Page 352 - Cambridge IGCSE Business Studies

Cambridge IGCSE Business Studies 27: Exam technique

Relevant points might include:
■ Number of employees [k] – Omar only employs three drivers, so with so
few drivers he cannot really be described as a large business.
■ Capital employed [k] – as Omar is a sole trader he is not likely to have large
amounts of capital employed.
■ Level of revenue [k] – with only three drivers, he is not likely to be able to
have a large level of sales as they can only drive for a certain number of miles
before they have to rest.
■ Market share [k] – with only three drivers, it is unlikely to be the largest taxi
business in the city so it won’t have a lot of passengers.

Application could include reference to: sole trader; taxi business; cars;
drivers; journeys; mileage; passengers.

Sample answer (written by the authors):

Way 1: the number of employees
Explanation: Omar only has three employees. A larger business would have many more drivers so he can
operate more taxis to get more passengers.

350 Way 2: profi ts

Explanation: Omar’s profits have increased for the past five years, but he still doesn’t have a lot of money
to invest in the business as he is thinking of taking out a loan to buy the new car.

Comments on part (c):
Way 1: This response has identified employees as a measure, and by linking it to both the idea of drivers and three
employees it is clearly applied.
Way 2: Profit is not accepted as a measure of size, as there are too many other factors that can affect whether a

business makes a profit. The explanation does not include any valid points as it is still focused on profit.

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

Extract from sample mark scheme:
Knowledge [2 × 1] – award 1 mark for each relevant way [max 2].

Application [2 × 1] – award 1 mark for each relevant reference to Call4Cabs.
Analysis [2 × 1] – award 1 mark for each relevant explanation.