Cambridge IGCSE®
BUSINESS STUDIES 0450/11
Paper 1 Short Answer and Data Response
1 hour 30 minutes
You must answer on the question paper.
You will need: a calculator
INSTRUCTIONS
● Answer all questions.
● Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs.
● Write your name, centre number and candidate number in the boxes at the top of the
page.
● Write your answer to each question in the space provided.
● Do not use an erasable pen or correction fluid.
● Do not write on any bar codes.
● You may use a calculator.
INFORMATION
● The total mark for this paper is 80.
● The number of marks for each question or part question is shown in brackets [ ].
1 Read the following passage to answer questions (a) to (e).
Petra started her business making handmade soaps after losing her job. She wanted to
work for herself and identified a gap in the local market. Petra produces all the soaps at
home and sells them through social media and at local fairs. She hopes to grow the
business over time and maybe hire an employee.
(a) Define ‘entrepreneur’. [2]
(b) Identify two characteristics of Petra that helped her start the business. [2]
(c) Explain two reasons why Petra’s business is classified as a small business. [4]
(d) Explain two benefits to Petra of being an entrepreneur. [6]
(e) Do you think small businesses are important for the economy? Justify your answer.
[6]
2 Read the following passage to answer questions (a) to (e).
FastMove Ltd is a private limited company that delivers goods for online retailers. It has
grown quickly and now employs 40 staff. The company wants to maximise profit, but the
local community has complained about traffic caused by FastMove’s vans. Shareholders
are also expecting higher dividends this year.
(a) Define ‘stakeholder’. [2]
(b) Identify two internal stakeholders of FastMove Ltd. [2]
(c) Explain two ways FastMove Ltd could reduce stakeholder conflict. [4]
(d) Explain two objectives a business like FastMove Ltd might have. [6]
(e) Do you think businesses should always aim to maximise profit? Justify your answer.
[6]
3 Read the following passage to answer questions (a) to (e).
TechZone is hiring three new employees to work in its IT support department. The HR
manager is responsible for creating job descriptions and person specifications. The
company plans to advertise the roles online. TechZone also provides regular training
and bonus payments to help keep its employees motivated.
(a) Define ‘job description’. [2]
(b) Identify two types of training TechZone might provide. [2]
(c) Explain two methods TechZone could use to attract suitable candidates. [4]
(d) Explain two financial methods of motivation used by TechZone. [6]
(e) Do you think training is the best way to motivate employees? Justify your answer. [6]
4 Read the following passage to answer questions (a) to (e).
HappyTails is a pet grooming business with 12 employees. It has a tall organisational
structure. Each employee has one manager. Recently, communication has become
slower, and employees are unsure who to report to. The business is thinking about
changing its structure to improve efficiency.
(a) Define ‘span of control’. [2]
(b) Identify two features of a tall organisational structure. [2]
(c) Explain two problems HappyTails might face with poor communication. [4]
(d) Explain two benefits of having a clear chain of command. [6]
(e) Do you think all businesses should use a flat organisational structure? Justify your
answer. [6]
