Cambridge IGCSE Enterprise 0454 — 2017 Oct/Nov Paper 1 · Variant 1

* 8 9 0 0 6 4 8 1 8 6 * This document consists of 13 printed pages, 3 blank pages and 1 Insert. DC (AL) 133394/3 © UCLES 2017 [Turn over Cambridge International Examinations Cambridge International General Certificate of Secondary Education ENTERPRISE 0454/01 Paper 1 October/November 2017 1 hour 30 minutes Candidates answer on the Question Paper. No Additional Materials are required. READ THESE INSTRUCTIONS FIRST Write your Centre number, candidate number and name on all the work you hand in. Write in dark blue or black pen. Do not use staples, paper clips, glue or correction fluid. DO NOT WRITE IN ANY BARCODES. Answer all questions. Each candidate should have received a copy of the case study prior to the examination. A clean copy of the case study has been provided with this Question Paper. Your answers must be based on the case study and your own enterprise experience and knowledge. At the end of the examination, fasten all your work securely together. The number of marks is given in brackets [ ] at the end of each question or part question. This syllabus is approved for use in England, Wales and Northern Ireland as a Cambridge International Level 1/Level 2 Certificate.

2 0454/01/O/N/17 © UCLES 2017 Section A Answer all the questions. 1 The dance groups wanted more people to watch the show but they needed a larger hall. (a) What is the difference between the following terms? (i) needs and wants … … … …[2] (ii) rewards and challenges … … … …[2] (b) Explain, using an example, how your enterprise project met your customers’ needs and/or wants. … … … … … …[3] [Total: 7]

3 0454/01/O/N/17 © UCLES 2017 [Turn over 2 The dance carnival would be organised as a social enterprise. (a) Explain one advantage and one disadvantage of operating as a social enterprise. Advantage … … … … Disadvantage … … … …[4] (b) (i) Identify two types of business organisation, other than social enterprise. 1 … 2 …[2] (ii) Explain why one of the types of business organisation identified in (b)(i) might be suitable for the dance carnival enterprise. Business organisation identified … Explanation … … … … … …[3] [Total: 9]

4 0454/01/O/N/17 © UCLES 2017 3 Essa and Mercy drew up an action plan that showed the tasks to be completed and who would complete them. (a) Identify two other pieces of information that might be included in an action plan. 1 … … 2 … …[2] (b) When planning, enterprises must answer key strategic questions, such as ‘where is the enterprise going?’ Identify two other key strategic questions. 1 … … 2 … …[2] (c) State two items that would normally be included in a budget. 1 … 2 …[2]

5 0454/01/O/N/17 © UCLES 2017 [Turn over (d) Explain two ways that producing a budget assisted, or could have assisted, the operation of your enterprise project. 1 … … … … … … 2 … … … … … …[6] [Total: 12]

6 0454/01/O/N/17 © UCLES 2017 4 The local town council would have to look at the effect of the dance carnival on all stakeholders. (a) What is meant by stakeholders? … … … …[2] (b) State two external stakeholders in an enterprise. 1 … 2 …[2] (c) State two methods of communication that could be used to communicate with external stakeholders. 1 … 2 …[2] (d) Using examples from Fig. 1 (Insert), explain the difference between horizontal and vertical lines of communication. … … … … … … … …[4] [Total: 10]

7 0454/01/O/N/17 © UCLES 2017 [Turn over 5 Essa completed some market research. The next step would be to start promoting the dance carnival. (a) State three methods of identifying potential customers for an enterprise. 1 … 2 … 3 …[3] (b) Analyse the effectiveness of one method of identifying potential customers. … … … … … …[3] (c) Identify and explain two suitable methods of marketing the dance carnival. 1 Identify … Explain … … … … … 2 Identify … Explain … … … … …[6] [Total: 12]

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9 0454/01/O/N/17 © UCLES 2017 [Turn over Section B Answer all the questions. You may use the case study, your own enterprise experience and your knowledge of enterprise where appropriate to answer the following questions. 6 (a) The dance carnival would be partially funded by sponsorship, and Mercy and Essa considered applying for a government grant or a bank loan. Discuss the benefits and drawbacks on the carnival enterprise of each method of finance: a bank loan and a government grant. [10] … … … … … … … … … … … … … … … … … … … … … …

10 0454/01/O/N/17 © UCLES 2017 (b) Essa and Mercy understood that starting an enterprise was a risk but they knew it could also be rewarding. Evaluate the potential risks and rewards involved in attempting to make the dance carnival a successful enterprise. [15] … … … … … … … … … … … … … … … … … … … … … … … … …

11 0454/01/O/N/17 © UCLES 2017 [Turn over … … … … … … … … … … … … … … … … … … … … … … … … … … … [Total: 25]

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13 0454/01/O/N/17 © UCLES 2017 [Turn over 7 (a) Essa used a number of entrepreneurial skills: she took the initiative and came up with a creative solution to the problem of a lack of space for people. Discuss, using examples, how you used two other entrepreneurial skills during your enterprise project. [10] … … … … … … … … … … … … … … … … … … … … … … … … …

14 0454/01/O/N/17 © UCLES 2017 (b) Essa and Mercy thought that the meeting with the local town council representative had been effective. Evaluate the effectiveness of one or more meetings in your enterprise project. [15] … … … … … … … … … … … … … … … … … … … … … … … … … …

15 0454/01/O/N/17 © UCLES 2017 … … … … … … … … … … … … … … … … … … … … … … … … … … … [Total: 25]

16 0454/01/O/N/17 © UCLES 2017 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 International Examinations Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cie.org.uk after the live examination series. Cambridge International Examinations is part of the Cambridge Assessment Group. Cambridge Assessment is the brand name of University of Cambridge Local Examinations Syndicate (UCLES), which is itself a department of the University of Cambridge. BLANK PAGE