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Unlock This CoursePaper 1 of your IGCSE Business Studies exam focuses heavily on small businesses and entrepreneurship. This paper tests your understanding of how small businesses operate, the challenges they face and the decisions entrepreneurs must make. Success in this paper requires not just knowledge, but also the ability to apply business concepts to real situations and analyse business problems effectively.
Key Definitions:
Paper 1 lasts 1 hour 30 minutes and is worth 80 marks. It contains multiple-choice questions, short-answer questions and longer analytical questions. The paper focuses on small business operations, marketing, finance and human resources.
Command words tell you what type of answer the examiner wants. Getting these wrong can cost you valuable marks, even if you know the business content well.
State/Identify: Give a short, factual answer
Define: Give the meaning of a term
Outline: Give main features briefly
Calculate: Work out using numbers
Explain: Give reasons why something happens
Analyse: Break down and examine in detail
Discuss: Consider different viewpoints
Evaluate: Weigh up pros and cons
Recommend: Suggest the best option with reasons
With 90 minutes for 80 marks, you have just over one minute per mark. However, some questions require more thinking time than others. Here's how to manage your time effectively:
Multiple Choice (20 marks): 15-20 minutes maximum. Don't spend too long on any single question.
Short Answer Questions (30 marks): 25-30 minutes. Quick, factual responses.
Long Answer Questions (30 marks): 40-45 minutes. These need detailed analysis and evaluation.
Final Check: 5 minutes to review answers and fill any gaps.
Different questions require different answer structures. Understanding what examiners want for each mark allocation will help you score maximum points.
These usually ask you to identify, define, or give short explanations. Keep answers brief and focused. For 'explain' questions, always give a reason or cause-and-effect relationship.
These require detailed explanations or analysis. Use business terminology, give examples and show how different factors connect. Structure with clear paragraphs for each main point.
Paper 1 frequently tests certain areas of small business knowledge. Being familiar with these common question types will help you prepare more effectively.
Cash flow calculations, break-even analysis, sources of finance and financial planning. Always show your working and use appropriate units.
Marketing mix, market research methods, target markets and promotional strategies. Link answers to the specific business context given.
Location factors, production methods, quality control and supply chain management. Consider both advantages and disadvantages.
Sarah wants to open a sandwich shop near a college. She has £15,000 savings and needs £25,000 total. The shop rent is £800/month and she expects to sell 100 sandwiches daily at £3.50 each. Variable costs are £1.50 per sandwich. This type of scenario appears frequently in Paper 1, testing calculations, business decisions and analytical skills across multiple questions.
Good exam technique can make the difference between grades. These strategies will help you maximise your performance on exam day.
Always read questions carefully and identify the command word. Look at the mark allocation to judge how much detail is needed. For calculation questions, identify what you're being asked to find and what information you're given.
• Use business terminology correctly
• Give specific examples from the case study
• Show all calculations clearly
• Answer the question asked, not what you know
• Use bullet points for lists when appropriate
• Writing everything you know about a topic
• Ignoring the business context given
• Making calculations without showing working
• Using vague terms like 'good' or 'bad'
• Spending too long on low-mark questions
Paper 1 includes various question formats, each requiring a different approach. Understanding these formats helps you respond appropriately and efficiently.
Read each question twice before looking at options. Eliminate obviously wrong answers first. If unsure, make an educated guess - there's no penalty for wrong answers. Common topics include business terminology, simple calculations and identifying business concepts from scenarios.
Effective preparation for Paper 1 requires more than just reading textbooks. Active practice with past papers and targeted revision will build your confidence and improve your performance.
Create flashcards for key terms and definitions. Practice calculations regularly. Make mind maps linking different business concepts together.
Work through past paper questions under timed conditions. Practice explaining business concepts using different case study examples.
Practice weighing up advantages and disadvantages. Learn to make justified recommendations based on business evidence and context.
In the weeks leading up to your exam, use this checklist to ensure you're fully prepared for Paper 1 success.
Content Review: Revisit key formulas (break-even, cash flow, ratios). Review common small business challenges and solutions.
Practice Papers: Complete at least two full papers under exam conditions. Review mark schemes to understand what examiners want.
Exam Logistics: Check your exam timetable, location and required equipment. Ensure you have working pens, pencils, ruler and calculator.
Get a good night's sleep before the exam. Arrive early to settle in. Read all questions before starting. Start with questions you find easiest to build confidence. Keep an eye on time throughout the exam.