Page 355 - Cambridge IGCSE Business Studies

27: Exam technique

Sample answer (written by the authors):

I think he should lease the vehicle. Leasing means he won’t have to find a large sum of money
straightaway. Even though he never owns it, so he doesn’t have a fixed asset that he can sell,
he won’t have a large debt to repay which he would have if he took the loan. He might have five years
of profit but this was for the taxi profits. This is a new service, so there is no guarantee that he
will get enough customers who want to use it. If that’s the case, he can return the lease car, but
if he has the loan, he is stuck with a vehicle and a large loan. If he can’t repay the loan, the bank
could take his personal assets away as he is a sole trader. So I think leasing is better as it’s less
risky for him.

Comments on part (e):

The answer starts with an evaluative comment which is backed up by points made. The references to ‘new service’
and ‘taxi profits’ show good application. There are a number of knowledge points included both for and against each
method, which have been developed to show why they are issues that could influence Omar’s choice.

How to approach case study questions

There are some simple points to remember when answering case study questions.
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■ Always start by reading through the case study insert before you start to answer any
questions. When reading, make a note of any important details that you find out.
Like the short answer paper, this gives valuable background information about this
specific business. For every case study question, you must base your answers on
the information in the case study. Use the information provided to help you when
you write your answer. Try to avoid making general statements – make sure all
points are relevant to this business.
■ Don’t write any answers on the insert as this will not be marked. Remember to write
all your answers in the answer booklet.
■ When answering the longest questions it is sensible to try to prepare a brief plan
before you start writing. This can help you focus your answer on the particular
question set.

All case study questions require more development. This means you will need to
expand your explanations, so don’t just write down a list of points. Try to think

in terms of what each point means and how this could affect the business. In
most instances, you only need to discuss three or four points (depending on the
question). Knowledge is usually only level 1, if you aiming for a top-level grade you
will need to show analysis and evaluation as well.