Page 347 - Cambridge IGCSE Business Studies

27: Exam technique

AO2 Application: using your knowledge and understanding of terms, concepts,
theories and techniques and applying them to a variety of business problems
or issues.

You need to use your knowledge of business studies to select what is appropriate

for a particular situation. The key thing to remember is that whatever the
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organisation – factory, farm or retailer – the principles are the same. You have to
Just quoting the name of the
business is not application. decide what is important for each business depending on the type, size and what
you know about its business circumstances. Most questions will provide you with
some background information about the type of business. Try to focus your answer
on the specific business mentioned. This is called ‘context’. It is important to use

the information given when answering questions – this is application. Don’t just
state the business’s name but try to think about what it makes or sells.
For example: ‘Identify and explain two possible consequences of low
productivity for Kelvin’s business.’
If you don’t apply your knowledge of Kelvin’s business in your answer, you will
not have fully answered the question.
Application can also be shown in calculation questions or if you are asked to
select something appropriate for a particular business e.g. methods of advertising
that a small business might use.

AO3 Analysis: this involves selecting, explaining or interpreting information to show

good understanding of terms and effects of decisions. 345

This means don’t just list points but try to develop your reasons to show how or

why it is an issue that needs to be considered. You could be asked to select and
interpret some data, or a chart and explain what this might mean for a given
business situation.
For example, imagine the question is based on a small business (Company A)

that has cash-flow problems. The question might be: ‘Identify and explain two
sources of finance that Company A might use to solve its cash-fl ow problem.’

Remember not all the knowledge points you have learned will be relevant, so
you will have to choose the relevant sources and then explain how or why these
particular sources might be appropriate for this business.

AO4 Evaluation: this is presenting developed arguments or reasoned explanations,
and being able to make judgements and decisions.

Evaluation is a difficult skill to learn, so practice is important to help you develop

and improve this skill. This type of question will ask you for your opinion. Giving

an opinion and making a decision on its own isn’t evaluation. You have to be
able to say why you hold this point of view. This involves developing arguments

and making decisions which you can support with reasons. In many questions
there is no right or wrong answer, so it is really about how well you can support
your decision. Focus on identifying and explaining relevant points that support
what you are saying. If possible try to include at least one point which off ers an

alternative view. This can lead to a more balanced answer.