IGCSE Edexcel-

Revision worksheets

IGCSE
Business Studies Revision sheets
(For year 10 & Year 11)

By Saadia Noureen
Teacher – Business Studies
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Chapter 1 & 2:
Q1: Business activities have a lot of stakeholders involved in it.

Define stakeholders.

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Define shareholders.

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Q2: Write down the business stakeholders in the boxes.

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Q3: What is meant by business objective?

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Q4: What objectives are set by private sector organization?

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Q5: How private businesses objectives are different from public sector businesses?
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Chapter 3 & 4:
Q1: Limited companies are large businesses.

Explain two features of Limited companies.

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Explain two differences of limited companies and private limited companies.

Difference1:____________________________________________________________
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Difference2:____________________________________________________________
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Q2: Public limited companies have to produce a Memorandum of Association.

What information would this document contain?

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Q3: Outline why going public is expensive?

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Q4: Discuss three advantages and three disadvantages of a business as a sole trader.

Advantages Disadvantages

Q5: Define entrepreneur.

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Q6: Discuss the role played by entrepreneurs in business.

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Q 7: Define the following terms:

Franchise______________________________________________________________
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Franchisee_____________________________________________________________
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Franchisor_____________________________________________________________
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Q8: What are the benefits of franchise to a franchisor?

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Q9: What are the benefits of franchise to a franchisee?

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10: Outline why going public is expensive?

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Q11: Explain three ways in which Limited company differ from sole trader.

Difference1:____________________________________________________________
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Difference2:____________________________________________________________
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Chapter 5:

Q1: Define globalization.

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Q2: Write down key features of globalization.

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Q3: What is meant by Multinational Companies?

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Q4: List down a advantages and disadvantages of MNCs (Multinational Companies).

Advantages Disadvantages

Chapter 6 & 7:

Q1: What is meant by production?

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Q2: List down the four factors of production and state an example with each.

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2.____________________________________________________________________
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3.____________________________________________________________________
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4.____________________________________________________________________
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Q3: Define the terms:

Labour intensive:
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Capital intensive:

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Q4: Identify two benefits and drawbacks of division of labour.

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Q5: what is meant by “division of Labour”?

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Chapter 8:

Q1: Business activity is classified into three sectors.

Define them and give examples.

Primary sector

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Secondary sector
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Tertiary sector

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Chapter 9:

Q1: List down the factors affecting the business location?

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Q2: Business location decisions are influenced by changing environment. Discuss

these factors.
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Q3: What factors are considered to choose business location?

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Chapter 10:

Q1:
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how does the

government
influence
business activity?

Q 2: define the following terms:

Consumer legislation:
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Economic policy
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Regional policy
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Health and safely employment legislation

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Environmental legislation
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Competition policy
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Protectionism
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Chapter 11:

Q 1: Match the definition to the related term:

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Inflation Money paid to the Tariff Also called a Negative

government. Externality.

Taxation The lowest point in External Groups of workers who

the Economic Cycle. Cost come together to protect
their interests.

Slump Makes exports Trade Gross Domestic Product.

cheaper. Union

Exchange Rate People who are G.D.P. This is lower in Asia, than
Depreciation willing to work, but it is in Europe.
cannot find a job.

Unemployment Another word for Minimum Wage The cost of borrowing, or

Recovery. reward for saving.

Growth Greenpeace is an Interest Rates Uses Factors of Production

example of a… in more than one country.

Pressure Group Using Taxation and Multi-National A period of high GDP

Government Company growth, and probable
Spending to control inflation.
GDP.
Fiscal The price of one Boom Minimum wage, working
Policy currency, in terms of hours and anti-
another. discrimination are areas
of…
Exchange Rate A period of falling Employment Law Using Interest Rates to
GDP. control GDP.

Recession A limit on the Monetary Policy Lots of this, could make

number of imports. your product more Price
Elastic.
Quota Makes exports more Competition Judgements about what is
expensive. morally right or wrong.

Exchange Rate A tax on imports. Ethics A rise in prices.

Appreciation

Chapter 12:

Q1: WEAK or STRONG???

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Exchange rate weak / strong £

£1 = $1.1

£1 = 0.97EURO

£1 = 95Yen

£1 = $2.6

$1 = £2

1EURO = £0.68

85Yen = £1

IMPORT OR EXPORT?

Q 2:

Define protectionism.
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Write down the definition of the following methods of protectionism:

Tariffs

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Quotas

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Subsidies

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Administrative barriers

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Depreciating exchange rate

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Chapter 13:

Activity sheet- Recycling, holiday abroad and the environment

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Chapter 14:
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Chapter 15:
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Q1:

Q 2:

Chapter 16:
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Q1: What are businesses divided into different departments?

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Q2: Explain the functions production department.

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Q3: list down the activities of the following departments:

Marketing department:

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Finance department:

 ________________________________
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 ________________________________
 ________________________________

Human resources (HR) department:

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 _________________________
 _________________________
 _________________________
 _________________________
 _________________________
 _________________________
 _________________________
 _________________________

Chapter 17:
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Q 1:

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Q 2:
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Chapter 18:
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Q 1: Answer the following questions giving reasons to justify your answer

a. Your class has participated in a collaborative project with a school in USA. Give any two
methods that you would use for communication with that school.

Method :
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Reason :
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b. A company’s CEO has scheduled a video conference with the board of directors. The
technical team has arranged a monitor, microphone, speaker, video camera. What is the
additional hardware required?

Hardware:

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Reason :
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Chapter 19:
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Q1: Discuss two benefits of external recruitment.

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Q2: Discuss two benefits of internal recruitment.

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Q3: Define Job Description.

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Chapter 20:
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Q 1: define employment protection.

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Q 2: what is written in a contract of employment?

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Q 3: health and safety legislation forces businesses to provide:

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Chapter 21:
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Q1: What is the purpose of induction training?

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Q2: What might new recruits learn during the induction training?

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Q3: Define ‘On-the-job’ training.

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Q4: Discuss the different approaches of ‘on-the-job’ used by a business.

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Q5: Define ‘off-the-job’ training.

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Q6: Discuss three advantages of ‘On-the-job’ training and three advantages of ‘off-the-
job’ training.

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Q7: List down the reasons for training.

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Chapter 22:

Q1: What is meant by motivation?

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Q2: What are the benefits of well-motivated employees?

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Q3: draw the Maslow’s hierarchy of needs.

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Q4: Show ‘Motivators’ and ‘Hygiene’ factors of Herzberg two-factor theory in the table
below:

Motivators Hygiene factors

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Chapter 24:

Q 1: What is meant by fringe benefits? Also draw the diagram showing different fringe
benefits.

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Q2: Outline two possible advantages of fringe benefits to businesses.

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Chapter 25-26
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Chapter 29
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Chapter 30

Following table about BatCraft Pty manufacturer shows some cost information. Read the questions
carefully and answer them using the information in the case study.

(a) Using examples from the case study state what is meant by fixed cost.
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(b) Calculate fixed cost of BatCraft Pty.

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(c) Calculate variable cost per bat of BatCraft Pty.

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(d) Calculate variable cost if 4800 bats are produced.

Variable cost = --------------------------- × -------------------------

* (hint: Variable cost = variable cost per bat × production)

(e) Calculate total cost of producing 4800 bats.

Fixed cost =
Variable cost = --------------------------- × -------------------------
(hint: Variable cost = variable cost per bat × production)

Total cost = Fixed cost + variable cost

----------- = ---------------- + --------------------

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Chapter 31

i. How many boxes need to break even?

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ii. What is total revenue at the break-even point?

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iii. If 500 boxes are produced, what is the

Amount of profit
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Margin of safety
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Chapter 32

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Chapter 33

Tariq Khan runs a small construction company. He specializes in the construction of conservatories,
property extensions and loft conversions. He employs six other people and has enjoyed a profitable run
since setting up in business in 2002. Figure below shows an incomplete balance sheet for his business at
31 July 2009.

(a) Calculate the value of (i) stocks; (ii) overdraft; (iii) net assets

(b) Using this case study as an example, outline the difference between fixed assets and current
assets.
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Chapter 34

Write the reasons of interests of different stakeholders:

stakeholders Reason of interest in the business’ accounts

Managers

Employees

Owners

Shareholders

Bankers

Suppliers

Investors and
financial analysts

Government

Competitors

The media

Tax authorities

Auditors

Registrar of
companies
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Chapter 35

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Chapter 36

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Chapter 37

NIVEA Sun---Segmentation-Case study

NIVEA identifies market segments that meet individual consumer needs. Segmentation occurs when a
market is split into sub-markets (segments) which can respond in similar ways to different marketing
activities. Each segment:

 contains consumers with similar needs or tastes

 is best satisfied by products targeted to meet their specific needs.

The three main product segments

The diagram above shows the three main product segments that make up the NIVEA Sun range. As you
will see, there are a variety of products in each, which can also be segmented as shown.

1. Protection

It is vital that skin is adequately protected against the sun”s harmful effects (although no sunscreen can
provide total protection). NIVEA Sun provides products that enable people to be as safe as possible.
NIVEA Sun also encourages the use of other forms of protection (e.g. wearing a sun hat and avoiding
midday sun). Protection is the largest segment in the sun care market with a purchase penetration of 28%.
NIVEA Sun is the protection segment market leader by value (i.e. more money is spent on NIVEA Sun
protection products than any other sun care brand in the UK). When choosing sunscreens there are two
important factors to consider:

i. skin type

The chart below shows segmentation by skin type. The level of protection required for each segment will
vary according to generalized skin types (as seen below):
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Skin type applies to children, as well as adults. Children’s skin is thinner and its repair mechanism is not
yet fully developed. As a result they require extra protection and sun screens that are specifically
developed for their skin.

ii. Location

NIVEA Sun provides a range of lotions and sprays targeted at different climates and to users with
different skin types. Someone with fair skin may be well protected with a SPF 20 product when in
England, but if they were in Barbados they would need SPF 40.

2. After Sun

NIVEA Sun is the market leader within this segment in the UK, which has been growing rapidly.

3. Self-tan

In contrast to protection and after sun, the self-tan category is concerned mostly with cosmetic appeal.
Many adults use self-tan to have an all year round sun kissed glow.

Market segments are:

Organisations use market segmentation because:

NIVEA
Sun
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One way that Nivea sun segments its market is through user ‘attitudes’ – see Sun Range in the case study,
suggest a product (including the SPF) that will be suitable for each of the attitudinal segments below:

Segment Product

Concerned consumers

Sun avoiders

Conscientious sun lovers

Careless tanners

Naïve beauty conscious

Chapter 39

Define pricing strategies.

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Fill in the table given below:

Strategy Definition Advantages disadvantages

Cost plus

Competition

Penetration

Skimming
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promotional

Chapter 42

Product

(a) What is the main role of packaging ofr the products shown in the image?

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Business might need t o change their packaging when selling goods abroad.

(b) Suggest reasons for doing this.

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Chapter 43

1. Using the following words completed the gap 6 Marks

Primary Research New Information Expensive

Relevant Questionnaire Secondary research

Field research is also known as ____________________. It is useful finding out

_______________a popular method is to use a questionnaire __________________. A
benefit of using field research is that the information collected is directly
_______________________ to the needs of the business. A disadvantage is that the
information can be very ____________________ to collect. Desk research is also known
as ________________________

2. List the advantages and disadvantages of primary research. 6 Marks

Advantages Disadvantages
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3. List the advantages and disadvantages of secondary research. 6 Marks

Advantages Disadvantages

4. Explain the difference between an qualitative and quantitative data. 4 Marks

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Extension:

5. List the methods of primary research. 6 Marks

6. List the sources of secondary research. 6 Marks

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Chapter 43

1. Give three examples of economies of scale that a supermarket might gain

as it expands and opens new stores

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2. Explain two possible diseconomies of scale for the supermarket as it

expands

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Chapter 45

Job Batch Flow

Definition: Definition: Definition:

 One-off, specialised  Made in batches  Continuous production.
production. (different shapes, colours,  Usually mass production
Tailor made, meets sizes, etc. & ‘capital intensive’ (relies
specific customer OR heavily on mchines).
requirements.  Made in stages (doors,
 Usually ‘labour intensive’ bonnets, and engines) and
(relies heavily on skilled then assd.
workers).
Advantages
 Can sell the product for a  Workers can be put where they  Productivity is high and
premium price. have the best skills e.g. best at therefore, unit costs are low.
 Worker satisfaction is high, making doors or bonnets.  Workers can be paid low wages
therefore less problems with  Production levels of different because they arekilled.
motivation, absenteeism & labour products can be altered to meet
turnover. demand.
 The goods have already been
ordered (and possibly paid for), so
they have already been sold
(improving cash flow).

Disadvantages
 Requires highly skilled workers  Lots of storage space needed  Boredom for workers can lead
which can be expensive (high for various parts. to mistakes, absenteeism, high
wages and high training costs).  There will be ‘downtime’ whilst labour turnover, and general de-
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 Specialist equipment might be the machines are being changed motivation.

needed for one job, but not the from making one product to  High cost of machinery in the
next. another. short ter
 Production is slow, so
customers need to be willing to
wait longer.

Chapter 46

(a) Calculate the labour productivity in each of the four factories.

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(b) Which factor is Hurber likely to close down?
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Chapter 47

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Chapter 48

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