Instructions:
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Carefully review all given instructions and past paper guidelines before starting each practice session.
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Attempt the past paper questions independently first, just as in an actual exam environment.
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Use a notebook or exam-style sheets to write your answers. Ensure your work is neat, clearly labeled with question numbers, and follows proper exam format.
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After completing each section, check your answers using the provided marking schemes and examiner reports (if available).
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Review your mistakes and rewrite incorrect answers to improve accuracy and exam technique.
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If you find any questions difficult or unclear, watch the video given below for that paper. In that video, each paper is discussed in detail.
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If you still face difficulties or have doubts after watching the video, note them down and discuss them with your instructor or course coordinator for clarification.
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Revise question-solving strategies and repeat similar past paper questions to strengthen your understanding and performance.
Click Here to download the Video Handout
Hi everyone. Today we’re going to go through the O Level Business Studies Paper 2 case study called Everyone Theatre, or ET for short. This paper is all about applying what you’ve learned to a real business situation. I’ll walk you through each question, explain what a good answer looks like, and share some quick tips to help you reach the top marks.
Let’s start with Question 1(a).
It asks: Explain four characteristics needed for an entrepreneur to be successful.
Here’s how to approach this. You need to name four characteristics and explain how each one helps an entrepreneur succeed.
First, risk-taking. Entrepreneurs must be willing to take financial and personal risks when success is uncertain. Without taking risks, no new business could ever start.
Second, creativity. Coming up with new ideas and solutions helps keep the business competitive and adaptable.
Third, self-confidence. Entrepreneurs have to believe in their ideas and inspire others to believe in them too.
And finally, determination. A strong entrepreneur keeps going even after setbacks. Examiners want a short explanation for each, not just a list. Aim for one clear sentence per point.
Now let’s look at Question 1(b).
It’s about promotion methods. You need to consider television advertising, sponsorship, and social media, and then recommend one method for ET.
Television advertising reaches a wide audience but is expensive and not targeted, especially since ET wants to attract young people and tourists.
Sponsorship builds a good reputation by linking ET with community events, but you can’t control the message or say much about your business.
Social media, on the other hand, is low-cost, interactive, and perfect for young audiences. The only downside is that it needs regular updates to stay effective.
So your recommendation should be social media because it’s affordable, fits ET’s young and tech-savvy target market, and allows quick engagement with customers. Always compare all three methods before giving your final choice. That balance earns you higher marks.
Next, Question 2(a).
It asks for two reasons why quality is important for ET.
The first reason is customer satisfaction and loyalty. When people enjoy the show and the service, they come back and tell their friends.
The second reason is brand reputation. As a new business, ET must build trust and a professional image. High quality performances and facilities help achieve that.
Remember, quality doesn’t just mean good products—it means good service, reliability, and presentation too.
Moving to Question 2(b).
This one looks at pricing methods: competitive pricing, cost-plus pricing, and dynamic pricing.
Competitive pricing means matching or slightly undercutting rivals. It can attract customers, but if competitors charge low prices, profits might fall.
Cost-plus pricing means adding a fixed margin on top of cost. It guarantees a profit but ignores customer demand or market trends.
Dynamic pricing means changing prices based on demand—charging more on weekends and less on quiet days. It’s flexible but can annoy customers if prices seem unfair.
For ET, dynamic pricing makes the most sense because theatre demand changes throughout the week. It helps fill seats, maximise revenue, and keep operations efficient.
The tip here is to show how the method fits ET’s situation, not just list pros and cons.
Now on to Question 3(a).
It asks: Explain two reasons why Zane and Zaara want to become a private limited company.
Reason one is limited liability. Their personal money and property are protected if the theatre loses money.
Reason two is easier access to finance. Banks and investors are more confident lending to a limited company than to a partnership.
Write both reasons clearly, and add a short business effect for full marks.
Question 3(b) is about recruitment methods.
You have three options: recruitment agencies, social media advertising, and employee referral schemes.
A recruitment agency is professional and finds qualified candidates quickly, but it’s expensive.
Advertising on social media is cheap and reaches a big audience, but you might get too many unqualified applicants.
Employee referrals mean staff recommend people they know, which can build a loyal team, but it limits diversity and only works if you already have staff.
Your best choice is social media. It’s low-cost, effective for young job seekers, and fits ET’s modern image.
Just remember to mention that ET should use filters or screening steps to handle the large number of applications.
Finally, let’s talk about Question 4(a).
It asks you to explain the difference between fixed and variable costs with examples.
Fixed costs stay the same no matter how many shows ET performs. A good example is rent for the theatre—it doesn’t change whether they do one or ten shows a week.
Variable costs change with output. For ET, things like costumes, lighting, or refreshments increase as more performances are held.
The key to full marks is giving both definitions and one clear example for each.
And the last question, Question 4(b).
You have to consider three external changes: consumer incomes, interest rates, and income tax. Then you must decide which one will affect ET’s success the most.
If consumer incomes fall, people have less money for entertainment, so ticket sales drop.
Higher interest rates mean more expensive loan repayments and possibly lower profits.
Higher income tax also reduces disposable income, similar to lower incomes.
So the greatest impact would be a fall in consumer incomes, because it directly cuts demand for theatre tickets and affects ET’s main revenue source.
Always explain why your chosen factor is greater than the others, and link it to ET’s business type.
Before we wrap up, let’s do a quick summary.
For short questions like 1(a) and 2(a), give clear points with short explanations.
For 12-mark questions, compare all options, discuss both strengths and weaknesses, then finish with a justified decision.
Always link your answers to ET, use examples from the case, and write in a logical, step-by-step way.
If you can show understanding, application, and judgement, you’re already writing like a top-grade student.
Great work everyone. That’s how you approach this paper confidently.
Press “Mark As Complete” Button To proceed
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