Business Studies (0450/0986/OL 7115)
r/IGCSE Resources
Tips by livimoo:
Paper 1:
- 2 mark questions (usually define, identify or calculate) – 2 knowledge marks
- 4 mark questions (identify and explain) – 2 knowledge and 2 application
- 6 mark questions (identify and explain) – 2 knowledge, 2 analysis, 2 application
- 6 mark questions (discussion questions) – 1 knowledge, 1 application, 2 analysis, 2 evaluation
Paper 2:
- 8 mark questions (identify and explain) – 2 knowledge, 2 application, 4 analysis
- 12 mark questions – these marks are not clearly defined, but there are 10 marks available for knowledge, analysis and evaluation and there are 2 marks available for application.
- Knowledge part costs 1 mark.
- Application part costs 1 mark as well.
- Analysis part costs 2 marks.
- Evaluation part costs 2 marks.
In any question, they’d come in this order: Knowledge (this question has one mark), Application (now it has 2 marks), Analysis (now the question has 4 marks (1+1+2)), and finally Evaluation (now the 6 marks which you see as the final question for each case study in a paper 1 exam (1+1+2+2))
*Note that Application requires knowledge to be present in the answer. Analysis requires both Knowledge and Application to be present in the answer. Evaluation requires all the previous parts to be present in the answer.
Studying well and knowing those parts and using them correctly in the exam (or even quiz/mock) will guarantee a high score, if not a full-mark
Tips by Shardz:
Make sure you could apply KAAE correctly
- Knowledge: definitions, and basic terms (those are usually highlighted in books and probably the most things found in notes (ZNotes, for example).
- Application: Apply the knowledge part to the case study or the question. This means you have to take info from the question and apply the knowledge to it
- Analysis: The impact of the case study on the business. Positives and negatives
- Evaluation: Your opinion. Why is this good for the business? Why is it better than the other option?? And why did you make this decision??? (questions requiring evaluation almost always require an answer starting with a yes or no, or either agreeing or disagreeing within the context of your answer. Make it clear to the examiner whether you agree or disagree)
Formulas required for Business Studies (by Atom):
- Gross Profit : Sales – Cost of goods sold
- Net Profit = Cash inflow – Cash outflow
- Capital = Assets – Liabilities
- Net Assets = Capital Employed
- Gross Profit Margin= (Gross Profit /Sales) x 100
- Net Profit Margin = (Net Profit / Sales ) x 100
- Return on Capital employed = (Profit / Capital Employed) x 100
- Current Ratio : Current Assets / Current Liabilities
- Quick Acid Test ratio : (Current Assets – Stock ) / Current Liabilities
- Working capital = Current assets – Current liabilities
- Net assets = Fixed assets + Working capital
- Capital employed = Shareholders’ funds + long-term liabilities
- Break-even point = Total fixed costs/Contribution
- Contribution = Selling Price – Variable Costs
- Total costs = fixed + variable costs
- Shareholders’ wealth = Total assets – total liabilities
- Markup (%) = (Profit per item ÷ Cost per item) × 100
- Return on Capital Employed = (Operating profit ÷ Capital employed) × 100
- Market share = (Total sales of the business ÷ Total shares of the market) x 100
Additional formulas by Snowy:
- Margin of safety = output – break-even point
- Break even = total cost / unit contribution
- Unit contribution = price – variable cost
- Shareholder’s fund = total assets – total liabilities
- Capital employed = shareholder’s funds + long term liabilities
- Net current assets = Current assets – Current liabilities
Tips by Amani
- Understand how the marks are being distributed for each question
- Time yourself when doing past papers – then evaluate why you took long in a certain question if you did. The reason could be that either you did not remember how to structure the answer based on the marks allocated or the type of question asked was difficult for you to answer. Then from there look into what you need to work on and work on it.
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