Cambridge IGCSE Business Studies 0450 — 2024 May/June Paper 2 · Variant 3

Cambridge IGCSE™ 0450/23 May/June 2024 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 06_0450_23_2024_1.14 © UCLES 2024 *5981200222*

Explain four characteristics of a successful entrepreneur. (a) 1 Characteristic 1: … … … … Characteristic 2: … … … … Characteristic 3: … … … … Characteristic 4: … … … … [8] 06_0450_23_2024_1.14 © UCLES 2024 2

Using Appendix 1 and other information, consider the advantages and disadvantages to RF of the following two methods of promotion. Which method should Santhosh use to attract customers to RF? Justify your answer. (b) • 10% discount on a customer’s first purchase • Free delivery on all products purchased 10% discount on a customer’s first purchase: … … … … … … … … Free delivery on all products purchased: … … … … … … … … Recommendation: … … … … … … … … [12] [Turn over 06_0450_23_2024_1.14 © UCLES 2024 3

Explain two business objectives Santhosh might have for RF. (a) 2 Business objective 1: … … Explanation: … … … … … … Business objective 2: … … Explanation: … … … … … … [8] 06_0450_23_2024_1.14 © UCLES 2024 4

Consider the advantages and disadvantages of the following three sources of finance Santhosh could use when starting up RF. Which source should Santhosh use? Justify your answer. (b) • Owner’s savings • Microfinance • Crowdfunding Owner’s savings: … … … … … … Microfinance: … … … … … … Crowdfunding: … … … … … … Recommendation: … … … … … … [12] [Turn over 06_0450_23_2024_1.14 © UCLES 2024 5

Using Appendix 2 and other information, explain two benefits and two limitations to Santhosh of using break-even analysis. (a) 3 Benefit 1: … … … … Benefit 2: … … … … Limitation 1: … … … … Limitation 2: … … … … [8] 06_0450_23_2024_1.14 © UCLES 2024 6

Using Appendix 3 and other information, consider how the recession might affect RF’s forecast sales and the availability of potential employees. Which is likely to have the most effect on RF? Justify your answer. (b) RF’s forecast sales: … … … … … … … … Availability of potential employees for RF: … … … … … … … … Conclusion: … … … … … … … … [12] [Turn over 06_0450_23_2024_1.14 © UCLES 2024 7

Explain two benefits to RF of having a well-motivated workforce. (a) 4 Benefit 1: … … Explanation: … … … … … … Benefit 2: … … Explanation: … … … … … … [8] 06_0450_23_2024_1.14 © UCLES 2024 8

Consider the following three methods Santhosh could use to communicate the daily work tasks to his employees. Which method should he use? Justify your answer. (b) • Telephone calls • Face-to-face meetings • Text messages Telephone calls: … … … … … … Face-to-face meetings: … … … … … … Text messages: … … … … … … Recommendation: … … … … … … [12] 06_0450_23_2024_1.14 © UCLES 2024 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 Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. 06_0450_23_2024_1.14 © UCLES 2024 12

This document consists of 20 printed pages. © Cambridge University Press & Assessment 2024 [Turn over Cambridge IGCSE™ BUSINESS STUDIES 0450/23 Paper 2 Case Study May/June 2024 MARK SCHEME Maximum Mark: 80 Published This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the examination. It shows the basis on which Examiners were instructed to award marks. It does not indicate the details of the discussions that took place at an Examiners’ meeting before marking began, which would have considered the acceptability of alternative answers. Mark schemes should be read in conjunction with the question paper and the Principal Examiner Report for Teachers. Cambridge International will not enter into discussions about these mark schemes. Cambridge International is publishing the mark schemes for the May/June 2024 series for most Cambridge IGCSE, Cambridge International A and AS Level and Cambridge Pre-U components, and some Cambridge O Level components.

0450/23 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 2 of 20 Generic Marking Principles These general marking principles must be applied by all examiners when marking candidate answers. They should be applied alongside the specific content of the mark scheme or generic level descriptions for a question. Each question paper and mark scheme will also comply with these marking principles. GENERIC MARKING PRINCIPLE 1: Marks must be awarded in line with:  the specific content of the mark scheme or the generic level descriptors for the question  the specific skills defined in the mark scheme or in the generic level descriptors for the question  the standard of response required by a candidate as exemplified by the standardisation scripts. GENERIC MARKING PRINCIPLE 2: Marks awarded are always whole marks (not half marks, or other fractions). GENERIC MARKING PRINCIPLE 3: Marks must be awarded positively:  marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond the scope of the syllabus and mark scheme, referring to your Team Leader as appropriate  marks are awarded when candidates clearly demonstrate what they know and can do  marks are not deducted for errors  marks are not deducted for omissions  answers should only be judged on the quality of spelling, punctuation and grammar when these features are specifically assessed by the question as indicated by the mark scheme. The meaning, however, should be unambiguous. GENERIC MARKING PRINCIPLE 4: Rules must be applied consistently, e.g. in situations where candidates have not followed instructions or in the application of generic level descriptors. GENERIC MARKING PRINCIPLE 5: Marks should be awarded using the full range of marks defined in the mark scheme for the question (however; the use of the full mark range may be limited according to the quality of the candidate responses seen). GENERIC MARKING PRINCIPLE 6: Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should not be awarded with grade thresholds or grade descriptors in mind.

0450/23 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 3 of 20 Social Science-Specific Marking Principles (for point-based marking) 1 Components using point-based marking:  Point marking is often used to reward knowledge, understanding and application of skills. We give credit where the candidate’s answer shows relevant knowledge, understanding and application of skills in answering the question. We do not give credit where the answer shows confusion. From this it follows that we: a DO credit answers which are worded differently from the mark scheme if they clearly convey the same meaning (unless the mark scheme requires a specific term) b DO credit alternative answers/examples which are not written in the mark scheme if they are correct c DO credit answers where candidates give more than one correct answer in one prompt/numbered/scaffolded space where extended writing is required rather than list-type answers. For example, questions that require n reasons (e.g. State two reasons …). d DO NOT credit answers simply for using a ‘key term’ unless that is all that is required. (Check for evidence it is understood and not used wrongly.) e DO NOT credit answers which are obviously self-contradicting or trying to cover all possibilities f DO NOT give further credit for what is effectively repetition of a correct point already credited unless the language itself is being tested. This applies equally to ‘mirror statements’ (i.e. polluted/not polluted). g DO NOT require spellings to be correct, unless this is part of the test. However spellings of syllabus terms must allow for clear and unambiguous separation from other syllabus terms with which they may be confused (e.g. Corrasion/Corrosion) 2 Presentation of mark scheme:  Slashes (/) or the word ‘or’ separate alternative ways of making the same point.  Semi colons (;) bullet points (•) or figures in brackets (1) separate different points.  Content in the answer column in brackets is for examiner information/context to clarify the marking but is not required to earn the mark (except Accounting syllabuses where they indicate negative numbers). 3 Calculation questions:  The mark scheme will show the steps in the most likely correct method(s), the mark for each step, the correct answer(s) and the mark for each answer  If working/explanation is considered essential for full credit, this will be indicated in the question paper and in the mark scheme. In all other instances, the correct answer to a calculation should be given full credit, even if no supporting working is shown.  Where the candidate uses a valid method which is not covered by the mark scheme, award equivalent marks for reaching equivalent stages.  Where an answer makes use of a candidate’s own incorrect figure from previous working, the ‘own figure rule’ applies: full marks will be given if a correct and complete method is used. Further guidance will be included in the mark scheme where necessary and any exceptions to this general principle will be noted.

0450/23 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 4 of 20 4 Annotation:  For point marking, ticks can be used to indicate correct answers and crosses can be used to indicate wrong answers. There is no direct relationship between ticks and marks. Ticks have no defined meaning for levels of response marking.  For levels of response marking, the level awarded should be annotated on the script.  Other annotations will be used by examiners as agreed during standardisation, and the meaning will be understood by all examiners who marked that paper.

0450/23 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 5 of 20 0450/7115/0086 Business Studies – Paper 2 Annotations Annotation Description Use Tick Tick Indicates a point which is relevant and rewardable (used in part (a) questions). Cross Cross Indicates a point which is inaccurate/irrelevant and not rewardable. BOD Benefit of doubt Used when the benefit of the doubt is given in order to reward a response. TV Too vague Used when parts of the answer are considered to be too vague. REP Repetition Indicates where content has been repeated. NAQ Not answered question Used when the answer or parts of the answer are not answering the question asked. APP Application Indicates appropriate reference to the information in the context. OFR Own figure rule If a mistake is made in a calculation, and the incorrect figure that results from the mistake is used for subsequent calculations. SEEN Noted but no credit given Indicates that content has been recognised but not rewarded. L1 Level 1 Used in part (b) questions to indicate where a response includes limited knowledge and understanding. L2 Level 2 Used in part (b) questions to indicate where a response has a more detailed discussion and contains some evidence of justification. L3 Level 3 Used in part (b) questions to indicate where a response includes a well-justified recommendation.

0450/23 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 6 of 20 Question Answer Marks 1(a) Explain four characteristics of a successful entrepreneur. Award 1 mark for each characteristic (max 4). Award 1 additional mark for explanation of each characteristic (max 4). Characteristics might include:  Self-confident – to convince investors to provide finance  Creative – to develop a new idea which is different to existing products/services  Hard-working – many entrepreneurs need to work long hours to make their business successful  Risk taker – prepared to lose all their capital invested to make the business a success  Innovative  Effective communicator  Independent  Determined/perseverance For example: Hard-working (1) many entrepreneurs need to work long hours so that they can make their business successful (1). 8

0450/23 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 7 of 20 Question Answer Marks 1(b) Using Appendix 1 and other information, consider the advantages and disadvantages to RF of the following two methods of promotion. Which method should Santhosh use to attract customers to RF? Justify your answer.  10% discount on a customer’s first purchase  Free delivery on all products purchased Level Description Marks 3 Sound application of knowledge and understanding of relevant business concepts using appropriate terminology. Detailed discussion of both methods of promotion. Well-justified recommendation. Candidates discussing both methods of promotion in detail, in context and a with well-justified recommendation, including why the alternative method of promotion was rejected, should be rewarded with the top marks in the band. 9–12 2 Sound application of knowledge and understanding of relevant business concepts using appropriate terminology. Detailed discussion of at least one of the methods of promotion. Judgement with some justification/some evaluation of choices made. Candidates discussing one or more methods in detail and applying it to the case should be rewarded with the top marks in the band. 5–8 1 Limited application of knowledge and understanding of relevant business concepts. Limited ability to discuss the methods of promotion with little/no explanation. Simple judgement with limited justification/limited evaluation of choices made. Candidates outlining both methods of promotion in context should be rewarded with the top marks in the band. 1–4 0 No creditable response. 0 12

0450/23 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 8 of 20 Question Answer Marks 1(b) Relevant points might include: Advantages Disadvantages 10% discount on a customer's first purchase  Reduces the price of the furniture, this could increase demand from low- income families which is the target market leading to an increase in sales revenue  Customers could afford to buy more than one item of furniture. This could increase the turnover of inventory/make it easier to achieve their break-even output/improve working capital  The revenue from each item of furniture sold is reduced. This would reduce RF's profit margins  Less revenue per item would mean that RF need to sell more than 10 items of furniture before they could break even and start to make a profit Free delivery on all products purchased  Customers may buy bigger/more items of furniture which would increase the sales revenue as they would not need to worry how they were going to get the furniture home  Builds customer loyalty/repeat sales. Customers are more likely to become loyal if they receive a good after sales service  Helps RF to stand out from their competitors. It can be an incentive to customers to buy from RF  RF may have to pay for the fuel to deliver the furniture – increases costs to RF – reduces profit margins  RF may have to purchase/lease a vehicle – increases cash outflows  Will have to recruit delivery drivers – so increasing wage costs – may lead to increased prices – making it more expensive for low- income families

0450/23 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 9 of 20 Question Answer Marks 1(b) Recommendation: Justification might include:  Offering a 10% discount is likely to attract more customers. As the target market is low-income families, price is likely to be the most important element of the marketing mix. The discount will in effect make the price cheaper and more affordable for these families and may therefore increase sales. The free delivery service could increase costs significantly for the small/new business as they will have to buy a van and employ more people. The deliveries could also be over a wide area and so increase fuel costs.  Offering free delivery is the best way to attract new customers as furniture can be big and heavy and this means that it is likely customers will need to have it delivered. As the customers are looking for cheaper products, the total purchase price would be reduced if they did not have to pay a delivery charge.

0450/23 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 10 of 20 Question Answer Marks 2(a) Explain two business objectives Santhosh might have for RF. Award one mark for each business objective (max 2). Award a maximum of 3 additional marks for explanation of each business objective – one of which must be applied to this context. Relevant business objectives might include:  Business survival – greater risk of failing – lose personal possessions  Profit – provide funds for reinvestment – interest does not need to be paid so cheaper than loans  Service to the community/social/ethical – wants to provide jobs and support for disadvantaged groups in society  Increase market share For example: Business survival (1) as RF is a new business (app) it is at a greater risk of failing (1) and Santhosh would lose his future source of income/all his personal possessions (1). Application could include: new/start-up business, carpenter, school leavers, small business, sole trader, $5000 start-up capital, furniture, low-income families, 10% discount, free delivery, figures from Appendix 2, recession. 8

0450/23 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 11 of 20 Question Answer Marks 2(b) Consider the advantages and disadvantages of the following three sources of finance Santhosh could use when starting up RF. Which source should Santhosh use? Justify your answer.  Owner’s savings  Microfinance  Crowdfunding Level Description Marks 3 Sound application of knowledge and understanding of relevant business concepts using appropriate terminology. Detailed discussion of two or more sources. Well-justified recommendation. Candidates discussing all three sources in detail, in context and with a well-justified recommendation, including why the alternative sources were rejected, should be rewarded with the top marks in the band. 9–12 2 Sound application of knowledge and understanding of relevant business concepts using appropriate terminology. Detailed discussion of at least one source. Judgement with some justification/some evaluation of choices made. Candidates discussing two or more sources in detail and applying them to the case should be rewarded with the top marks in the band. 5–8 1 Limited application of knowledge and understanding of relevant business concepts. Limited ability to discuss the sources with little/no explanation. Simple judgement with limited justification/limited evaluation of choices made. Candidates outlining the three sources in context should be rewarded with top marks in the band. 1–4 0 No creditable response. 0 12

0450/23 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 12 of 20 Question Answer Marks 2(b) Justification might include: Advantages Disadvantages Owner's savings  It should be immediately available to the owner – allowing Santhosh to set up his new start-up business quickly  No interest is paid, this will allow costs to be kept low  Does not have to be repaid  The owner may not have enough savings to pay the $5000 start-up costs  There may be an opportunity cost – he would lose any interest that his savings could make if he left them in the bank  Risks losing all his own money – as his business is a sole trader Microfinance  Small amounts available as he only needs $5000 to buy tools and pay for rent  No security needed/collateral free loan. As a small business it is unlikely that he would have many assets to offer as security  Access to finance that would not be available from other more traditional sources/banks – as a new business RF would be seen as high risk  Only provides small amounts of finance – may not be sufficient to meet RF's requirements  May have an increased risk of harsh/short repayment terms  Will have restrictive terms attached – this means that RF may have to fulfil certain criteria or commit to following certain rules before the finance is received

0450/23 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 13 of 20 Question Answer Marks 2(b) Advantages Disadvantages Crowdfunding  No initial fees to be paid – meets his objective of keeping the costs low  Public reaction can be tested – Santhosh can judge the demand for recycled furniture  Can raise substantial sums – he can raise sufficient money to invest in his tools and pay rent  Available to entrepreneurs when other sources have turned them down  If the total amount of $5000 required is not raised, RF will need to repay money  It publicises his idea and this may allow competitors to steal the idea  Platform can reject the idea – it may delay starting the business Recommendation Justification might include:  Owner's savings is the best source for his new business as it does not require any interest to be paid. This will reduce the monthly repayments and meet the objective of keeping costs low which could lead to increased profits. If microfinance was used he might find it difficult to make the repayments in the time set by the lender. If $5000 was not raised using crowdfunding, he would have to return all the capital back to the investors and might not be able to start his business.  Microfinance may be the best option as Santhosh only requires a small amount and as he is a sole trader this reduces the risk of using all of his savings.  Crowdfunding would not require an initial fee or interest to be paid, therefore less cash outflow in the short term. As the business is going to train school leavers there is a good chance the community might want to invest money.

0450/23 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 14 of 20 Question Answer Marks 3(a) Using Appendix 2 and other information, explain two benefits and two limitations to Santhosh of using break-even analysis. Award one mark for each benefit/limitation identified (max 4). Award a maximum of 1 additional mark for each explanation in context (max 4). Benefits might include:  Provides a target output RF needs to sell before a profit is made – at the break-even output of 10 items  The impact of business decisions can be shown by redrawing the chart – if the variable costs increase from $4 per month  It can be used to show a margin of safety to protect against losses if a fall in sales occurs – from the current margin of safety of 10 Limitations might include:  The break-even chart is drawn assuming all goods produced are sold - forecast sales are 20 items of furniture per month  Fixed costs will only remain fixed if the scale of production does not change – at $50 per month  Revenue may not be the same – RF may decide to offer a 10% discount  Can only be used for a single product – RF sells a range of furniture and not a single item priced the at the same price  It assumes that variable/total costs can be drawn as straight lines For example: It will provide a target of how much RF needs to sell each month before they make a profit (1). RF needs to sell 10 items of furniture before a profit is made (app). Application could include: new/start-up business, carpenter, school leavers, small business, sole trader, $5000 start-up capital, furniture, low-income families, 10% discount, free delivery, recession, break-even output 10, fixed costs $50, total revenue $180, total cost $130. 8

0450/23 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 15 of 20 Question Answer Marks 3(b) Using Appendix 3 and other information, consider how the recession might affect RF’s forecast sales and the availability of potential employees. Which is likely to have the most effect on RF? Justify your answer. Level Description Marks 3 Sound application of knowledge and understanding of relevant business concepts using appropriate terminology. Detailed discussion of both ways. Well-justified conclusion. Candidates discussing both ways in detail, in context and with a well-justified conclusion, including why the alternative way has less effect, should be rewarded with the top marks in the band. 9–12 2 Sound application of knowledge and understanding of relevant business concepts using appropriate terminology. Detailed discussion of at least one way. Judgement with some justification/some evaluation of choices made. Candidates discussing at least one way in detail and applying it to the case should be rewarded with the top marks in the band. 5–8 1 Limited application of knowledge and understanding of relevant business concepts. Limited ability to discuss the ways with little/no explanation. Simple judgement with limited justification/limited evaluation of choices made. Candidates outlining both ways in context should be rewarded with top marks in the band. 1–4 0 No creditable response. 0 12

0450/23 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 16 of 20 Question Answer Marks 3(b) Relevant points might include: RF's forecast sales  Potential increase in the number of low-income families which leads to an increased demand for recycled furniture – amount of sales revenue might increase  Reduced supply of old furniture – as people delay purchasing new furniture from retailers  Recession will result in higher unemployment – reduced income for families – reduced demand for furniture Availability of potential employees for RF  Greater availability of employees – lower employment levels lead to more people looking for work – making it easier for RF to recruit its 10 workers  Potential employees may be more willing to accept a lower wage – especially school leavers as they may find it more difficult to find a job  Availability of skilled workers for RF may not change – as other businesses may retain their skilled workers such as carpenters Conclusion Justification might include:  Forecast sales are likely to have the most effect on RF because it is important for there to be an inflow of cash from sales to cover the high start- up expenses. The recession may lead to higher revenue as the target market of low-income families is likely to increase due to rising unemployment. RF's ability to recruit skilled employees may not change as RF only requires 3 skilled carpenters and the recession may not affect their availability.  The availability of employees for RF will have the greatest effect as the new business requires a combination of skilled and unskilled workers. The recession may make it easier to recruit skilled workers and with these workers RF will be able to supply recycled furniture.

0450/23 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 17 of 20 Question Answer Marks 4(a) Explain two benefits to RF of having a well-motivated workforce. Award 1 mark for each benefit of having a well-motivated workforce (max 2). Award a maximum of 3 additional marks for each explanation of the benefit of having a well-motivated workforce is important – one of which must be applied to this context. Benefits might include:  Low labour turnover – a loyal workforce – reduces costs of recruitment  Low rate of absenteeism – reduces disruption caused by an employee absent from work – more able to meet demand  Low rates of industrial action – avoiding damage to customer relations - maintaining reputation  Increases productivity – fewer employees are needed to achieve the same level of output  Higher quality goods and services – increased customer loyalty – increases revenue  More competitive – which may increase market share For example: Increases productivity (1) RF will have 10 employees (app) so they can each produce more which reduces the need for additional employees (1) which helps to reduce labour costs (1). Application could include: new/start-up business, carpenter, school leavers, small business, sole trader, $5000 start-up capital, furniture, low-income families, 10% discount, free delivery, figures from Appendix 2, recession. 8

0450/23 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 18 of 20 Question Answer Marks 4(b) Consider the following three methods Santhosh could use to communicate the daily work tasks to his employees. Which method should he use? Justify your answer.  Telephone calls  Face-to-face meetings  Text messages Level Description Marks 3 Sound application of knowledge and understanding of relevant business concepts using appropriate terminology. Detailed discussion of two or more methods of communication. Well-justified recommendation. Candidates discussing all three methods of communication in detail, in context and with a well-justified recommendation, including why the alternative methods were rejected, should be rewarded with the top marks in the band. 9–12 2 Sound application of knowledge and understanding of relevant business concepts using appropriate terminology. Detailed discussion of at least one method of communication. Judgement with some justification/some evaluation of choices made. Candidates discussing two or more methods of communication in detail and applying them to the case should be rewarded with the top marks in the band. 5–8 1 Limited application of knowledge and understanding of relevant business concepts. Limited ability to discuss the methods of communication with little/no explanation. Simple judgement with limited justification/limited evaluation of choices made. Candidates outlining all three methods of communication in context should be rewarded with top marks in the band. 1–4 0 No creditable response. 0 12

0450/23 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 19 of 20 Question Answer Marks 4(b) Relevant points might include: Advantages Disadvantages Telephone calls  Speaks directly to each employee – makes them feel valued and included in the business  Immediate feedback is possible – Santhosh will know straight away if any of the 10 employees do not understand which tasks need to be finished and need to be done first  Employees may not answer – delay in Santhosh being able allocate tasks at the start of each day  Poor connection – may distort the message and make it difficult to understand  Could take a long time to call all 10 employees everyday  No permanent record of the conversation, if a carpenter does the wrong job there is no proof that they were asked to do a different task Face-to-face meetings  Gives all 10 employees a chance to meet, which can help to make them feel part of the team  It is a small business so this would give everyone a chance to directly contribute ideas and collaborate as feedback is immediate  Points can be clarified if not understood immediately  Time consuming – employees could be training school leavers rather than in a meeting  School leavers may not have the confidence to contribute

0450/23 Cambridge IGCSE – Mark Scheme PUBLISHED May/June 2024 © Cambridge University Press & Assessment 2024 Page 20 of 20 Question Answer Marks 4(b) Advantages Disadvantages Text messages  Provides a written record for Santhosh to refer to if the 10 employees do not meet their targets  Can be referred to at different times of the day if tasks forgotten  Do not have to be in the workplace to read the message – buyers may be out finding furniture  Some employees may not have access to their mobile phones – it relies on an internet/phone connection  The daily work tasks may not be seen if there are too many text messages sent  It can become a distraction as employees may use it to send social messages and just chat Conclusion Justification might include:  Telephone calls are a good method because you can get immediate feedback and employees can clarify their work tasks so that mistakes are not made. Daily face-to-face meetings may take too much time and not all employees may be able to attend, and not all employees may have access to text messages on their phones.  Face-to-face meetings would be the best way to communicate as RF is a small business and so all employees would have the opportunity to contribute. They could be informal which might help build motivation.  Text messages could be the best way for Santhosh to communicate with his volunteers. He can include details so the Marketing Manager can refer back to the tasks set. It is a direct form of communication that goes straight to the employees themselves so it cannot be missed.