Cambridge IGCSE Business Studies 0450 — 2021 Feb/March Paper 2 · Variant 1

Cambridge IGCSE™ 0450/22 February/March 2021 1 hour 30 minutes BUSINESS STUDIES Paper 2 Case Study 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. [Turn over 03_0450_22_2021_1.8 © UCLES 2021 *6803863505*

Explain two advantages and two disadvantages of being a sole trader. (a) 1 Advantage 1: … … … … Advantage 2: … … … … Disadvantage 1: … … … … Disadvantage 2: … … … … [8] 03_0450_22_2021_1.8 © UCLES 2021 2

Consider the two orders for ST products in Appendix 2. Which order should ST accept? Justify your answer using relevant calculations. (b) Order A: … … … … … … … … Order B: … … … … … … … … Conclusion: … … … … … … … … [12] [Turn over 03_0450_22_2021_1.8 © UCLES 2021 3

Explain two ways Saanvi can increase the added value of ST products. (a) 2 Way 1: … … Explanation: … … … … … … Way 2: … … Explanation:… … … … … … [8] 03_0450_22_2021_1.8 © UCLES 2021 4

To expand the business in the future ST need to decide whether to change from niche marketing to mass marketing. Consider the advantages of both methods. Which method should ST use? Justify your answer. (b) Niche marketing: … … … … … … … … Mass marketing: … … … … … … … … Recommendation: … … … … … … … … [12] [Turn over 03_0450_22_2021_1.8 © UCLES 2021 5

Explain two benefits to ST of having well-motivated employees. (a) 3 Benefit 1: … … Explanation: … … … … … … Benefit 2: … … Explanation: … … … … … … [8] 03_0450_22_2021_1.8 © UCLES 2021 6

ST need to recruit a new Operations Manager. Consider the advantages and disadvantages of the three applicants in Appendix 3. Which of the applicants should ST employ? Justify your answer. (b) Aarav: … … … … … … Vivaan: … … … … … … Sai: … … … … … … Recommendation: … … … … … … [12] [Turn over 03_0450_22_2021_1.8 © UCLES 2021 7

Explain four reasons why high quality is important to ST. (a) 4 Reason 1: … … … … Reason 2: … … … … Reason 3: … … … … Reason 4: … … … … [8] 03_0450_22_2021_1.8 © UCLES 2021 8

Consider how the following two changes might affect ST. Which change is likely to have the most effect on ST’s revenue? Justify your answer. (b) • The business cycle in country Z moves into a slump • The government of country Z focuses on reducing unemployment The business cycle in country Z moves into a slump: … … … … … … … … The government of country Z focuses on reducing unemployment: … … … … … … … … Conclusion: … … … … … … … … [12] 03_0450_22_2021_1.8 © UCLES 2021 9

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BLANK PAGE Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. Cambridge Assessment International Education is part of the Cambridge Assessment Group. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which itself is a department of the University of Cambridge. 03_0450_22_2021_1.8 © UCLES 2021 12