CIE IGCSE Topical Past Paper 1
1.2 Classification of businesses
0450/13/O/N/2024
Ramon is an entrepreneur. He plans to start up a home tutoring service to provide students with extra help to learn maths. Ramon is considering buying a franchise. He has prepared a business plan but is concerned about how an increase in the rate of inflation might affect his business. Ramon wants to know whether crowdfunding is the best source of finance for a start-up business to use.
(d) Explain one advantage and one disadvantage to Ramon of buying a franchise.
Advantage:
Explanation:
Disadvantage:
Explanation:
0450/12/O/N/2024
Avtar owns a car repair business which operates in the private sector. It is a small business with 2 full-time employees. Avtar wants to find out the best way for a business to increase added value. Avtar’s business needs finance for many reasons. Avtar wants to know how an economic recession might affect his business.
(a) Identify two features of a private sector business. [2]
Feature 1:
Feature 2:
0450/12/M/J/2024
GTB is a business which operates in the tertiary sector. It owns 5 cafés selling food and drinks. The business uses social media as its method of promotion. The Finance Manager, Moeen, is analysing GTB’s financial statements. An extract is shown in Table 2.1. He is considering ways to improve GTB’s profit margin. Moeen knows there are other users that are interested in the accounts of a business.
Extract from GTB’s financial statements 2023 | |
Revenue | $600 000 |
Profit | $150 000 |
Capital employed | $750 000 |
Profit margin | 25% |
(a) Define ‘tertiary sector’. [2]
045/12/M/J/2024
TCH is a small bakery producing pastries and cakes. It operates in the secondary sector. The added value of TCH’s products has increased since it opened 3 years ago. TCH uses non-financial methods to motivate its 6 employees. TCH’s business objectives have changed since it started up. One of
its new objectives is to expand. Many businesses use external recruitment when they expand.
(b) Define ‘secondary sector’. [2]