES 2024 am -m at e. co This document has 12 pages. Any blank pages are indicated. w *4158426049* 0450/12 BUSINESS STUDIES * 0000800000002 * 1 DO NOT WRITE IN THIS MARGIN , 2 , Avtar owns a car repair business which operates in the private sector. It is a small business with 2 full-time employees. Avtar wants to find out the best way for a business to increase added value. Avtar’s business needs finance for many reasons. Avtar wants to know how an economic recession might affect his business. (a) Identify two features of a private sector business. Feature 1: ......................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... Feature 2: ......................................................................................................................... ........................................................................................................................................... [2] (b) Identify two reasons why a business might remain small. Reason 1: ......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN Reason 2: ......................................................................................................................... [2] (c) Outline one reason why Avtar might need each of the following types of finance: Short-term finance: ........................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Long-term finance: ............................................................................................................ ........................................................................................................................................... ........................................................................................................................................... [4] w .e x 11_0450_12_2024_1.10 w ĬÖ÷Àĝ´îÆùÕĢ½ĊÝĊèý× ĬġÓĨ±´Ĥ³áĄČþðÓÓîëĂ ĥÅĕÕµĕąõåõÅĕõĕõÅÅÕ w © UCLES 2024 am -m at e. co m ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN * 0000800000003 * , 3 , (d) Explain two ways an economic recession might affect Avtar’s business. Way 1: ............................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Explain two ways a business can increase added value. Which is likely to be the best way for a business to use? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] [Turn over .e x 11_0450_12_2024_1.10 w ĬØ÷Àĝ´îÆùÕĢ½ĊÝČèý× ĬġÔħ¹¶ĠÃØöõËìëćîÛĂ ĥÅĥĕõõĥĕµąĕĕõõĕąÕÕ w © UCLES 2024 am -m at e. co ........................................................................................................................................... w DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... * 0000800000004 * 2 DO NOT WRITE IN THIS MARGIN , 4 , SNT is an ethical business. It manufactures a range of soft drinks using batch production. In 2023 SNT produced 300 000 bottles of soft drinks each week. There are many factors which affect how much inventory the business should hold. SNT’s directors are planning to expand the business into new markets in other countries by forming a joint venture. They are considering licensing as another way to help overcome the potential problems of entering these new markets. (a) Define ‘licensing’. ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two factors which might affect how much inventory a business should hold. Factor 1: ........................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN Factor 2: ........................................................................................................................... [2] (c) Outline two benefits to SNT of using batch production. Benefit 1: .......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Benefit 2: .......................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w .e x 11_0450_12_2024_1.10 w ĬÖ÷Àĝ´îÆùÕĢ½ĊßĊèÿ× ĬġÔĦ¹°ĎÆãüîÄĊćåĞãĂ ĥõµĕµõĥµÕåĥĕµõµąÅÕ w © UCLES 2024 am -m at e. co m ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN * 0000800000005 * , 5 , (d) Explain one advantage and one disadvantage to SNT of forming a joint venture when entering new markets in other countries. Advantage: ....................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Disadvantage: ................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think the advantages to a business of being ethical are greater than the disadvantages? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... e. co [6] [Turn over .e x 11_0450_12_2024_1.10 w ĬØ÷Àĝ´îÆùÕĢ½ĊßČèÿ× ĬġÓĥ±ºĒ¶ÖþăąÎïñĞÓĂ ĥõÅÕõĕąÕÅÕµĕµĕÕÅÕÕ w © UCLES 2024 am -m at ........................................................................................................................................... m ........................................................................................................................................... w DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... * 0000800000006 * 3 DO NOT WRITE IN THIS MARGIN , 6 , HRO manufactures children’s toys. It is a private limited company. The main objective of HRO’s shareholders is to increase profit. This might conflict with the objectives of other stakeholder groups, including its 30 suppliers. HRO’s Managing Director knows that market research can help when making marketing decisions. The Finance Director is preparing HRO’s statement of financial position. An extract is shown in Table 3.1. Table 3.1 Non-current assets 480 Current assets 250 Current liabilities 200 Non-current liabilities 300 DO NOT WRITE IN THIS MARGIN Extract from HRO’s statement of financial position at 30 June 2024 ($000s) (a) Define ‘non-current assets’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... [2] (b) Calculate HRO’s current ratio. Show your working. Working: ........................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] DO NOT WRITE IN THIS MARGIN Final answer: .................................................................................................................... (c) State whether each of the following would be classified as a current asset or as a current liability. Trade receivables: ............................................................................................................ ........................................................................................................................................... Trade payables: ................................................................................................................ ........................................................................................................................................... ........................................................................................................................................... Inventory: .......................................................................................................................... co m [4] w .e x 11_0450_12_2024_1.10 w ĬÚ÷Àĝ´îÆùÕĢ½ĊÞČåý× ĬġÔĥ®´ú°Îĉòð®ćĔÆãĂ ĥåĥÕõµąõąµĕĕõĕõąąÕ w © UCLES 2024 am -m at e. ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN Overdraft: .......................................................................................................................... DO NOT WRITE IN THIS MARGIN * 0000800000007 * , 7 , (d) Explain one way the objective of HRO’s shareholders to increase profit might conflict with the objectives of each of the following stakeholder groups: Customers: ....................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Suppliers: .......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think the advantages to a business of using primary market research are greater than the disadvantages? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... e. co [6] [Turn over .e x 11_0450_12_2024_1.10 w ĬÜ÷Àĝ´îÆùÕĢ½ĊÞĊåý× ĬġÓĦ¶¶öÀëïÿ¹ĪïÈÆÓĂ ĥåĕĕµÕĥĕĕÅÅĕõõĕÅĕÕ w © UCLES 2024 am -m at ........................................................................................................................................... m ........................................................................................................................................... w DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... * 0000800000008 * 4 DO NOT WRITE IN THIS MARGIN , 8 , TLA is a large hotel with 200 rooms and 3000 employees. Many of these employees are members of a trade union. The Managing Director is planning to expand the business but is worried about possible diseconomies of scale as TLA grows. The Human Resources Director has been asked to recruit 2 new managers. She knows it is important that all managers use the most appropriate leadership style. All of TLA’s new employees receive induction training. (a) Identify one advantage and one disadvantage to employees of being members of a trade union. DO NOT WRITE IN THIS MARGIN Advantage: ....................................................................................................................... ........................................................................................................................................... Disadvantage: ................................................................................................................... ........................................................................................................................................... [2] (b) Identify one benefit and one limitation of a business using induction training. Benefit: ............................................................................................................................. DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... Limitation: ......................................................................................................................... ........................................................................................................................................... [2] (c) Outline one reason why each of the following stages of recruitment might be important for TLA: Job description: ................................................................................................................ ........................................................................................................................................... ........................................................................................................................................... Job advertisement: ........................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] w .e x 11_0450_12_2024_1.10 w ĬÚ÷Àĝ´îÆùÕĢ½ĊàČåÿ× ĬġÓħ¶°ĈÉÐñĈ²ÌÓĦÖëĂ ĥĕÅĕõÕĥµõĥµĕµõµÅąÕ w © UCLES 2024 am -m at e. co m ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN * 0000800000009 * , 9 , (d) Explain two possible diseconomies of scale as TLA grows. Diseconomy of scale 1: .................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Diseconomy of scale 2: .................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think the advantages of managers using a democratic leadership style are greater than the disadvantages for a business? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... m [6] .e x 11_0450_12_2024_1.10 w ĬÜ÷Àĝ´îÆùÕĢ½ĊàĊåÿ× ĬġÔĨ®ºČ¹éćù÷Đë²ÖÛĂ ĥĕµÕµµąÕĥĕĥĕµĕÕąĕÕ w © UCLES 2024 am -m at e. co ........................................................................................................................................... w DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... * 0000800000012 * DO NOT WRITE IN THIS MARGIN , 12 , co e. at To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. m Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. w .e x 11_0450_12_2024_1.10 w ĬÚ÷Àĝ´îÆùÕĢ½ĊßČçÿ× ĬġÑĥ·²òêÔĂùÖÒąøîÛĂ ĥõąĕõµåõåąĕÕõµõąµÕ w © UCLES 2024 am -m Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN BLANK PAGE * 0000800000001 * , , ™ Cambridge IGCSE ¬Xw@4mIsQ¢M@z6W ¬NHElLk{v>PFJ ¥eeueEuuU¥ ¥UuU Paper 1 Short Answer and Data Response October/November 2024 1 hour 30 minutes You must answer on the question paper. No additional materials are needed. INSTRUCTIONS • Answer all questions. • Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs. • Write your name, centre number and candidate number in the boxes at the top of the page. • Write your answer to each question in the space provided. • Do not use an erasable pen or correction fluid. • Do not write on any bar codes. • You may use a calculator. m INFORMATION • The total mark for this paper is 80. • The number of marks for each question or part question is shown in brackets [ ]. w .e x [Turn over w 11_0450_13_2024_1.19 © UCLES 2024 am -m at e. co This document has 12 pages. Any blank pages are indicated. w *7815031727* 0450/13 BUSINESS STUDIES * 0000800000002 * 1 DO NOT WRITE IN THIS MARGIN , 2 , BPT manufactures bicycles in country A. It uses batch production. The Operations Director is preparing a break-even chart for one of BPT’s bicycles, as shown in Fig. 1.1. The directors are considering ways to lower BPT’s break-even level of output. BPT imports 60% of its raw materials and exports its bicycles to 8 countries. The Managing Director wants to know how a depreciation in country A’s exchange rate and the introduction of import tariffs might affect BPT. Partly completed break-even chart for one of BPT’s bicycles 250 000 DO NOT WRITE IN THIS MARGIN 300 000 Y 200 000 X DO NOT WRITE IN THIS MARGIN costs and revenue $ 150 000 100 000 50 000 0 50 100 150 200 250 300 DO NOT WRITE IN THIS MARGIN 0 output in units Fig. 1.1 (a) Identify the lines labelled X and Y in Fig. 1.1. X: ...................................................................................................................................... ........................................................................................................................................... [2] w .e x 11_0450_13_2024_1.19 w ĬÖ÷Àĝ´íÉóÑĢÍĊ½ü¸ý× ĬÎÆĂÈđàÞÔĆĄööæäîÂĂ ĥõµĕµõĥõõµåĕĥÅąĕÕÕ w © UCLES 2024 am -m at e. co m ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN Y: ...................................................................................................................................... DO NOT WRITE IN THIS MARGIN * 0000800000003 * , 3 , (b) Define ‘import tariff’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... [2] (c) Outline two ways BPT could lower its break-even level of output. Way 1: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN Way 2: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] (d) Explain two ways a depreciation in country A’s exchange rate might affect BPT. Way 1: ............................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... e. [6] [Turn over .e x 11_0450_13_2024_1.19 w ĬØ÷Àĝ´íÉóÑĢÍĊ½ú¸ý× ĬÎÅāÀėäÎåôí³âÎøî²Ă ĥõÅÕõĕąĕĥÅõĕĥåĥÕÅÕ w © UCLES 2024 am -m at ........................................................................................................................................... co m ........................................................................................................................................... w DO NOT WRITE IN THIS MARGIN Explanation: ...................................................................................................................... * 0000800000004 * DO NOT WRITE IN THIS MARGIN , 4 , (e) Do you think batch production is the best method of production for a business to use? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... [6] w .e x 11_0450_13_2024_1.19 w ĬÖ÷Àĝ´íÉóÑĢÍĊ¿ü¸ÿ× ĬÎÅĄÀčÒÛÒîö¼ĄòÖĞÊĂ ĥÅĕÕµĕąµąĥąĕååÅÕÕÕ w © UCLES 2024 am -m at e. co m DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN * 0000800000005 * , 2 5 , Ramon is an entrepreneur. He plans to start up a home tutoring service to provide students with extra help to learn maths. Ramon is considering buying a franchise. He has prepared a business plan but is concerned about how an increase in the rate of inflation might affect his business. Ramon wants to know whether crowdfunding is the best source of finance for a start-up business to use. (a) Define ‘inflation’. ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two characteristics of a successful entrepreneur. Characteristic 1: ................................................................................................................ DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... Characteristic 2: ................................................................................................................ ........................................................................................................................................... [2] (c) Outline two ways a business plan might help Ramon. Way 1: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Way 2: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] [Turn over .e x 11_0450_13_2024_1.19 w ĬØ÷Àĝ´íÉóÑĢÍĊ¿ú¸ÿ× ĬÎÆăÈěÎëçČċíØĊĂĞºĂ ĥÅĥĕõõĥÕĕĕÕĕåÅåĕÅÕ w © UCLES 2024 am -m at e. co m ........................................................................................................................................... w DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... * 0000800000006 * DO NOT WRITE IN THIS MARGIN , 6 , (d) Explain one advantage and one disadvantage to Ramon of buying a franchise. Advantage: ....................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... Disadvantage: ................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... [6] (e) Do you think crowdfunding is the best source of finance for a start-up business to use? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... co e. [6] w .e x 11_0450_13_2024_1.19 w ĬÚ÷Àĝ´íÉóÑĢÍĊ¾úµý× ĬÎÅăËđ¶áßÿúĈ¸òģÆÊĂ ĥĕÅĕõÕĥõÕõõĕĥÅąÕĕÕ w © UCLES 2024 am -m at ........................................................................................................................................... m ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... , 3 7 , LRL makes skincare products including face cream. It is a private sector business in country X. One of LRL’s objectives is to contribute to sustainable development. Maintaining customer loyalty is important and the Marketing Director knows a business must have an appropriate marketing mix. He is analysing data to calculate the value of LRL’s market share. An extract is shown in Fig. 3.1. The total value of sales of skincare products in country X for 2023 was $120 million. Market share data for skincare products in country X in 2023 (%) DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN * 0000800000007 * DO NOT WRITE IN THIS MARGIN Others 35% LRL 30% Competitor B 15% Competitor A 20% Fig. 3.1 DO NOT WRITE IN THIS MARGIN (a) Define ‘private sector’. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Calculate the value of LRL’s market share in 2023. ........................................................................................................................................... ........................................................................................................................................... m [2] [Turn over .e x 11_0450_13_2024_1.19 w ĬÜ÷Àĝ´íÉóÑĢÍĊ¾üµý× ĬÎÆĄÃėºÑÚùćÁĤĊ·ÆºĂ ĥĕµÕµµąĕÅąåĕĥåĥĕąÕ w © UCLES 2024 am -m at e. co Final answer: .................................................................................................................... w DO NOT WRITE IN THIS MARGIN Working: ........................................................................................................................... * 0000800000008 * DO NOT WRITE IN THIS MARGIN , 8 , (c) Outline two ways LRL could contribute to sustainable development. Way 1: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN Way 2: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [4] (d) Explain two advantages to LRL of maintaining customer loyalty. Advantage 1: .................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Advantage 2: .................................................................................................................... Explanation: ...................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] w .e x 11_0450_13_2024_1.19 w ĬÚ÷Àĝ´íÉóÑĢÍĊÀúµÿ× ĬÎÆāÃčÌØÝ÷ĀÊÂæĕÖÂĂ ĥåĥÕõµąµååÕĕååÅĕĕÕ w © UCLES 2024 am -m at e. co m ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN * 0000800000009 * , 9 , (e) Explain two elements of the marketing mix. Which do you think is the most important element for a business? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] m co e. at -m am [Turn over .e x 11_0450_13_2024_1.19 w ĬÜ÷Àĝ´íÉóÑĢÍĊÀüµÿ× ĬÎÅĂËěÈèÜāñÿĖÎÁÖ²Ă ĥåĕĕµÕĥÕµÕąĕåÅåÕąÕ w © UCLES 2024 w DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... * 0000800000010 * 4 DO NOT WRITE IN THIS MARGIN , 10 , RHN is a clothing retailer. It has 50 shops and 290 employees. All RHN’s employees are provided with training. Commission is used as one method of financial reward. The business often uses internal recruitment when there is a job vacancy. Last year RHN made a profit of $1.5 million. The Managing Director, as an internal user of accounts, has been analysing RHN’s statement of financial position. (a) Define ‘commission’. ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [2] (b) Identify two external users of accounts. External user 1: ................................................................................................................ ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN External user 2: ................................................................................................................ [2] (c) Identify four ways the information in a statement of financial position can be used. Way 1: ............................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Way 3: ............................................................................................................................... ........................................................................................................................................... Way 4: ............................................................................................................................... [4] w .e x 11_0450_13_2024_1.19 w ĬÚ÷Àĝ´íÉóÑĢÍĊ½ú·ý× ĬÎÇāÊďÄÂãðćĤÞèñĞºĂ ĥõąĕõµåµąĕÕÕåąÅĕåÕ w © UCLES 2024 am -m at e. co m ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN Way 2: ............................................................................................................................... DO NOT WRITE IN THIS MARGIN * 0000800000011 * , 11 , (d) Explain two possible reasons why providing training for its employees is important to RHN. Reason 1: ......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... Reason 2: ......................................................................................................................... ........................................................................................................................................... Explanation: ...................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... [6] (e) Do you think the advantages for a business of using internal recruitment are greater than the disadvantages? Justify your answer. ........................................................................................................................................... ........................................................................................................................................... DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... co e. [6] .e x 11_0450_13_2024_1.19 w ĬÜ÷Àĝ´íÉóÑĢÍĊ½ü·ý× ĬÎÈĂÂęÀ²ÖĊúåúÐåĞÊĂ ĥõõÕµÕÅÕĕĥąÕåĥåÕµÕ w © UCLES 2024 am -m at ........................................................................................................................................... m ........................................................................................................................................... w DO NOT WRITE IN THIS MARGIN ........................................................................................................................................... * 0000800000012 * DO NOT WRITE IN THIS MARGIN , 12 , co e. at To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. m Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. w .e x 11_0450_13_2024_1.19 w ĬÚ÷Àĝ´íÉóÑĢÍĊ¿ú·ÿ× ĬÎÈăÂē®·áĈñÞÜôćî²Ă ĥÅåÕõÕÅõõÅõÕĥĥąÕåÕ w © UCLES 2024 am -m Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN DO NOT WRITE IN THIS MARGIN BLANK PAGE

IGCSE Business Studies Paper 1 Exam (2022-2024)

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