CAMBRIDGE IGCSE BUSINESS STUDIES FINAL
EXAM SCRIPT 2026 COMPLETE QUESTIONS
AND ANSWERS 100% CORRECT
◉ A want. Answer: A good or service that people would like to have, but
which is not essential for living.
◉ Economic problem. Answer: Infinite wants but finite resources - this
creates scarcity.
◉ Factors of production. Answer: Limited resources needed to produce
goods and services - land, labour, capital and enterprise.
◉ Scarcity. Answer: Lack of sufficient products to satisfy total wants of
population.
◉ Opportunity Costs. Answer: The next best alternative forgone.
◉ Specialisation. Answer: People and business concentrate on what they
are best at.
,◉ Division of labour. Answer: Production is split into separate tasks
each worker specialises in one task.
◉ Business. Answer: An organisation that combines factors of
production to make goods and services to satisfy people's wants and
needs.
◉ Added Value. Answer: The difference between a product's selling
price and the cost of bought in materials.
◉ Primary sector. Answer: Businesses that extract and use natural
resources to produce raw materials.
◉ Secondary sector. Answer: Businesses that manufactures goods using
raw materials provided by primary sector.
◉ Tertiary sector. Answer: Businesses that provide services to
consumers and other firms.
◉ Deindustrialisation. Answer: Decline in the importance of secondary,
manufacturing industry.
◉ Mixed economy. Answer: This has both private sector businesses and
public sector businesses.
,◉ Private sector. Answer: Businesses owned by people, not the
goverment/state.
◉ Public sector. Answer: Businesses owned by goverment/state.
◉ Privatisation. Answer: The sale of public sector business to private
sector.
◉ Capital. Answer: The money invested into a business by the owners.
◉ Entrepreneur. Answer: Someone who organises, operates and takes
the risk for a new business venture.
◉ Business plan. Answer: The document containing the objectives and
details of the operations, finance and owners of a new business.
◉ Capital employed. Answer: The total value of capital used in a
business.
◉ Internal Growth. Answer: The business expands its existing
operations.
, ◉ External Growth. Answer: The business expands by merging with or
taking over another business.
◉ Takeover. Answer: A business buys out the owners of another
business.
◉ Merger. Answer: The owners of businesses agree to join their firms
together to form one business.
◉ Horizontal integration. Answer: The business merges with another or
takes over another one in the same industry at the same stage of
production.
◉ Vertical integration. Answer: The business integrates with another in
the same industry but at a different stage of production. Can be forward
or backwards - towards suppliers is backwards and towards the
market/customer is forward.
◉ Conglomerate integration/diversification. Answer: The business
merges with another or takes another one over but in a different industry.
◉ Sole trader. Answer: The business is owned by one person.
◉ Limited liability. Answer: The liability of owners/shareholders is
limited to the amount invested. Personal possessions are not at risk.
EXAM SCRIPT 2026 COMPLETE QUESTIONS
AND ANSWERS 100% CORRECT
◉ A want. Answer: A good or service that people would like to have, but
which is not essential for living.
◉ Economic problem. Answer: Infinite wants but finite resources - this
creates scarcity.
◉ Factors of production. Answer: Limited resources needed to produce
goods and services - land, labour, capital and enterprise.
◉ Scarcity. Answer: Lack of sufficient products to satisfy total wants of
population.
◉ Opportunity Costs. Answer: The next best alternative forgone.
◉ Specialisation. Answer: People and business concentrate on what they
are best at.
,◉ Division of labour. Answer: Production is split into separate tasks
each worker specialises in one task.
◉ Business. Answer: An organisation that combines factors of
production to make goods and services to satisfy people's wants and
needs.
◉ Added Value. Answer: The difference between a product's selling
price and the cost of bought in materials.
◉ Primary sector. Answer: Businesses that extract and use natural
resources to produce raw materials.
◉ Secondary sector. Answer: Businesses that manufactures goods using
raw materials provided by primary sector.
◉ Tertiary sector. Answer: Businesses that provide services to
consumers and other firms.
◉ Deindustrialisation. Answer: Decline in the importance of secondary,
manufacturing industry.
◉ Mixed economy. Answer: This has both private sector businesses and
public sector businesses.
,◉ Private sector. Answer: Businesses owned by people, not the
goverment/state.
◉ Public sector. Answer: Businesses owned by goverment/state.
◉ Privatisation. Answer: The sale of public sector business to private
sector.
◉ Capital. Answer: The money invested into a business by the owners.
◉ Entrepreneur. Answer: Someone who organises, operates and takes
the risk for a new business venture.
◉ Business plan. Answer: The document containing the objectives and
details of the operations, finance and owners of a new business.
◉ Capital employed. Answer: The total value of capital used in a
business.
◉ Internal Growth. Answer: The business expands its existing
operations.
, ◉ External Growth. Answer: The business expands by merging with or
taking over another business.
◉ Takeover. Answer: A business buys out the owners of another
business.
◉ Merger. Answer: The owners of businesses agree to join their firms
together to form one business.
◉ Horizontal integration. Answer: The business merges with another or
takes over another one in the same industry at the same stage of
production.
◉ Vertical integration. Answer: The business integrates with another in
the same industry but at a different stage of production. Can be forward
or backwards - towards suppliers is backwards and towards the
market/customer is forward.
◉ Conglomerate integration/diversification. Answer: The business
merges with another or takes another one over but in a different industry.
◉ Sole trader. Answer: The business is owned by one person.
◉ Limited liability. Answer: The liability of owners/shareholders is
limited to the amount invested. Personal possessions are not at risk.
