Page 349 - Cambridge IGCSE Business Studies

27: Exam technique

■ Remember it isn’t how much you write, but what you write that is likely to
determine how successful you are. Read the question very carefully, so you have
a clear idea of what you are being asked to do. Focus on this as you write your
answer. You have to answer the question set, not the one you wish had been set.
■ The number of marks will help you know the level of detail required. For example,
if they are only two marks for a question, you only need to provide clear and simple
answers.
■ There are lines provided in the answer book to help you. These act as a guide to
show you how much you might be expected to write.
■ Use the command words to help you decide which skills are being assessed in a
question.

So let’s look at some sample answers.

How to approach short answer and structured response questions

Always start by reading the stem of the question. This gives information on a
particular business situation, upon which all parts of that question will be based.
Unless indicated, questions will each have their own context, so don’t use the
information from one question to answer another one.

Call4Cab is a small but successful taxi business, owned by Omar. He is a
sole trader, with three employees. The profi ts of Call4Cab have increased
steadily over the past fi ve years. Omar wants to expand his business. He 347
is thinking of offering a chauffeur service for events such as weddings and
celebrations. He will need a luxury car for this service. Omar is thinking of
the best way to promote this service to people in the city. Table 27.2 has
some cost information.

Variable cost per journey $20
Fixed costs $500 per week
Number of journeys 20 per week

Average price per journey $50
Table 27.2 Cost information for Call4Cab

a What is meant by ‘fi xed costs’? [2]
b Calculate the weekly total costs of the new airport service. [2]
c Identify and explain two ways the size of Omar’s business can
be measured. [4]

d Identify and explain two ways that Call4Cabs could promote this
new service. [6]

e Omar could use a long-term loan to buy the vehicle or he could lease
a luxury car. Which do you think is the better option for his business?
Justify your choice. [6]