IGCSE Business Studies 0450 questions and answers
2024\2025 A+ Grade
Need
- correct answer A good or service that is essential for people's living
Want
- correct answer A good or service which people want to have, not essential
Economic problem
- correct answer When wants exceed the resource available to make scarcity
Scarcity
- correct answer when there are unlimited wants but limited resources
Factors of Production (4)
- correct answer Land, labor, capital, enterprise
Opportunity cost
- correct answer The next best alternative choice given up as another was chosen
Specialization
- correct answer When workers specialize in one task which they do, best at
Division of labor
- correct answer When labor force is divided into sections in which people at those sections are
specialized in one particular job
Purpose of business activity
- correct answer Combine 4 factors of production and make products/services
,Added value
- correct answer Selling price - cost of making products
Primary sector
- correct answer Where people extract natural resources from earth and turn them into raw materials
Secondary sector
- correct answer Turn raw materials into products
Tertiary sector
- correct answer Provide services to customers and sell products
De-industrialization
- correct answer Decline of importance for secondary sector
Mixed economy
- correct answer Has private and public sector businesses
Private sector
- correct answer Businesses own by individuals
Public sector
- correct answer Businesses own by the government
Capital
- correct answer Money (invested into a business)
Entrepreneur
- correct answer A person who combines all 4 factors of production together
Qualities of an entrepreneur
- correct answer Risk-taking, confident, patient, optimistic, creative, hard-working
, Business plan
- correct answer A plan which outlines a business' objectives, name of organization, finance and owners
of business
Capital employed
- correct answer Amount of money invested into a business
Comparing the size of businesses (4)
- correct answer Number of employees, output, sales and capital employed
Why owners want business to grow
- correct answer More profit, status, lower average costs, more market share
Expansion problems (4)
- correct answer Bad communication, management, increase expansion costs
Why business want to stay small
- correct answer Nature of product/service, owner wants, market size
Why business fail
- correct answer Poor management (finance), communication, rapid expansion, failure plan to change,
risks when start up
Internal growth
- correct answer Growth within the business (more branches, expansion)
External growth
- correct answer Growth outside of the business (integration, etc.)
Merger
- correct answer When two businesses agree upon joining together into one
2024\2025 A+ Grade
Need
- correct answer A good or service that is essential for people's living
Want
- correct answer A good or service which people want to have, not essential
Economic problem
- correct answer When wants exceed the resource available to make scarcity
Scarcity
- correct answer when there are unlimited wants but limited resources
Factors of Production (4)
- correct answer Land, labor, capital, enterprise
Opportunity cost
- correct answer The next best alternative choice given up as another was chosen
Specialization
- correct answer When workers specialize in one task which they do, best at
Division of labor
- correct answer When labor force is divided into sections in which people at those sections are
specialized in one particular job
Purpose of business activity
- correct answer Combine 4 factors of production and make products/services
,Added value
- correct answer Selling price - cost of making products
Primary sector
- correct answer Where people extract natural resources from earth and turn them into raw materials
Secondary sector
- correct answer Turn raw materials into products
Tertiary sector
- correct answer Provide services to customers and sell products
De-industrialization
- correct answer Decline of importance for secondary sector
Mixed economy
- correct answer Has private and public sector businesses
Private sector
- correct answer Businesses own by individuals
Public sector
- correct answer Businesses own by the government
Capital
- correct answer Money (invested into a business)
Entrepreneur
- correct answer A person who combines all 4 factors of production together
Qualities of an entrepreneur
- correct answer Risk-taking, confident, patient, optimistic, creative, hard-working
, Business plan
- correct answer A plan which outlines a business' objectives, name of organization, finance and owners
of business
Capital employed
- correct answer Amount of money invested into a business
Comparing the size of businesses (4)
- correct answer Number of employees, output, sales and capital employed
Why owners want business to grow
- correct answer More profit, status, lower average costs, more market share
Expansion problems (4)
- correct answer Bad communication, management, increase expansion costs
Why business want to stay small
- correct answer Nature of product/service, owner wants, market size
Why business fail
- correct answer Poor management (finance), communication, rapid expansion, failure plan to change,
risks when start up
Internal growth
- correct answer Growth within the business (more branches, expansion)
External growth
- correct answer Growth outside of the business (integration, etc.)
Merger
- correct answer When two businesses agree upon joining together into one
