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Cambridge IGCSE

BUSINESS STUDIES 0450/21

*5054923739*

Paper 2 Case Study October/November 2024

1 hour 30 minutes

You must answer on the question paper.

You will need: Insert (enclosed)

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 [ ].
• The insert contains the case study.

This document has 12 pages. Any blank pages are indicated.

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1 (a) Explain four reasons why a business might remain small.

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Reason 3: .........................................................................................................................

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Reason 4: .........................................................................................................................

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(b) Consider the following three roles of packaging for CC’s products. Which role is most important
for CC? Justify your answer.
• Protecting the product
• Promoting the brand image
• Providing information about the product

Protecting the product: .....................................................................................................

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Promoting the brand image: .............................................................................................

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Providing information about the product: ..........................................................................

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Conclusion: .......................................................................................................................

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2 (a) Explain two functions of management for CC’s new manager.

Function 1: ........................................................................................................................

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Explanation: ......................................................................................................................

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Function 2: ........................................................................................................................

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Explanation: ......................................................................................................................

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(b) Consider how a decrease in interest rates and an increase in taxes in country P could affect
CC. Which is likely to have the biggest effect on CC’s profit? Justify your answer.

Decrease in interest rates: ................................................................................................

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Increase in taxes: .............................................................................................................

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Conclusion: .......................................................................................................................

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3 (a) Explain two benefits and two limitations of CC using batch production.

Benefit 1: ..........................................................................................................................

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Limitation 1: ......................................................................................................................

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Limitation 2: ......................................................................................................................

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(b) Consider the two options for CC’s new cookies outlined in Appendix 3. Which option should
CC choose to produce? Justify your answer using appropriate calculations.

Option 1: ...........................................................................................................................

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Option 2: ...........................................................................................................................

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Recommendation: ............................................................................................................
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4 (a) Explain two reasons why CC might need finance.

Reason 1: .........................................................................................................................

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Explanation: ......................................................................................................................

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Reason 2: .........................................................................................................................

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(b) Consider the following three pricing methods CC could use for its existing products. Which
pricing method should CC use? Justify your answer.
• Cost-plus
• Promotional
• Competitive

Cost-plus: .........................................................................................................................

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Promotional: .....................................................................................................................

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Competitive: ......................................................................................................................

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Recommendation: ............................................................................................................

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