Cambridge IGCSE Business Studies Overview

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Questions and Answers

What is a primary benefit of branding for a company?

Reduces production costs significantly.

Automatically increases customer loyalty.

Allows charging higher prices than competitors. (correct)

Eliminates the need for advertising.

How does excellent service quality impact pricing for a business?

It has no effect on pricing strategies.

It can justify higher prices in some industries. (correct)

It decreases customer satisfaction ratings.

It typically mandates lower prices due to competition.

What is a challenge businesses face when trying to increase added value?

Achieving value increases without raising costs. (correct)

Building a recognizable brand name.

Maintaining current customer relationships.

Reducing overall operational costs.

What role does advertising play in building a brand?

It helps to establish and maintain brand recognition. Signup and view all the answers

What is a key objective of recruitment and training in businesses?

To decrease employee turnover rates. Signup and view all the answers

What aspect of a company's service can create a competitive edge?

Personalized and high-quality service. Signup and view all the answers

Why is it important for businesses to engage with local and national newspapers?

To understand business trends in their area. Signup and view all the answers

What can businesses do to increase their perceived value without altering product quality?

Enhance customer interactions and support. Signup and view all the answers

What is a likely benefit of employing ten workers in Mitike's business?

Increased production capacity Signup and view all the answers

How might Mitike's business impact job competition in their local area?

It creates more job opportunities Signup and view all the answers

Which of the following best represents a marketing strategy for Mitike's business?

Reducing the price of products to attract more customers Signup and view all the answers

What might be a disadvantage of Mitike and her sister hiring more employees?

Higher overall business costs Signup and view all the answers

What factor might influence the recruitment process for Mitike's business?

Qualities and skills required for the job Signup and view all the answers

How does Mitike's business benefit her employees in terms of their needs?

By providing employment and a source of income Signup and view all the answers

What potential challenge might Mitike's business face from competitors?

Increased customer loyalty to competitors Signup and view all the answers

What is one main effect of specialisation on production costs?

Production costs decrease because of increased efficiency. Signup and view all the answers

Which aspect of business activity is exemplified by Mitike and her sister starting their business with a loan?

Resource allocation Signup and view all the answers

What aspect of production does 'division of labour' primarily refer to?

Employees focusing on a specific task in the production process. Signup and view all the answers

Which of the following is an example of 'capital' as a factor of production in making footballs?

The leather sheets used for making the panels. Signup and view all the answers

How does specialisation benefit consumers?

By lowering prices and increasing the quantity of goods produced. Signup and view all the answers

Regarding Global Sports, what is a likely reason they benefit from specialisation?

Specialisation leads to faster production times and less waste. Signup and view all the answers

In the context of employee efficiency, what is one impact of focusing on a single skill?

It enhances the production process by increasing output. Signup and view all the answers

What potential disadvantage could arise from having employees specialized in one task?

Employees may not learn diverse skills over time. Signup and view all the answers

What is the primary goal of specialisation in a business context?

To increase efficiency and productivity in production. Signup and view all the answers

Study Notes

Introduction

This is a Cambridge IGCSE® and O Level Business Studies coursebook, revised third edition
Authors: Mark Fisher, Medi Houghton and Veenu Jain
Book covers syllabus for 2020 examinations.
Designed for students of IGCSE and O Level in Business Studies
Clear and accessible language for successful learning
Includes numerous case studies to provide real-world context.

Section 1: Understanding business activity

Covers the basic building blocks of business studies
Introduces concepts like needs, wants, scarcity, opportunity cost, specialization, and adding value
Explains how businesses classify activities (private vs. public sectors) and how this affects business objectives
Details advantages and disadvantages of different business structures and the role of entrepreneurs
Outlines the roles of stakeholders and how their objectives can influence business activity

Section 2: People in business

Discusses motivating employees
Explores organizational and management approaches
Covers recruitment, selection, and training of employees
Examines internal and external communication methods

Section 3: Marketing

Focuses on market research techniques
Explains marketing strategy
Details competition and the customer
Covers elements of the marketing mix (product, price, place, promotion)

Section 4: Operations management

Covers production of goods and services
Details costs, scale of production and break-even analysis
Explains quality production principles
Explores location decisions

Section 5: Financial information and decisions

Discusses business finance needs and sources
Covers cash flow forecasting and working capital
Explains income statements
Describes balance sheets or statements of financial position
Includes analysis of financial accounts

Section 6: External influences on business activity

Examines economic issues affecting businesses
Addresses environmental and ethical concerns
Explores the role of the international economy on businesses

Additional Resources

Mind maps
Revision questions
Multiple choice questions
Crossword puzzles
Word searches
Cambridge Elevate enhanced edition materials (if applicable)

Case Studies

Real-world examples to illustrate concepts
Found throughout the book
Often feature specific businesses and their operations

Activities

Designed to develop essential business skills: such as application, analysis, and evaluation
Activities may include case studies and questions.

Additional Information

Glossary of key terms at the end of the book.
Exam-style case studies and practice questions are found throughout each section and chapter.
Provides revision techniques and useful tips.

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Description

This quiz covers key concepts from the Cambridge IGCSE and O Level Business Studies coursebook, including basic business activities and the role of people in business. Explore essential topics such as opportunity cost, business structures, and stakeholder influence. Ideal for students preparing for their 2020 examinations.