Business studies

27: Exam technique Comments on part (a): i The words have simply been reordered. This answer hasn’t actually explained the term, so no credit can be given. ii This response gives a clear explanation. Remember it doesn’t have to be a textbook definition to get both marks. iii This shows some understanding, but the link to level of output hasn’t been made. b Calculate the weekly total costs of the new airport service. [2] Answer: Total costs = fixed costs + variable costs $500 + (20 × 20) $500 + $400 Total costs = $900 Sample answers (written by the authors): 349 i TC = FC + $40 ii $1,000 iii TC = total fixed costs + total variable costs = 500 + 400 Comments on part (b): i The formula is incomplete, and $40 is wrong as it should be $400. Always include all your workings to maximise your chances of success. ii This response has calculated total revenue, which is not the question set. iii The formula is correct, so could be rewarded. It has used the right numbers but the final answer has not been calculated, which the question requires. Note: For any numerical question, it is important to include the units. For example some ratios such as gross profit margin are expressed as a percentage. If you don’t include the % symbol, it might suggest that you don’t fully understand the method. So you should always include the units as it is an important part of the answer. c Identify and explain two ways the size of Omar’s business [4] can be measured. Extract from sample mark scheme: Knowledge [2 × 1] – award 1 mark for each relevant way [max 2]. Application [2 × 1] – award 1 mark for each relevant explanation in context.

Cambridge IGCSE Business Studies 27: Exam technique Relevant points might include: ■ Number of employees [k] – Omar only employs three drivers, so with so few drivers he cannot really be described as a large business. ■ Capital employed [k] – as Omar is a sole trader he is not likely to have large amounts of capital employed. ■ Level of revenue [k] – with only three drivers, he is not likely to be able to have a large level of sales as they can only drive for a certain number of miles before they have to rest. ■ Market share [k] – with only three drivers, it is unlikely to be the largest taxi business in the city so it won’t have a lot of passengers. Application could include reference to: sole trader; taxi business; cars; drivers; journeys; mileage; passengers. Sample answer (written by the authors): Way 1: the number of employees Explanation: Omar only has three employees. A larger business would have many more drivers so he can operate more taxis to get more passengers. 350 Way 2: profits Explanation: Omar’s profits have increased for the past five years, but he still doesn’t have a lot of money to invest in the business as he is thinking of taking out a loan to buy the new car. Comments on part (c): Way 1: This response has identified employees as a measure, and by linking it to both the idea of drivers and three employees it is clearly applied. Way 2: Profit is not accepted as a measure of size, as there are too many other factors that can affect whether a business makes a profit. The explanation does not include any valid points as it is still focused on profit. d Identify and explain two ways that Call4Cabs could promote [6] this new service. Extract from sample mark scheme: Knowledge [2 × 1] – award 1 mark for each relevant way [max 2]. Application [2 × 1] – award 1 mark for each relevant reference to Call4Cabs. Analysis [2 × 1] – award 1 mark for each relevant explanation.

27: Exam technique Relevant points might include: ■ Leaflets [k] – Omar could have leaflets in his taxis which he could hand out to existing customers [app]; this means he is targeting his promotion at people who already trust his business [an]. ■ Specialist wedding or magazines [k] – this will target his promotion at people who want to use a chauffeur service as it is not something people will use every day [an]. ■ Price promotions [k] – he could offer people discounts on the chauffeur service to encourage people to try out the new service [an]. ■ Radio [k] – many local people listen to the radio, so it’s a good way to raise awareness [an]. ■ Fliers [k] – these could be handed out at wedding fairs [app] as this is where people who might use a chauffeur service would go to find out which companies offer this service [an]. ■ BOGOF [k] – if people use the service Omar could offer them a free taxi ride [app] this would encourage people to try the new service as they are getting something extra as well [an]. ■ Internet [k] – everyone uses the internet these days so there is a wider target market to appeal to [an]. ■ Advertise it on the taxis [k] as there are lots of people in a large city [app] who might see the advert and be interested [an]. 351 Sample answer (written by the authors): Way 1: Advertise it in local newspapers. Explanation: So the potential customer will read it as it is a habit where they are able to notice the advertisement. They are able to keep it so they will call the Call4Cabs number anytime they want to use the service. Way 2: Promote it on the side of the taxis Explanation: As in the city there are likely to be many people who could see the advert when the taxi drives past so it increases their awareness of the new service. Comments on part (d): Way 1: The first method is valid, and an advantage of it has been explained. However this could apply to any business so there is no application to Call4Cabs. Remember the name alone is not application. Way 2: The second has linked the idea of Call4Cabs being in a city, so there would be plenty of people to see the advertisement. This is a relevant point for this type of business.

Cambridge IGCSE Business Studies 27: Exam technique Note: As in this example, both parts (c) and (d) of a question may contain the word ‘explain’. To understand the level of detail required, always check how many marks are available. In the measurement of size question, there are only 4 marks, so a simple (relevant) explanation is all that is needed. If it was a 6-mark question, the answer should be developed further. These types of questions could also be asked as part of a case study question. The only difference is that they will have more marks allocated to them. This means that you have to develop your answers even more. For example, a more detailed explanation of level of revenue might be: Level of revenue with only three drivers, he is not likely to be able to have a large level of sales as they can only drive for a certain number of miles before they have to rest. If Omar had more drivers, he could offer more passengers taxi journeys, which could increase the level of sales turnover. Don’t worry as there will be plenty of information in the case study that you can use. e Omar could use a long-term loan to buy the vehicle or he could [6] lease a luxury car. Which do you think is the better option for his business? Justify your choice. Extract from sample mark scheme: Knowledge [1] – award 1 mark for identification of relevant issue [max 1]. 352 Application [1] – award 1 mark if relevant reference made to Omar’s business. Analysis [2] – award up to 2 marks for relevant development of point(s). Evaluation [2] – justified decision as to which is the better option for Omar to choose. Relevant points might include: Leasing ■ Pay month by month for the use of the car [k]. ■ Never own the asset [k] so has no fixed asset to sell if needed at the end of the lease. ■ Costs of repair and maintenance is carried out by leasing company [k] so lower variable costs for Omar [an]. ■ Leasing charges can be high [k] so he might end up paying out more than total cost of buying the vehicle [an]. Long-term loan ■ Have to pay interest and repay the loan [k], which will increase costs. ■ Have asset which can be sold afterwards [k]. ■ Bank might want security against Omar’s assets [k], so Omar might lose his personal possessions if he cannot repay [an] as he is a sole trader [app].

27: Exam technique Sample answer (written by the authors): I think he should lease the vehicle. Leasing means he won’t have to find a large sum of money straightaway. Even though he never owns it, so he doesn’t have a fixed asset that he can sell, he won’t have a large debt to repay which he would have if he took the loan. He might have five years of profit but this was for the taxi profits. This is a new service, so there is no guarantee that he will get enough customers who want to use it. If that’s the case, he can return the lease car, but if he has the loan, he is stuck with a vehicle and a large loan. If he can’t repay the loan, the bank could take his personal assets away as he is a sole trader. So I think leasing is better as it’s less risky for him. Comments on part (e): The answer starts with an evaluative comment which is backed up by points made. The references to ‘new service’ and ‘taxi profits’ show good application. There are a number of knowledge points included both for and against each method, which have been developed to show why they are issues that could influence Omar’s choice. How to approach case study questions 353 There are some simple points to remember when answering case study questions. ■ Always start by reading through the case study insert before you start to answer any questions. When reading, make a note of any important details that you find out. Like the short answer paper, this gives valuable background information about this specific business. For every case study question, you must base your answers on the information in the case study. Use the information provided to help you when you write your answer. Try to avoid making general statements – make sure all points are relevant to this business. ■ Don’t write any answers on the insert as this will not be marked. Remember to write all your answers in the answer booklet. ■ When answering the longest questions it is sensible to try to prepare a brief plan before you start writing. This can help you focus your answer on the particular question set. All case study questions require more development. This means you will need to expand your explanations, so don’t just write down a list of points. Try to think in terms of what each point means and how this could affect the business. In most instances, you only need to discuss three or four points (depending on the question). Knowledge is usually only level 1, if you aiming for a top-level grade you will need to show analysis and evaluation as well.

Cambridge IGCSE Business Studies 27: Exam technique Read the following extract from a sample case study paper. (In the actual exam, there would be three appendices as well.) Early Riders is a private limited company. The business manufactures various styles and sizes of children’s bicycles, using batch production. These bicycles are sold to a number of large retail shops around the world. Early Riders is thinking of moving its operations to another country, due to increasing costs and new government legislation. ‘Laws just mean extra costs, and I am determined to keep our profit margin high,’ said the Finance Director. The business is located on the edge of the capital city in Country X near to a small airport. The components to make the bicycles are purchased from local suppliers, but some items, such as tyres, are imported to ensure the quality is good. Early Riders employs 75 production workers and 15 office workers. The employees in the production department are all unskilled, have had little training and are paid by time rate. The management style is autocratic. The working conditions are good but each worker does the same job every day. The Human Resources Director is worried about the number of workers leaving each year. a Identify and explain one advantage and one disadvantage to [8] Early Riders of using batch production. b The Human Resources Director is worried that a high number of 354 workers leave the company each year because of poor motivation. Consider three different methods that Early Riders could use to increase motivation of the production workers. Recommend which method you think will be the most effective. Justify your answer. [12] Tips for answering these questions ■ For part (a) you don’t have to define batch production. Don’t include two possible advantages (or disadvantages). Make sure you place your answer under the right heading. ■ Part (b) gives you the choice. Remember this is a manufacturing business so options such as commission are not appropriate. Don’t list lots of options, just focus on three. Explain why you think each method might help increase motivation. Think about the disadvantages and advantages of each method. In your evaluation, make a choice and say why this method is better than the other two options that you have considered. ACTIVITY 27.2 Read the following sample answers (written by the authors). How many marks would you give each of the following responses to the questions above? Extracts of the mark scheme are included to help you decide. Afterwards, compare the marks you would give with the comments provided.

27: Exam technique a Identify and explain one advantage and one disadvantage [8] to Early Riders of using batch production. Extract from sample mark scheme: 355 Knowledge [2 × 1] – award one mark for each relevant advantage or disadvantage identified [max 2]. Analysis [2 × 1] – award one mark for a relevant explanation for each advantage/disadvantage. Application [2 × 2] – award two application marks for each relevant advantage/disadvantage. Relevant advantages might include: ■ Batch production is a flexible way of working [k] this will help the company respond effectively to any sudden change in demand for one particular style or size of bicycle [app]. By switching production to these models [app] sales will increase leading to higher revenue/profits [an]. ■ Workers will have some variety of jobs [k] so this should make the work more interesting and increase job satisfaction [an]; this is important as workers being more motivated increases efficiency. ■ Movement of part finished bikes or finished bikes is reduced [k / app] this makes production faster and more efficient [an] so helping to eliminate waste, helping to keep the profit margin high [app]. Disadvantages might include: ■ Batch production can be expensive [k] as more equipment may need to be purchased which will increase the amount of training needed [an]. This could be a problem as it will increase costs, which could reduce the profit margin even further [app]. ■ Increased storage costs [k] as more warehouse space is required for parts and finished bikes [app] to be stored while they are waiting to be finished or sent to the large stores [app]. ■ Time delay due to switching between batches [k] might mean that at busy times they might not have enough finished bicycles ready for delivery [app] so this might affect customer satisfaction [an]. ■ A fault in a part of the batch will often affect the whole batch [k]; if the quality of local parts or tyres [app] is not up to standard, all the bicycles will be affected [an]. Application marks may be awarded for appropriate use of the following: ■ different sizes ■ children’s bicycles ■ components bought from local suppliers ■ tyres imported ■ located near an airport ■ employs 75 production workers and 10 office workers ■ good working conditions ■ sold to large retail shops around the world.

Cambridge IGCSE Business Studies 27: Exam technique Don’t worry if the points you have mentioned do not feature in the list. A mark scheme does not include every possible answer. If the point made is relevant, it will usually be rewarded. Sample answer (written by the authors): Advantage: It is a more flexible way of working. Explanation: It’s relatively easy to change production from one style of product to another to meet demand. So if there is an increase in the number of orders for a particular size or style of girls’ or boys’ bicycle then Early Riders can quickly meet this demand. This means the large stores have the bikes they want, which can increase its sales. Disadvantage: Part finished goods have to be moved around the factory. Explanation: This will increase transporting and storage costs, and it will take time which reduces workers’ efficiency. Inefficient workers need to be trained. Efficiency is important for any business as this can help it lower costs and increase profits. Comments on part (a): 356 Advantage: This is a valid reason. There is some development linking how flexibility can benefit Early Riders’ business. There is clear application both in terms of understanding that it makes a variety of models, and how the ability to meet demand helps it meet its customers’ demand. Disadvantage: The disadvantage is a valid point, and there is some development of why it is a disadvantage. However this is a general point, which is applied to this business. The focus of the second part is more on efficiency rather than batch production. b The Human Resources Director is worried that a high number of workers leave the company each year because of poor motivation. Consider three different methods that Early Riders could use to increase motivation of the production workers. Recommend which method you think will be the most effective. Justify your answer. [12]

27: Exam technique Extract from sample mark scheme: Relevant ways might include: ■ training ■ increase wages ■ change to piece rate ■ give fringe benefits ■ job rotation ■ job enlargement ■ job enrichment. (Motivation theories can be rewarded if used to explain how the method helps to motivate workers but theories are not essential.) Knowledge/analysis/evaluation – award up to 10 marks using the levels- based mark scheme below. Level Knowledge/analysis/evaluation 357 3 7–10 marks 2 Well-justified recommendation as to the best way to increase 1 motivation. 0 4–6 marks Detailed discussion of ways to increase motivation. 1–3 marks Outline of how to increase motivation. Zero marks. No creditworthy response. Award up to 2 marks for application. Good application [2] well applied to case. At least two examples of reference to, or use of, the case material. Limited application to the case [1]. At least one example of reference to, or use of, case material. Application marks may be awarded for appropriate use of the following: ■ different sizes ■ children’s bicycles ■ components bought from local suppliers ■ tyres imported ■ located near an airport ■ employs 75 production workers and 10 office workers ■ time rate ■ good working conditions ■ sold to large retail shops around the world.

Cambridge IGCSE Business Studies 27: Exam technique Sample answer (written by the authors): Method 1: Add some variety to workers’ jobs, which can help make the work more interesting for workers. Because they are making exactly the same thing in each batch, it can be boring. Job rotation could be used to give them more jobs or they could swap from putting wheels on to adding brakes. Motivation is a problem for Early Riders, so giving some variety to what they do is likely to make workers less bored so this can help reduce the number of workers leaving each year. However, they will have to train workers, which could further increase their costs, which could lower their profit margin. But if they end up spending less money having to keep recruiting new employees, it might be cost-effective. Method 2: Give them higher wages. As they are unskilled, the only way to motivate them is to give them more money. Taylor’s theory said that everyone wants more money, so will work harder if they are paid more. The only problem is that not everyone is motivated by money. Maslow said that people have other needs such as social, and esteem, so just paying them more might not satisfy them. Easy Riders might end up with higher costs for wages but people still leave. Method 3: Give them fringe benefits. Many workers might have children, so getting discounts on bicycles might interest them. The business also benefits with extra sales. With birthdays and festivals every year, buying bikes as children grow is expensive. If they could have access to cheap, quality bikes that might motivate them and make up for the low wages paid. However, this will only work for people who have, or know, children so it might not work for everyone. 358 Recommendation: I think the best option is to give them more variety. They do the same job every day so change can be good. Conditions are good, so it’s either boredom or money that seems to be the problem. Giving higher wages might work for a short while, but then they might just want more. Money only motivates so much. People have other needs to meet. Discounts will only work if you want to buy a bicycle, so it can’t work all the time. If they offer rotation, workers can be interested, and if they learn new skills, they could get promoted as well. Even if it costs money to train them, it has to be worth it, if they keep the workers from leaving and have to spend less money on hiring and training up new people. There are many possible methods that you could include for this question. Keep your discussion to only three methods as this is all that is required. Similar methods such as job enlargement and job enrichment can usually be rewarded separately, if explained. Comments on part (b): There are three relevant methods identified. There are plenty of references throughout the answer that link this to Easy Riders. Examples such as wheels, brakes, good working conditions not being a problem and children are sufficient for the application marks. There is clear development showing how each method could help increase motivation, as well as problems with each method. In terms of evaluation, a choice has been made which is supported by the points made. As part of this, the answer has tried to explain why adding some variety is better than the other two methods.

27: Exam technique Revision tips There is no best way to revise. Everyone is different, and methods of revision that work for one person might not suit someone else. You need to find out which approach is likely to work for you. Here are some simple points to bear in mind: ■ Check what you need to learn – you only need to learn about concepts that are included in the syllabus. Business Studies is a vast topic that covers many more concepts than the ones you will need to understand for the business studies examination you are entering. Your teacher will tell you what you need to revise. ■ Make a revision timetable – plan your time. Set aside a time every week for study. You will be sitting exams in more than one subject so allow yourself plenty of time to revise for everything. Remember to give yourself time to relax as well. ■ Revise effectively – do not spend hours just looking at your textbooks or workbook. Split up your time into smaller revision periods, such as 30–40 minutes. This can help you focus on what you have to do. Give yourself a break. Rest is important and it gives you time to reflect on what you have learnt. ■ Active revision – don’t just read your book. Think about different ways to remember ideas. For example make notes, construct summary charts, create your own mnemonics or mind maps. delay C reditors (trade payables) 359 sell old A ssets S peed up trade receivables H elp F actoring short term L oan O verdraft manage W orking Capital Figure 27.1 Mnemonics Production methods + – when use Job Batch Flow Figure 27.2 Summary chart

Cambridge IGCSE Business Studies 27: Exam technique Up-to-date Benefits Collected for the specific needs of the business Primary Not available to competitors Time-consuming to collect Limitations Expensive to collect Market research Risk of inaccurate data or bias Cheap to collect Benefits Easier and quicker to obtain than primary data 360 Secondary May be out-of-date Limitations Not collected for the specific needs of the business Available to other businesses Figure 27.3 Mind map ■ Test yourself regularly – checking what you have learnt is important. There are revision questions in the textbook. There are also revision guides that you can use to help work out what you need to know. ■ Ask for help – if you have not understood or cannot remember something you need to know. If there are topics or concepts you do not understand, reread your notes or ask your teacher for help. ■ Practise past or sample questions – this will help you get to know the style of questions that you will come across. By practising questions in exam conditions, it can help you to time your answers accordingly.

27: Exam technique As the exam approaches, use the following checklist to help make sure you are 361 ready to do your best. ❑ Good night’s sleep – it sounds obvious but sleep is important especially the night before an exam. You need to be alert in your exam. Otherwise you might misread a question, or turn over too many pages and miss a question or be too tired to remember everything you have learnt. ❑ Keep calm – if you have done your revision, you have nothing to worry about. Being nervous is not likely to help your performance. ❑ Read and follow the instructions on the front of the paper so you know what you have to do. ❑ Attempt every question (remember there are no optional ones) – you cannot achieve any marks if you have written nothing down. ❑ Manage your time – don’t spend too long on the questions with only two or four marks. Allow yourself enough time to answer the longer ones. If you don’t know the answer to a question, move quickly on to the next if you can’t think of anything to write. You can always go back later to answer it. ❑ Read each question carefully – make sure you have the right focus to a question. For example, if the question asks about advantages for shareholders, don’t discuss issues which affect the employees. If the question asks for three methods, include three methods in your answer. ❑ Look for the command word in each question, so you can answer the question correctly. For example, evaluation is not necessary if the command word says ‘identify’. ❑ Write all answers in the answer booklet – use the space provided, don’t write on the insert of Paper 2, as this isn’t marked. If you need more space, ask the invigilator for additional paper. ❑ Show all calculations (and formulae) – it’s easy to make a mistake copying out the answer. If you show your method, your answer may be given some credit. Remember as well if data is provided, there is usually a question that will require you to use it. ❑ Write in sentences – a list of bullet points usually shows knowledge, which isn’t enough to achieve top-level marks. You have to explain each point. ❑ Apply – base your answers on the scenario. Remember don’t just quote the business name. Think about what it makes or sells, or the issues that this business is facing. Use the information provided in the question and/or case study to guide you. ❑ Aim for a balanced answer – try to include both advantages and disadvantages if the question requires evaluation. ❑ Make a decision or recommendations if asked for one – it doesn’t usually matter what you decide, as long as you can support your choice. ❑ Check – leave time at the end of the exam to check what you have written. Have you attempted every question?

Cambridge IGCSE Business Studies Glossary Glossary Absenteeism worker’s non-attendance at work without good Business plan a detailed written document outlining the reason. purpose and aims of a business which is often used to Acid test ratio ratio between liquid assets and current liabilities. persuade lenders or investors to finance a business proposal. Adding value selling a product for more than it cost to Business start-up a newly formed business. They usually start produce it. small, but some might grow to become much bigger. Advertising paid-for communication with consumers which Capital expenditure spending by a business on non-current uses printed and visual media. The aim is to inform and assets such as machinery or buildings. persuade consumers to buy a product. Capital goods physical goods used by other businesses to help Annual General Meeting (AGM) a meeting for shareholders produce other goods and services such as machinery and that limited companies must hold once every year. delivery vehicles. Appreciation a currency is said to appreciate if the value of the Capital intensive production process using a high quantity of currency increases with respect to another currency. capital equipment compared with labour input. Appropriation account records the distribution of profit after Capital productivity a measure of the efficiency of capital by tax; usually dividends and retained profit. calculating the output per capital employed. Assets resources that are owned by a business. Cash-flow forecast an estimate of the future cash inflows and Autocratic leadership a leadership style where the leader makes outflows of a business. all the decisions. Centralised organisation one where all the important decision- Average costs the cost of producing a single unit of output. making power is held at Head Office, or the centre. Balance of payments the difference between the value of Chain of command the route through which authority is 362 export and import of goods and services of a country passed down through an organisation. over a year. Chain of production the production and supply of goods to the Balance sheet an accounting statement that records the final consumer involves activities from primary, secondary assets, liabilities and owner’s equity of a business at a and tertiary sector businesses. particular date. Channels of distribution how a product gets from the producer Bank loan provision of finance by a bank which the business to the final consumer. will repay with interest over an agreed period of time. Chief Executive Officer (CEO) the most senior manager responsible Barriers to trade usually taxes, quotas or bans that one country for the overall performance and success of a company. places on the goods of other countries to prevent or increase Collateral non-current assets offered as security against the cost of them entering that country. borrowing. Batch production the production of goods in batches. Each Commission payment to sales staff based on the value of the batch passes through one stage of production before moving items they sell. on to the next stage. Communication media the methods used to communicate a Below-the-line promotion promotion that is not message. paid-for communication but uses incentives to encourage Competitive pricing setting a price similar to that of competitors’ consumers to buy. products which are already established in the market. Bonus an additional reward paid to workers for achieving Consumer the final user of a product. targets set by managers. Consumer goods products which are sold to the final consumer. Brand a name, image or symbol that distinguishes a product They can be seen and touched, for example computers and food. from competitors’ products. Consumer markets markets for goods and services bought by Brand image the general impression of a product held by the final consumer. consumers. Consumer services non-tangible products such as insurance Break-even the level of output where revenue equals total costs; services, transport. the business is making neither profit nor loss. Corporate social responsibility (CSR) businesses taking Business activity the process of producing goods and services responsibility for the impact their activities might have on to satisfy consumer demand. society and the environment. Business environment the combination of internal and Cost-benefit analysis analysis of the costs and benefits of a external factors that influence the operations of a business. project, the focus being on the social costs and benefits.

Glossary Cost of sales the cost of purchasing the goods used to make the Diseconomies of scale factors that cause average costs to rise as 363 products sold. the scale of operations increases. Cost-plus pricing setting price by adding a fixed amount to the Dismissal termination by the employer because the worker cost of making or buying the product. has broken company rules or is not performing work to the required standard. Credit sales goods sold to customers who will pay for these at an agreed date in the future. Disposable income the amount of income left for individuals after taxes have been paid. Current assets resources that the business owns and expects to convert into cash before the date of the next Dividend a payment, out of profits, to shareholders as reward balance sheet. for their investment. Current liabilities debts of the business which it expects to pay Division of labour production is divided into separate tasks before the date of the next balance sheet. and each worker does just one of those tasks. Current ratio ratio between current assets and current Domestic market the market for goods and services in the liabilities. business’s own country. Customer an individual or business that buys goods and E-commerce the use of the internet and other technologies services from a business. used by businesses to market and sell goods and services to customers. Customer base the group of customers a business sells its products to. Economic problem unlimited wants cannot be met because there are limited factors of production. This creates scarcity. Customer relationship marketing (CRM) using marketing activities to establish, maintain and improve relationships Economies of scale the reduction in average costs as a result of with customers to build customer loyalty. increasing the scale of operations. Debenture bonds issued by companies to raise long-term Effective communication information passed between two or finance usually at a fixed rate of interest. more people or groups, with feedback to confirm that the message has been received and understood. Debt-factoring selling accounts receivables to improve business liquidity. Entrepreneur an individual who takes the financial risk of starting and managing a new business. Decentralised organisation one where the decision-making powers are passed down the organisation to lower levels. Equity finance permanent finance provided by the owners of a limited company. Delayering reducing the size of the hierarchy by removing one or more levels – most often middle management. Exchange rate the rate at which one country’s currency can be exchanged for that of another. Delegation passing responsibility to perform tasks to workers lower down in the organisation. Expenses day-to-day operating expenses of a business. Demand the quantity of goods and services consumers are Extension strategies marketing activities to extend the willing and able to buy. maturity stage of a product. Democratic leadership a leadership style where workers take External recruitment filling a vacant post with somebody not part in decision-making. already employed in the business. Demographic segmentation dividing consumers in the market Externality the effect of business activities on unrelated by factors such as age, gender, income, ethnic background parties. and social class. Factors of production the resources needed to produce goods Depreciation a currency is said to depreciate if the value of the and services – land, labour, capital and enterprise. currency goes down with respect to another. Feedback the receiver’s response to a message. Direct mail also known as ‘mailshots’, printed materials which are sent directly to the addresses of customers. Financial rewards cash and non-cash rewards paid to workers which are often used to motivate workers to increase their Direct selling the product is sold by the producer directly to the efforts. final consumer without the need for any middlemen. Fixed costs costs that do not change with output. Direct tax the tax charged on personal income or tax on the profit made by a business. Flow production the production of very large quantities of identical goods using a continuously moving process. Directors appointed or elected members of the Board of Directors of a company who have the responsibility for Four Cs marketing decisions that put the customer first and determining and implementing the company’s policy. Some help to build and improve customer relationships. directors might also have a management role, for example a Marketing Director. Four Ps the right product at the right price with the right promotion in the right place.

Cambridge IGCSE Business Studies Glossary Franchise a business system where entrepreneurs buy the right Inflation the price increase of goods and services over time. to use the name, logo and product of an existing business. Infrastructure the basic facilities, services and installations Free trade no barriers exist that might prevent trade between needed for a business to function, for example water, power different countries. and transport links. Fringe benefits non-cash rewards often used to recruit or retain Interest rate the cost to a person or business of borrowing workers and to recognise the status of certain employees. money from a lender such as a bank. Functional departments the main activities of business: Internal recruitment filling a vacant post with someone already finance, marketing, operations, human resources and employed in the business. research and development. Inventories the stock of raw materials, work-in-progress and Geographic segmentation dividing consumers in the market by finished goods held by a business. geographic area. Job description a list of the key points about a job, job title, key Globalisation the process by which countries are connected duties, responsibility and accountability. with each other because of the trade of goods and services. Job dissatisfaction how unhappy and discontent a person is Government incentives usually finance such as interest free with their job. loans, or grants provided to businesses to help when locating Job enlargement increasing or widening tasks to increase in a country or area of a country. variety for workers. Gross domestic product (GDP) the value of all goods and Job enrichment organising work so that workers are services produced by a country in a year. encouraged to use their full abilities. Gross profit the difference between revenue and cost of sales. Job production the production of items one at a time. Gross profit margin % ratio between gross profit and revenue. Hierarchy the number of levels in an organisational structure. Job rotation increasing variety in the workplace by allowing workers to switch from one task to another. Hire purchase the purchase of an asset by paying fixed Job satisfaction how happy and content a person is with repayment amounts per time period over an agreed period their job. 364 of time. The asset is owned by the purchasing company on Joint ventures two or more businesses agree to work together completion of the final repayment. on a project and set up a separate business for this purpose. Home country the domestic country where a multinational Labour productivity a measure of the efficiency of workers by starts/first establishes its operations. calculating the output per worker. Host country the foreign country where a multinational sets up Labour turnover the rate at which workers leave a business. its operations. Hourly wage rate payment to workers based on a fixed amount for Laissez-faire leadership a leadership style where most of the each hour worked. decisions are left to the workers. Hygiene factors the factors that must be present in the Lean production the production of goods and services with the workplace to prevent job dissatisfaction. minimum waste of resources. Income statement financial statement which records the Leasing obtaining the use of a non-current asset by paying a fixed revenue, costs and profits of a business for a given period amount per time period for a fixed period of time. Ownership of time. remains with the leasing company. Indirect tax the tax charged on the price of goods and services, Legal controls laws that control the activity of businesses. which is added to the price of goods and services before they Level of unemployment the proportion/percentage of the are bought. population that are capable of working but are unable to find Induction training a training programme to help new recruits a job. become familiar with their workplace, the people they work Liabilities debts of the business that will have to be paid with and the procedures they need to follow. sometime in the future. Industrial action measures taken by a trade union or a group of Limited liability the shareholders in a limited liability company workers aimed at getting management to settle a dispute in which fails only risk losing the amount they have invested in the employees’ favour. the company and not any of their personal wealth. Industrial markets markets for goods and services bought by Liquidity the ability of a business to pay its short-term debts. other businesses to use in their production process. Long-term finance debt or equity used to finance the purchase Informative advertising information about the product is of non-current assets or finance expansion plans. Long-term communicated to consumers to create product awareness debt is borrowing a business does not expect to repay in less and attract their interest. than five years.

Glossary Loss-leader pricing setting the price of a small number of Niche marketing developing products for a small segment of 365 products at below cost to attract customers into the outlet in the the market. hope that they will buy other products priced to earn profit. Non-current (fixed) assets resources owned by a business Manager an individual who is in charge of a certain group which will be used for a period longer than one year, for of tasks, or a certain area or department of a business, for example buildings and machinery. example Factory Manager. Non-current liabilities debts of the business which will be Market all customers and consumers who are interested in payable after more than one year. buying a product and have the financial resources to do so. Non-financial rewards methods used to motivate workers that Market-orientated products are developed based on consumer do not involve giving any financial reward. demand as identified by market research. Objective a statement of a specific target to be achieved. They Market research the process of collecting, recording and should be SMART. analysing data about the customers, competitors and market for a product. Off-the-job training training that takes place away from the workplace, for example at college, university or specialist Market segment a part of the whole market in which consumers training provider’s premises. have specific characteristics. On-the-job training training at the place of work, watching or Market segmentation dividing the whole market into segments following an experienced worker. by consumer characteristics and then targeting different products to each segment. Opportunity cost the benefit that could have been gained from an alternative use of the same resource. Market share the revenue of a business expressed as a percentage of total market revenue. Ordinary shareholders the owners of a limited company. Market skimming setting a high price for a new product Organisational structure the formal, internal, framework of a that is unique or very different from any other product on business that shows how it is managed and organised. the market. Overdraft an agreement with the bank which allows a business Marketing budget the amount of money made available by to spend more money than it has in its account up to an a business for its marketing activities during a particular agreed limit. The loan has to be repaid within 12 months. period of time. Owner’s equity the amount owed by the business to its owners; Marketing mix four marketing decisions needed for the includes capital and retained profits. effective marketing of a product. Partnership a business formed by two or more people who will Marketing strategy a plan to achieve the marketing objectives usually share responsibility for the day-to-day running of the using a given level of resources. business. Partners usually invest capital in the business and will share profits. Mass marketing selling the same product to the whole market. Penetration pricing setting a low price to attract customers to Micro-finance small amounts of capital loaned to entrepreneurs buy a new product. in countries where business finance is often difficult to obtain. These loans are usually repaid after a relatively short Performance-related pay a bonus scheme used to reward staff period of time where the owners have unlimited liability for for performing above the required standard. any debts of the business. Person specification a list of the qualifications, skills, Middlemen these are the intermediaries in the channels of experience and personal qualities looked for in a successful distribution, for example wholesalers and retailers. applicant. Mixed economy an economy where the resources are owned Personal selling sales staff communicate directly with the and controlled by both the private and public sectors. consumer to achieve a sale and form a long-term relationship between the firm and consumer. Mortgage long-term loans used for the purchase of land or buildings. Persuasive advertising communication with consumers aimed at getting them to buy a firm’s product rather than a Motivation the factors that influence the behaviour of workers competitor’s product. towards achieving set business goals. Piece-rate payment to workers based on the number of Motivators the factors that influence a person to increase units produced. their efforts. Pressure group organisations of like-minded people who put Multinational company an organisation that has operations in pressure on businesses and the government to change their more than one country. policies to reach a predetermined objective. Need a good or service which is essential to living. Price the amount paid by the customer to the supplier when buying a good or service. Net cash flow cash inflow minus cash outflow.

Cambridge IGCSE Business Studies Glossary Price elastic demand the percentage change demand is greater Qualitative research the collection of information about than the percentage change in price. consumer buying behaviour and their opinions about products. Price elasticity of demand measures by how much demand (sales) for a product changes when there is a change in Quality ensuring a good or service that meets the needs and its price. requirements of its consumer. Price inelastic demand the percentage change in demand Quality assurance a system of setting agreed standards for (sales) is less than the percentage change in price. every stage of production. Price leadership smaller firms set their price based on the price Quality circles groups of workers who meet regularly to discuss set by the dominant firm in the industry. work-related problems. Primary research the collection of first-hand data for the Quality control checking the quality of goods through specific needs of the firm. inspection. Primary sector firms whose business activity involves the Quality standards the minimum acceptable standard of extraction of natural resources. production or service acceptable to consumers. Private limited company often a small to medium-sized Quantitative research the collection of numerical data that can company; owned by shareholders who have limited be analysed using statistical techniques. liability. The company cannot sell its shares to the general public. Quota a physical limit on the quantity of goods that can be imported and exported. Private sector the part of the economy that is controlled by Redundancy termination of employment by the employer individuals and companies for profit. because the job is no longer needed. Product the goods and services produced to satisfy a customer Resignation termination of employment by the worker, perhaps need or want. because they have found a job with a different employer. Product life cycle the pattern of sales of a product from Retailer shops and other outlets that sell goods and services to introduction to its withdrawal from the market. the final consumer. 366 Product-orientated the firm decides what to produce and then Retained profit profit remaining after all expenses, tax and tries to find buyers for the product. dividends have been paid, which is then ploughed back into Product quality the product meets the needs and expectations the business. of customers. Retirement termination of employment due to the worker Production the process of converting inputs such as land, reaching an age beyond which they do not need to work. labour and capital into saleable goods, for example shoes and Return on capital employed (ROCE) ratio between profit cell phones. before tax and capital employed. Productivity a measure of the efficiency of inputs used in the Revenue the amount a business earns from the sale of its production process, especially labour and capital. products. Profit the difference between revenue and total costs. Salary fixed annual payment to certain grades and types of staff not based on hours worked or output. Profit and loss section records expenses, interest payments, tax and profit. Sales promotion incentives used to encourage short-term increases in sales or repeat purchases. Profit margin % ratio between profit before tax and revenue. Sample a representative sample of the target market selected to Profit-sharing an additional payment to workers based on the take part in market research. profits of the business. Scarcity there are not enough goods and services to meet the Promotion marketing activities used to communicate with wants of the population. customers and potential customers to inform and persuade them to buy a business’s products. Secondary research the collection of data from second-hand sources. Public corporation a business organisation that is owned and controlled by the state. Secondary sector firms that process and manufacture goods from natural resources. Public limited company often a large company; owned by shareholders who have limited liability. The company can sell Share issue source of permanent capital available to limited its shares to the general public. liability companies. Public sector the part of the economy that is controlled by the Shareholder a person or organisation who owns shares in a state or government. limited company.

Glossary Shareholders’ equity (funds) alternative term for owner’s Team-working organising production so that groups of workers 367 equity, but can only be used by limited liability companies. complete the whole unit of work. Shortlist a list of candidates who are chosen from all of the Tertiary sector firms that supply a service to consumers and applicants to be interviewed for the job. other businesses. Short-term finance loans or debt that a business expects to pay Theory of economic man the view that humans are only back within one year. motivated by money. Social benefit the positive impact of a business decision on society. Total cost all the variable and fixed costs of producing the total output. Social cost the negative impact of a business decision on society. Trade bloc a group of countries that trade with each other and Social enterprise a business with social objectives that reinvests are usually part of a free trade agreement. most of its profits back into the business or into benefiting society at large. Trade payable the amount a business owes to its suppliers for goods bought on credit. Sole trader a business that is owned and controlled by just one person who takes all of the risks and receives all of the profits. Trade receivable amount owed to a business by its customers who bought goods on credit. Span of control the number of subordinates reporting to each supervisor/manager. Trade union an organisation of workers aimed at improving pay and working conditions and providing Specialisation people and businesses concentrate on what they other services, such as legal advice, for members. are best at. Trading account records revenue and costs of sales and is used Sponsorship payment by a business to have its name or to calculate gross profit. products associated with a particular event. Two-way communication the receiver is allowed to respond to Stakeholder an individual or group which has an interest the message and the sender listens to the response. in a business because they are affected by its activities and decisions. Unincorporated business a business that does not have legal identity separate from its owners. The owners have unlimited Start-up capital the finance needed when first setting up liability for business debts. a business. Unique selling point the special feature of a product that sets it Subordinate an employee who is below another employee in the apart from competitors’ products. organisation’s hierarchy. Unlimited liability if an unincorporated business fails, then the Supervisor an individual who checks and controls the work of owners might have to use their personal wealth to finance subordinates. any business debts. Sustainable development a business activity is said to Variable costs costs that change in direct proportion to output. be sustainable if it has a positive overall impact on the environment and its stakeholders, ensuring its survival in Want a good or service which people would like, but is not the future. essential for living. Target market individuals or organisations identified by a business Wholesaler a business that buys products in bulk from as the customers or consumers of their products. producers and then sells them to retailers. Tariff a tax applied to the value of imported and exported goods. Working capital the capital needed to finance the day-to-day running expenses and pay short-term debts of a business. Tax a charge/fee paid to the government on income, goods and services.

Cambridge IGCSE Business Studies Index Index The index covers Sections 1 to 6 as well as entries in the Glossary where these provide additional information. Page numbers in bold refer specifically to tables; those in italic to figures. 3D printers 211 business plans 42, 98 mobile (cell) phone market in Africa 140 contents 29 printer and ink cartridge manufacture 15 absenteeism 73 purpose 29–30 Samsung product development 166 accounting ratios 284–289, 290 Skywards reward scheme 184 accounts payable see trade payable business records 155 Starbucks and globalisation 330 accounts receivable see trade receivable businesses start-up capital 245 acid test ratio 289 Toyota quality 233 added value 16–17, 286 economic influences 43 unemployment rates in Egypt 303 failures 40–43 unfair dismissal 120 see also profit growth see business growth Volkswagen quality 231 advertising 142, 145, 150, 182–183 measuring size 32–34 Weetabix 147 start-ups 30–31, 46, 53–54 cash 249, 278 see also branding types 25, 45–55, 45 financing short-term cash-flow agenda 126 Annual General Meeting (AGM) 96 see also franchises; joint ventures; problem 262 application forms, job 111–112 limited companies; partnerships; importance of 42, 258 appreciation (of currency) 337, 337 sole traders and profit 271 appropriation account 247, 362 cash-flow forecasts 259–261 aptitude tests 112 buy-one-get-one-free pricing 173 centralised organisations 95 Articles of Association 48 chain of command 91–92 Asia-Pacific Economic Cooperation CAD (computer-aided design) 211, 232 chain of production 22 CAM (computer-aided manufacturing) 211 channels of distribution 179–181, 181, 230 (APEC) 328 capital (factor of production) 11 charts and diagrams 127, 129, 160–161 assets 32, 277–278, 279 capital employed 32–33, 287 break-even charts 223–226 autocratic leadership 100, 101 Chief Executive Officer (CEO) 96 Avari Hotels 95 availability of finance 40, 42 CIM (computer-integrated average costs 216 capital expenditure 245 manufacturing) 212 capital goods 15 Coca-Cola 237 368 capital intensive 210 collateral 49 backward vertical integration 37, 38 capital productivity 362 collective bargaining 103 balance of payments 299 case studies commission 81 balance sheet 277, 280 communication banks Agrid South Africa, location decision 240 barriers to effective communication 130–133, loans and overdrafts 63, 251, 252, 292 Air India 37 services 212 avitourism in South Africa 147 131, 238 bar charts 160–161 balance sheets 281 effective 363 barriers to trade 194 budget airlines 41 importance of effective see also free trade Canyou Group social enterprise 61 batch production 208–209, 210 car manufacturing industry 52, 231, communication 122–124 below-the-line promotions 183 internal and external 123 Board of Directors 96 233, 338 in large businesses 221 bonds see debentures car market in India 213 and leadership styles 101 bonus schemes 81 Cemex asset sales 249 methods and media 123, 125–129, 128, 129 boom economy 302 diamonds in South Africa 23 community, local 64, 65 borrowing see finance e-commerce in Brazil 188 company magazines 126 branding 16, 142, 164 economies of scale in East African competition 42, 142, 143–145, 154 brand image 59, 165, 229 causes and effects of 31 break-even analysis 223–226 supermarkets 222 see also globalisation bulk-buying economies 220 entrepreneurs 265, 271 competitive pricing 172, 174 business activity 9, 14 football manufacture and specialisation 13 computer-aided design (CAD) 211, 232 business classification 20–22 football sponsorship 185 computer-aided manufacturing (CAM) 211 changing importance of 23–25 garment industry in Bangladesh 325 computer-integrated manufacturing business cycle 301–303 Google’s internal communication 130 (CIM) 212 business environment 141 importance of profit 274 conglomerate integration 38, 38 business growth 35–37 interest rates in Indonesia 308 consumer goods and services 14–15 factors affecting 38–40, 53 Jaguar Land Rover (JLR) and Chery consumer markets 141 business objectives 42 consumers 141 public sector organisations 66 Automobile joint venture 52 changes in behaviour 24 purpose 57–58 joint ventures 52, 198 surveys 157–158 setting 101 Kellogg’s market research 158 see also customers SMART 57–58 KFC and market segmentation 149 contract of employment 119 social enterprises 60–61 leadership styles in the oil and gas convenience 17 types and examples 58–60 industry 102 leather bags and belts in Ethiopia 18 Mama Meals on Wheels 30 manufacturing in Mexico 335 Metrorail cash flow 263 micro-finance 255

Index cooperatives see social enterprises e-commerce 144, 186, 187, 187 short-term or long-term 246, 252 369 corporate plans 30 economic growth 300 see also capital employed corporate social responsibility (CSR) economic influences on business success and financial rewards 79–82 financial statements 280 59–60, 318 failure 43 balance sheet 277 corporation tax 305–306 economic man, theory of 76 cash-flow forecasts 259–261 cost-benefit analysis 318 economic problem 11 income statements 272 cost of sales 269 economies, developing and developed interpretation 283–291, 290 cost-plus pricing 173, 174 stakeholder interest 284, 291–292 costs 13, 205, 215–218 23–24 fiscal policies 303–304 credit sales 250, 264 economies of scale 36, 219–222 fixed assets see non-current (fixed) assets creditors see trade payable education 24 fixed costs 215 CSR (corporate social responsibility) efficiency, improving 144–145 flat organisational structures 93–94 electronic communication 126, 128 flow production 76–77, 209–210, 210 59–60, 318 electronic funds transfer at the point of sale focus groups 156 cultural differences 238 foreign markets 193–196 current assets 278 (EFTPOS) 212 forward vertical integration 37, 38 current liabilities 278 electronic point of sale (EPOS) 212 four Cs 363 current ratio 288–289 emails 129 four Ps 164 curriculum vitae (CV) 111, 112 employees franchises 50–51, 197 customer base 140 free trade 144, 238 customer relationship marketing (CRM) 363 communication about growth plans 39 see also barriers to trade customers 141 company policies and administration 78 free trade agreements 328 departure 116–118 fringe benefits 72, 81–82 complaints 230 financial rewards 79–82 functional departments 89 identifying and satisfying needs 139–140, interest in financial statements 291 motivation 71–73, 72, 78, 84–85, 221 geographic segmentation 148 143, 154 non-financial rewards 83–84 globalisation 327–329 loyalty 140, 164, 230 number of 34 spending decisions 141–142 part-time 113–114 see also competition as stakeholders 64, 65, 292 as stakeholders 63, 65 goods and services see also consumers trade unions 103, 119 customs duty see import tariffs employment 300 factors of production 11 energy sources 316 specialist 31 de-industrialisation 24 enterprise 11, 28 types of 14–15 debentures 253 entrepreneurs 11, 28–29 see also product debt-factoring 252, 363 environmental concerns 313–322 government(s) debt finance 254 see also corporate social responsibility borrowing 307 economic objectives 299–300 see also finance (CSR) fiscal policies 303–304 debtors see trade receivable equity finance 254, 254, 278 grants and incentives 236, 238, 254, 322, 327 decentralised organisations 95 Ericsson 52 influence of large businesses 36, 334 decision-making 95 ethical issues 322–325 as information source 155 interest in financial statements 292 and leadership styles 101, 102 location decisions 236, 238 market intervention 144 delayering 94–95 see also corporate social responsibility spending 307 delegation 84, 92, 99 as stakeholders 64, 65 (CSR); globalisation support for business start-ups 30–31, 144 see also decentralised organisations exchange rates 335–337 tariffs and quotas 330 demand 175–176 excise duty 307 see also public sector demand curve 141, 175–176 expenses, business 269 graphs see charts and diagrams democratic leadership 100, 101 export tariffs 330 greenhouse gases 316 demographic segmentation 149–150 exports 299 gross domestic profit (GDP) 300 departmental managers 96 extension strategies, product 169 gross profit 268 depreciation (of currency) 336, 336 external growth (integration) 37–39, 38 gross profit margin 285–286 deregulation 144 external recruitment 107 growth economy 302 desk research see secondary research externalities 317–318 growth objectives 59 developing economies 23–24, 254 direct mail 185 Facebook see social networks handling costs 205 direct selling 180, 181 factors of production 11 health and safety 119–120, 131 direct taxes 304–306 failure, business Herzberg, Fredrick 77 directors 96 hierarchy 90, 93–94 discounted pricing 173 liability for debts 53 hire purchase 253 discrimination 119 reasons for 40–43 home country 329 diseconomies of scale 220–222 survival objective 59 horizontal integration 37, 38 dismissal, employee 117, 119 Fair Trade 323 host country 329 disposable income 304 feedback, communication 123, 125, 132 hourly wage rate 80, 120 distribution channels 179–181, 181, 230 field research see primary research hygiene factors 77–78 dividends 48 finance division of labour 14 choosing most suitable source 255–256 domestic markets 195 debt or equity 254 dominance, market 36, 40 external sources 251–254 durable consumer goods 14 internal sources 247–250 purposes 245

Cambridge IGCSE Business Studies Index import tariffs 238, 307, 330 location decisions 236, 239 memorandum 126, 129 imports 299 marketing 192–193 Memorandum of Association 48 income, consumer 24, 142, 195 legal identity 52–53 micro-finance 254 income statements 272 leisure time 24 Microsoft 13 income tax 304–305 lenders middle management 94 incorporated businesses 52–54 business size preferences 220 middlemen 180 indirect taxes 304, 306–307 as stakeholders 63, 65, 292 induction training 115 see also banks see also distribution channels industrial action 364 less developed countries (LDC) 23 minimum wage, legal 120 industrial markets 141 letters 125, 129 minutes of meeting 126 industrialisation 24 liabilities 277, 278, 279 mixed economies 25 industry variations 32–33 liability, owner 48, 52–53 mobile phone market 17 inflation 300 licensing 197 monetary policy see interest rates informative advertising 183 limited companies 48–49, 96, 254, 277 more developed countries (MDC) 23 infrastructure 235 limited liability 48, 52–53 mortgages 253 insurance costs 205 line graphs 161–162 motivation intangible products 15 liquidity 250, 263, 288–290 integration 37–39, 38 loans, bank 252 benefits 73, 221 interest rates 303, 308–309 local community 64, 65 financial rewards 79–82 internal growth 37, 38 location 42 influences 71–72, 84–85 internal recruitment 107 choosing 235–239, 236 and leadership styles 101 internet multinational companies (MNC) 327, theory 74–78 motivators 77–78 for customer surveys 158 331–334 multinational companies (MNC) 327, as information source 155 long-term finance 246, 278 331–334 for promotion 188 long-term (non-current) liabilities 278 see also e-commerce loss-leader pricing 173 needs 9–10, 139, 143 interviews 129 loyalty reward schemes 183 Maslow’s Hierarchy 74–75 job 112 market research 157, 160 mailshots see direct mail net cash flow 259 inventories 205–206, 249 managers 96 newspapers and magazines 155 investors 291 niche marketing 145, 146 invoices 126 control in large businesses 221 non-current (fixed) assets 245, 248, 278 370 functions 98, 220 non-current liabilities 278 interest in financial statements 291 non-durable consumer goods 14 job advertisements 110–111 skills and expertise 42 non-financial rewards 79, 83–84 job analysis 108 as stakeholders 63, 65 job creation 30 see also hierarchy objectives 42 job description 109, 109 market domination 36, 40 public sector organisations 66 job dissatisfaction 78 market-orientation 153 purpose 57–58 job enlargement 83 market research 42 setting 101 job enrichment 83 collecting information 153–160 SMART 57–58 job production 208, 210 presentation of results 160–162 social enterprises 60–61 job redesign 83 market research agencies 155 types and examples 58–60 job rotation 83 market segmentation 148–150 job satisfaction 83 market share 34, 36, 59 observational research 156–157 joint ventures 51–52, 197, 333 market size 40, 154 obsolescence 205 just-in-time (JIT) inventory market skimming 172, 174 off-the-job training 116 marketing oil, chain of production 22 control 207 budgets 185 on-the-job training 115–116 costs 220 online surveys 158 Kaizen 207 legal controls 192–193 operations management 203–204 mass 146, 147 opportunity cost 12, 205 labour 11 niche 145, 146 oral communication 125, 128 labour costs 236, 237 role of 139–140 ordinary shareholders 48 labour productivity 73 strategies 190–192 organic growth see internal growth labour turnover 73 see also market research organisation charts 89–91, 90, 91 laissez-faire leadership 100, 101 marketing mix 164, 169–170, 190 organisational structure 89–97 land 11 markets organisations, business 25, 45–55, 45 language for communications 132 competition 143–145 leadership styles 99–102 customer spending patterns 141–143 see also franchises; joint ventures; lean production 206–207 definitions 141 limited companies; partnerships; leasing 252–253 foreign 193–196 sole traders legal controls 53 Maslow’s Hierarchy of Needs 74–75 mass marketing 146, 147 outsourcing 324 balance sheet 277 mass production see flow production overdrafts 251 competition 144, 193 McDonald’s 50–51 owners, business 53–54, 62–63, 278 employment issues 118–120 meetings 126, 129 environmental issues 321–322 as stakeholders 65, 291 foreign markets 196 packaging 166, 316 part-time workers 113–114 partnerships 47, 246

Index penetration pricing 172, 174 qualitative research 156, 160 specialisation 12–14 371 performance, measurement of quality specialist goods and services 31, 150 business 284–287 importance of 229–230 see also niche marketing performance-related pay 81 issues arising from international spending patterns, consumer 141–142 person specification 109, 110 sponsorship 185 personal selling 184 locations 238 stakeholders personalised service 17 quality assurance 232–233 persuasive advertising 183 quality control 231–232 financial statements 284, 291–292 physical goods 14, 15 quality standards 229 groups 62–64, 317 pictograms 161 quality circles 84 objectives 65, 65 pie charts 161 quantitative research 156, 160 profit and income statements 272 piece-rate 76, 80 quotas 330–331 start-ups 30–31, 46, 53–54 Pizza Hut 95 status 75, 81–82, 90 place see distribution channels ratio analysis see accounting ratios stock see inventories pollution 314, 315 recession 302 subordinates 92 postal surveys 157–158 recruitment and selection 106–113, Subway 197 pressure groups 60, 320–321 supervision 78 price 108, 131 and leadership styles 101 redundancy 117–118 supervisors 97 and demand 141, 144–145, 170–171, relationships 77 suppliers 63, 65 175–177 relocation of operations 237–238 sustainable development 319 repeat purchases 230 effect of competition 31 resignation, employee 117 tables (data presentation) 160 premium 17, 230 resources takeovers 36, 49 price discrimination 150 price elasticity of demand 175–177 for business growth 39 see also integration price leadership 172 decisions on use of 12 tall organisational structures 93 pricing methods 171–173, 174, 175 natural 316 tangible goods 14 primary research 154–160, 155 retailers 180 target market 141 primary sector activity 20 see also distribution channels tariffs 238, 307, 330 private limited companies 48–49 retained profits 247–248, 268 Tata Group 52 see also limited companies retirement 117 tax 64, 292, 303–304, 309 private sector 25–26, 49, 270 return on capital employed (ROCE) 287 Taylor, F. W., scientific management privatisation 144 revenue 29, 33, 177, 268 product 164 risk theory 76 features and functions 17 banks’ views when lending 252 team-working 84 marketing decisions 170 for business owners 29, 53–54 technology see also goods and services product development 144, 165, 165 salary 80 advantages and disadvantages for product life cycle 166–170, 168, 170, sale and leaseback 248 stakeholders 212–213, 212 230, 302 sales commission 81 product-orientation 153 sales promotions 183 failure to invest in 42 production 203–207 sales tax 307 impact on production 211–213, 220 impact of technology 211–213 sampling 159 and the marketing mix 186–187 importance of specialisation 12–14 scarcity 12 telephone calls 129 methods 208–211 scientific management theory 76 tertiary sector activity 21 quality control and assurance secondary research 154–155, 155 Tesco 196 secondary sector activity 21 test marketing 157 231–233 selection see recruitment and selection text messaging 129 productivity 366 services 15 total cost 215, 216, 268 productivity, labour 73, 204–205 tourism 313 profit 223, 268–271, 366 personalised 17 trade bloc 328 specialist 31 trade credit 251 from adding value 16 share issues 254 trade payable 278 business objective 36, 59 shareholders 48, 278 interest in financial statements 292 and ethical behaviour 324 as stakeholders 62–63, 291 trade receivable 250, 252, 278 social enterprises 60 Sharia law 308 trade unions 103, 119 see also dividends; income statements short-term finance 246 trading account 367 profit and loss 366 shortlist of job applicants 112 training 72 profit margin 285–286 shrinkage costs 205 benefits 114 profit-sharing 82 slump 303 types 115–116 promotions, product 145, 170, 172–173, 174, small businesses 40, 92 transportation, product 180, 195, 236, 327 182–184 SMART objectives 57–58 turnover, labour 73 public corporations 54–55 social benefit 317 Twitter see social networks public limited companies 48–49 social cost 317 two-factor motivation theory 77 see also limited companies social enterprises 60–61 two-way communication 125 public sector 25–26, 66 social networks 144, 188 see also feedback, communication see also public corporations sole traders 45–46, 246 purchase orders 126 Sony Corporation 52 unemployment, level of 300 purchasing economies 220 span of control 90, 92–93 unethical business practices 323 unfair dismissal 119

Cambridge IGCSE Business Studies Index unincorporated businesses 48, 52–53 Virgin Group 52 work-in-progress 205 see also partnerships; sole traders visual communication 127, 128 workforce 34, 116–118 unique selling point 153 see also charts and diagrams see also employees unlimited liability 48, 52–53 working capital 245, 249–250, 263–264 wants 9–10, 139 working capital cycle 264 vacancy advertisements 110–111 warehousing costs 205 working conditions 77, 103 value added tax (VAT) 306 waste 206–207, 315–316 written communication 125–126, 128 variable costs 215 wholesalers 180 video-conferencing 126, 129 YouTube see social networks see also distribution channels 372

Acknowledgements Acknowledgements The author[s] and publishers acknowledge the following sources of copyright material 373 and are grateful for the permissions granted. While every effort has been made, it has not always been possible to identify the sources of all the material used, or to trace all copyright holders. If any omissions are brought to our notice, we will be happy to include the appropriate acknowledgements on reprinting. [The publisher has used its best endeavours to ensure that the URLs for external websites referred to in this book are correct and active at the time of going to press. However, the publisher has no responsibility for the websites and can make no guarantee that a site will remain live or that the content is or will remain appropriate.] cover: Binkski / Shutterstock; p8 eyetwist / kevin balluff / Getty; p9 Bloomberg via Getty Images; p13 Alive and Kicking; p16 TonyV3112 / Shutterstock; p17 XIANGYANG ZHANG / Thinkstock; p17 Jupiterimages / Thinkstock; p18 © Nikreates / Alamy; p20 © Kris Vandereycken / Thinkstock; p21 Rainer Plendl / Thinkstock; p22 Fuse / Thinkstock; p26 © Robert Harding World Imagery / Alamy; p28 © Mark Chivers / Alamy; p31 Andersen Ross / Thinkstock; p37 © Antony Nettle / Alamy; p46 gpointstudio / Thinkstock; p50 © Ian Canham / Alamy; p54 © Alvey & Towers Picture Library / Alamy; p70 Digital Vision / Thinkstock; p71 Jack Hollingsworth / Thinkstock; p90 kalawin jongpo / Thinkstock; p96 Digital Vision / Thinkstock; p102 © Getty Images / Thinkstock; p113 Wavebreakmedia Ltd / Thinkstock; p115 Catherine Yeulet / Thinkstock; p116 Helder Almeida / Thinkstock; p122 StockRocket / Thinkstock; p125 Helder Almeida / Thinkstock; p126 Jon Feingersh / Thinkstock; p138 Gajus / Thinkstock; p139 © Alistair Laming / Alamy; p141 © Tara Flake / Thinkstock; p146 © Edward Moss / Alamy; p147 © Eric Nathan / Alamy; p150 © Greg Balfour Evans / Alamy; p153 © PhotosIndia.com LLC / Alamy; p157 XiXinXing / Thinkstock; p158 © whiteboxmedia limited / Alamy; p166 © Iain Masterton / Alamy; p171 adisa / Thinkstock; p172 © Pawan Kumar / Alamy; p183 stockshoppe / Shutterstock; p184 © Lou-Foto / Alamy; p202 Pawel Worytko / Thinkstock; p205 endopack / Thinkstock; p208 Jupiterimages / Thinkstock; p209 gerenme / Thinkstock; p212 © Rainer Plendl / Thinkstock; p220 tcly / Thinkstock; p229 Levent Konuk / Thinkstock; p233 © Michael S. Yamashita / Corbis; p238 Majority World / Getty; p244 Sebastian Duda / Thinkstock; p245 Juergen Ritterbach / Getty; p253 © Mark Richardson / Alamy; p265 [email protected]; p271 LifeChoices / Shutterstock; p274 © Sue O’Connor / Alamy; p278 Tetra images / Thinkstock; p298 vasaleks / Thinkstock; p300 travellinglight / Thinkstock; p309 © ColsTravel / Alamy; p314 Radu Razvan / Thinkstock; p315 Fuse / Thinkstock; p316 michal kodym / Thinkstock; p320 © David Grossman / Alamy; p327 Milos Peric / Thinkstock; p335 © Danita Delimont / Alamy; p338 © dpa picture alliance / Alamy; p350 [email protected] The publishers would like to thank the following people who assisted in reviewing this book: Alistair Castle and Gary Phillpott.



IGCSE Business Studies Student CD-ROM Section 1 – Word search quiz How well do you know key terms? Match the definitions in the left hand column with the correct term in the right hand column and then find the term in the word search on the following page.  1 A good or service which is essential for living. a mixed b innovative  2 Machinery is an example of this factor of production. c social d fail  3 This is an example of a natural resource. e SMART  4 Entrepreneurs have these. f market share g growth  5 This term is used to describe when there are not enough goods and services to meet consumer wants. h owner  6 This type of consumer good can be used over and over again. i scarcity j capital  7 Business activity in this sector takes natural resources and k employees converts them into finished goods. l ideas m joint  8 This describes economies which have both a private and public n secondary sector. o wood p durable  9 A characteristic of successful entrepreneurs. q need 10 Governments might provide these to support business start-ups. r economies of scale 11 One method of measuring the size of a business. s grants t plan 12 A new business should have one of these. 13 All objectives should be this. 14 This might be a business objective. 15 This might be a benefit of the answer to clue 11. 16 Poor cash-flow management might be a reason why this happens to some businesses. 17 Sole traders have only one of these. 18 Sometimes two or more businesses might work together on this type of venture. 19 This is a group of internal business stakeholders. 20 This type of enterprise reinvests all of its profit or uses it to benefit the local community. © Cambridge University Press 2014  IGCSE Business Studies Section 1 – Word search quiz 1

IGCSE Business Studies Student CD-ROM S E CONDAR YHV E E C ONOM I E S J ME R P AO F DONG P L E A OWN E R T X L B V C HH F A E NDOA I S L S T SK I EYRTCCL TW I OX E UA A E A T EO J I EDVL F TRN K RMS NOE U I ACK RGR ANT S PMR I O AR LNT LA S KOT L MP I S OC I A L S Y E © Cambridge University Press 2014  IGCSE Business Studies Section 1 – Word search quiz 2

IGCSE Business Studies Student CD-ROM Section 2 – Key terms How well do you know key terms? Look at the definitions below of ten key terms. Link the definition on the right with the correct term on the left. a Dismissal  1 The factors that influence the behaviour of workers towards achieving set business goals. b Motivation  2 A bonus scheme used to reward staff for performing above the required standard. c Shortlist  3 Organising work so that workers are encouraged to use their full abilities. d Performance related pay  4 The formal, internal framework of a business that shows how it is managed and organised. e Feedback  5 The route through which authority is passed down through an organisation. f Chain of command  6 A list of candidates who are chosen from all of the applicants to be interviewed for the job. g Job enrichment  7 A list of the key points about a job, job title, key duties, responsibility and accountability. h Resignation  8 Termination of employment by the worker, perhaps because they have found a job with a different employer. i Organisational structure  9 Termination of employment by the employer because the worker has broken company rules or is not performing work to the required standard. j Job description 10 The receiver’s response to a message. © Cambridge University Press 2014  IGCSE Business Studies Section 2 – Key terms 1

IGCSE Business Studies Student CD-ROM Section 2 – Chain link puzzle Solve the clues below and enter your answer in the grid provided. Start with the answer to clue one in the top left of the grid. The last letter of the answer to clue one is the first letter of the answer to clue two and so on. For example, if the answer to a clue is ‘financial’, then the answer to the next clue begins with the letter l, for example ‘legal’. You would write this in the grid as ‘financialegal’ - note the letter ‘l’ is only used once for both words. Write your answers starting at the top left-hand side of the grid. Then go along the top row from left to right and then back along the second row from right to left – think of it as the shape of a snake! You have exactly the right number of squares for all of the answers. The first one has been done for you. NE ED S  1 Maslow’s Hierarchy of . (5)  2 This is the third level of the above in Maslow’s hierarchy. (6)  3 Laissez-faire is one of the styles of . (10)  4 This is a function of management. (8)  5 This type of discrimination is illegal in most countries. (6)  6 A worker is made this when their job is no longer required. (9)  7 This is an organisation that negotiates with employers on behalf of its members. (5, 5)  8 A barrier to effective communication. (5)  9 A method of communication. (10) 10 Quality are an example of non-financial motivation. (7) 11 The number of subordinates who report to a manager or supervisor. (4, 2, 7) 12 There are a number of these in a tall organisational structure. (6) © Cambridge University Press 2014  IGCSE Business Studies Section 2 – Chain link puzzle 2

IGCSE Business Studies Student CD-ROM Section 3 – True or False? True False  1 T he role of marketing is to convert consumers’ wants into a need.  2 Industrial goods are sold to the final consumer.  3 D ecreasing spending on advertisements will increase sales.  4 Deregulation increases competition in a market.  5 T he efficient use of resources will help a firm to become more competitive.  6 S mall firms are able to survive in markets dominated by large firms because of niche markets.  7 G ender is one method of demographic market segmentation.  8 M arket research provides a business with information about its customers, competitors and market.  9 Most businesses are product orientated. 10 Primary research is also known as field research. 11 Secondary research is more accurate than primary research. 12 The internet can be used to collect both primary and secondary research data. 13 Focus panels are mainly used to collect qualitative research data. 14 Pictograms are a visual method of communicating market research data. 15 Price is more important than the other elements of the marketing mix. 16 The maturity stage is the most profitable stage of a product’s life cycle. 17 Redesigning packaging could be used as an extension strategy. 18 Wholesalers are always used in the channel of distribution. 19 Advertising is a form of above-the-line promotion. 20 Joint ventures are one way of overcoming the problems of entering foreign markets. © Cambridge University Press 2014  IGCSE Business Studies Section 3 – True or False? 1

IGCSE Business Studies Student CD-ROM Section 3 – Crossword Solve the clues to complete the crossword puzzle 12 3 4 56 7 89 10 11 12 13 14 Across  2 Postal and online are examples of these. (7)  4 This is a type of demographic market segmentation. (6)  5 A method of presenting market research data. (5)  7 Methods of primary market research which can be face-to-face or over the telephone. (10)  8 This is the amount of money available for marketing activities. (6) 10 Marketing tries to convert consumer wants into these. (5) 12 Demand is said to be this when very responsive to a change in price. (7) 14 A method of pricing which might be used for a unique product. (8) © Cambridge University Press 2014  IGCSE Business Studies Section 3 – Crossword 2

IGCSE Business Studies Student CD-ROM Down  1 Middlemen are found in the channel of . (12)  2 Part of a market. (7)  3 Buy-one-get-one-free is an example of promotion. (5)  6 An element of the marketing mix. (5)  9 sales is when goods are sold by the producer to the consumer without any middlemen. (6) 11 Changing this might be an extension strategy for a product. (6) 13 Attracting more customers is an of promotion. (3) © Cambridge University Press 2014  IGCSE Business Studies Section 3 – Crossword 3

IGCSE Business Studies Student CD-ROM Section 4 – Missing letters The answer to each question has been provided with some of the letters missing. Answer the question and fill in the blanks. Each dash is a missing letter. The number of letters in each answer is also given at the end of the question.  1 The process of converting inputs into outputs. (10) Pu o  2 Raw materials are an example of this type of cost. (8)  3 Locating close to suppliers reduces these costs. (9) ab  4 Abbreviation for computer aided manufacturing. (3)  5 These production methods aim to reduce waste. (4) n ot  6 This is a type of economy of scale which involves the use of machinery. (9)  7 This could be a problem when entering foreign markets. (7) C  8 Abbreviation for a method which might be used to remove the need to hold e inventories. (3)  9 This describes the greater use of machinery in the production process. (10) T na 10 This happens when revenue exactly equals total costs. (5, 4) 11 These controls might influence location decisions. (5) uu 12 The amount earned from the sale of a firm’s products. (7) 13 This might be used to improve labour productivity. (8) T 14 Fixed and average are an example of these. (5) 15 A method of production. (5) tao 16 The difference between revenue and total costs. (6) ekv 17 This production method produces one item at a time. (3) L 18 Abbreviation for the use of computers in the design of products. (3) ee 19 This is producing goods which are free from defects. (7) rg 20 Fixed cost plus variable cost equals this cost. (5) s c rt b A Qy o © Cambridge University Press 2014  IGCSE Business Studies Section 4 – Missing letters 1

IGCSE Business Studies Student CD-ROM Section 5 – Fill in the gaps The answers to questions 1–20 are shown in the box below. Identify the correct answer for each question and fill in the gaps. Timing Survive Leasing Assets Reward Profit Small Appropriation Start-up Acid test Closing Liabilities Legal Discount Owns Gross Current Expenses Revenues Liquidity Retained  1 New businesses need finance for capital. (5-2)  2 profit is an important internal source of finance for most businesses. (8)  3 If a business needs to purchase a new motor vehicle they might use . They will not own the vehicle, but the cost is spread over a number of years. (7)  4 Micro-finance loans are usually for amounts and usually repaid in six months. (5)  5 The structure of a business is one of the main factors considered in making the finance choice. (5)  6 Without cash a business will be unable to . (7)  7 The most important figures on a cash-flow forecast are the balances. (7)  8 A cash-flow forecast shows the of cash inflows and cash outflows. (6)  9 Offering a might encourage trade receivables to pay more quickly. (8) 10 Working capital is important for the of a business. (9) 11 Cash is not the same as . (6) 12 Profit is a for risk taking. (6) 13 An income statement records all of the and costs of a business. (8) © Cambridge University Press 2014  IGCSE Business Studies Section 5 – Fill in the gaps 1

IGCSE Business Studies Student CD-ROM 14 Revenue less costs of sales is known as profit. (5) 15 The account shows how profit is divided between owners and the business. (13) 16 The balance sheet records all of the and of a business. (6, 11) 17 An asset is something which a business . (4) 18 Trade payables is an example of a liability. (7) 19 The ratio ignores inventories. (4, 4) 20 The net profit margin might be used to assess how well a business has been at managing its . (8) © Cambridge University Press 2014  IGCSE Business Studies Section 5 – Fill in the gaps 2

IGCSE Business Studies Student CD-ROM Section 6 – Crossword Using the clues on page 2, complete the crossword on external influences on business activity. 1 2 34 5 6 7 10 8 12 13 9 11 14 15 16 © Cambridge University Press 2014  IGCSE Business Studies Section 6 – Crossword 1

IGCSE Business Studies Student CD-ROM Across Down  3 The value of all goods and services produced by a  1 A decision to not buy a business’s products or service country in a year. and influence customers to do the same.  5 This is the tax paid by businesses on the profits  2 To sell goods and services outside the country they make.  4 The amount of income left for individuals after taxes  7 The process by which countries are connected with have been paid. each other because of the trade of goods and  6 A group of people who join together for a common services. cause aiming to change the way businesses  9 A physical limit on the quantity of goods that can function. be imported and exported  8 A tax applied to the value of imported and exported goods. 10 This stage is the peak of the business cycle. 12 The effect of business activities on unrelated parties 11 An organisation that has operations in more than 1 14 The cost to a person of borrowing money from a country. lender such as a bank. 13 A stage of the business cycle when the economy 15 The value of the negative impact of a business shrinks in size. activity on its external stakeholders 16 To buy goods and services from outside the country © Cambridge University Press 2014  IGCSE Business Studies Section 6 – Crossword 2

IGCSE Business Studies Student CD-ROM Section 6 – Key terms How well do you know key terms? Match the following key words with the correct definition. Write the letter of the correct definition next to each key word. Key word Definition a Host country  1 An organisation that has operations in more than one country. b A multinational company  2 The process by which countries are connected with each other c Quota because of the trade of goods and services.  3 A group of countries that trade with each other and are usually d Exchange rate e Corporation tax part of a free trade agreement. f Tariff  4 The price increase of goods and services over time.  5 The foreign country where a multinational sets up its operations. g Externality  6 The rate at which one country’s currency can be exchanged for h Balance of payments that of another. i Currency depreciation  7 When the value of a currency goes down with respect to another. j Globalisation  8 A physical limit on the quantity of goods that can be imported k Trade bloc and exported. l Inflation  9 The effect of business activities on unrelated parties. 10 A tax applied to the value of imported and exported goods. m Level of unemployment 11 The value of the negative impact of a business activity on its n Social cost external stakeholders. 12 A group of people who join together for a common cause o Boycotting (ethical or environmental). They aim to change the way p Interest rate businesses function. 13 Refusing to buy a business’s products or services and trying to q Pressure group influence other consumers to do the same. r Gross domestic product (GDP) 14 The difference between the value of export and import of goods and services of a country over a year. s Disposable income 15 The proportion/percentage of the population that are capable of working but are unable to find a job. t Tax 16 The value of all goods and services produced by a country in a year. 17 The tax paid by businesses on the profits they make. 18 A charge/fee paid to the government on income, goods and services. 19 The cost to a person or business of borrowing money from a lender such as a bank. 20 The amount of income left for individuals after taxes have been paid. © Cambridge University Press 2014  IGCSE Business Studies Section 6 – Key terms 3

IGCSE Business Studies Student CD-ROM Section 6 – Word search The key terms below are all concerned with external influences on business activity. See if you can find them in the word search. Words go from left to right, across, downwards or diagonally. P S X T I UWT L Y X Y T QWK X Q C T P DQ L AV L L Q ZW J S P P H J Y B F RMDO K X L VU C X OO R B F D C A P O A B OOMR P K A C F Z HO X J UOV X P VDGV P CQ I R Z E J B J NDKD R P CA S CDXA B LMZUGOP E SW Z R G H T Y P L Z Y U I Z DWD O Z U Q P E L S I N C OM EWU Q Y F C Y Z I N O C O PMO F E NV I R ONME N TME L I BMS I NT E R E S T RAT E KXN L A A T G R OWT H K B M J WV I T A S U T L L O I N C OME T A X B S E G F K T I I D Z B B E D A B EMN T R Z T F M I O S GQOT Z KOP I KHNUZ Z A E ONAKDE L F Y J P F GANB THBN NN T N T E B C ND I M L C LWK G V J G A I T K F O E Q S O I TWC VQ K X E Y L O Y C TM L C F TMN C Y N R V X X RHNE T R B A P Y X F G L ZDOVUZ T Y X EWZ L QH E E T H I C S P VWL ETHICS GROWTH BOOM VAT ENVIRONMENT SOCIAL COST MNC FISCAL GLOBALISATION INCOME TAX INTEREST RATE POLLUTION EXTERNALITY BOYCOTT APPRECIATION INCOME © Cambridge University Press 2014  IGCSE Business Studies Section 6 – Word search 4

IGCSE Business Studies Student CD-ROM Section 1 – Key terms answers  1 q  2 j  3 o  4 l  5 i  6 p  7 n  8 a  9 b 10 s 11 f 12 t 13 e 14 g 15 r 16 d 17 h 18 m 19 k 20 c © Cambridge University Press 2014  IGCSE Business Studies Section 1 – Key terms answers 1

IGCSE Business Studies Student CD-ROM Section 1 – Word search quiz answers S E CONDAR YHV E E C ONOM I E S J ME R P AO F DONG P L E A OWN E R T X L B V C HH F A E NDOA I S L S T SK I EYRTCCL TW I OX E UA A E A T EO J I EDVL F TRN K RMS NOE U I ACK RGR ANT S PMR I O AR LNT LA S KOT L MP I S OC I A L S Y E © Cambridge University Press 2014  IGCSE Business Studies Section 1 – Word search quiz answers 2

IGCSE Business Studies Student CD-ROM Section 2 – Key terms answers  a 9  b 1  c 6  d 2  e 10  f 5  g 3  h 8  i 4  j 7 © Cambridge University Press 2014  IGCSE Business Studies Section 2 – Key terms answers 1

IGCSE Business Studies Student CD-ROM Section 2 – Chain link puzzle answers NE ED SOC I AL EA I NNA L P I H S R ED NGENDE R EDUND NO I NUEDAR TNA O I S E L E C T RON I F ONA P S E L C R I C CONT RO L E V E L S © Cambridge University Press 2014  IGCSE Business Studies Section 2 – Chain link puzzle answers 2

IGCSE Business Studies Student CD-ROM Section 3 – True or False? answers  1 True  2 False  3 False  4 True  5 True  6 True  7 True  8 True  9 False 10 True 11 False 12 True 13 True 14 True 15 False 16 True 17 True 18 False 19 True 20 True © Cambridge University Press 2014  IGCSE Business Studies Section 3 – True or False? answers 1

IGCSE Business Studies Student CD-ROM Section 3 – Crossword answers D SURVEY S I N C OME A S GRAPH L T MR E R I NT E R V I EWS I NC BUDGE T NE ED S UI E TR S IE ELAST I C OC IG N T S K I MM I N G © Cambridge University Press 2014  IGCSE Business Studies Section 3 – Crossword answers 2

IGCSE Business Studies Student CD-ROM Section 4 – Missing letters answers  1 Production   2 Variable   3 Transport   4 CAM   5 Lean   6 Technical   7 Culture   8 JIT   9 Automation 10 Break-even 11 Legal 12 Revenue 13 Training 14 Costs 15 Batch 16 Profit 17 Job 18 CAD 19 Quality 20 Total © Cambridge University Press 2014  IGCSE Business Studies Section 4 – Missing letters answers 1

IGCSE Business Studies Student CD-ROM Section 5 – Fill in the gaps answers  1 start-up  2 retained  3 leasing  4 small  5 legal  6 survive  7 closing  8 timing  9 discount 10 liquidity 11 profit 12 reward 13 revenues 14 gross 15 appropriation 16 assets, liabilities 17 owns 18 current 19 acid test 20 expenses © Cambridge University Press 2014  IGCSE Business Studies Section 5 – Fill in the gaps answers 1

IGCSE Business Studies Student CD-ROM Section 6 – Crossword answers 1b o y 2e cx 3g 4d p op i 5c o r 6p o r a t i o n s r tr pe t 7g l o b a l i s a t i o n ss 8t 9q u o t a u a 10 b o o m r r 11 m l 12 e x t e 13 r n a l i t y 14 i n t e r e s t g e f cr c f 15 s o c 16 i a l c o s t e mu s pp s oi ro tn © Cambridge University Press 2014  IGCSE Business Studies Section 6 – Crossword answers 1

IGCSE Business Studies Student CD-ROM Section 6 – Key terms answers  a 5  b 1  c 8  d 6  e 17  f 10  g 9  h 14  i 7  j 2  k 3  l 4  m 15  n 11  o 13  p 19  q 12  r 16  s 20  t 18 © Cambridge University Press 2014  IGCSE Business Studies Section 6 – Key terms answers 2