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
Hello everyone. Today we are going to go through an O Level Business Studies paper that includes four case studies: Nicky’s Travel Business, GTB Cafés, RBG Oil Company, and DLT Manufacturing. I will walk you through each question step by step, explain what the examiner is looking for, and show you how to write clear, well-structured answers that can earn you full marks.
Let’s begin with Question 1, Nicky’s Travel Business. Part (a) asks why a government might support business start-ups. You can say, first, to reduce unemployment by encouraging people to start their own businesses and create jobs. The second reason is to promote economic growth by encouraging new ideas and innovation. Each clear reason earns one mark, so it is best to keep your sentences short and focused.
Part (b) asks how a business can build customer relationships. The first way is by offering excellent customer service that keeps customers satisfied and loyal. The second way is by using social media to connect with customers, answer questions, and promote new offers. Both methods show understanding of how relationships lead to repeat business.
Part (c) asks you to outline one benefit and one limitation of operating in a niche market. The benefit is that there is less competition, which makes it easier to attract loyal customers. The limitation is that the market size is smaller, which means there are fewer potential customers and limited sales. To earn full marks, give one short explanation for each point.
Part (d) focuses on the business plan. The question asks how the sections on business objectives and market data might help Nicky. Business objectives provide clear targets, such as sales or profit goals, that help Nicky measure performance and stay focused. Market data provides useful information about customer preferences and trends, helping her understand demand and set competitive prices. A short explanation of how each one helps the business will earn all the marks.
In part (e), you must explain two characteristics of a successful entrepreneur and choose which is most important. You can mention risk-taking and creativity. Risk-taking is important because entrepreneurs often make bold decisions under uncertainty. Creativity is also essential because it helps develop new and unique products or services. For Nicky’s travel business, creativity is the most important because it allows her to design unique walking holidays that stand out in a niche market. Always remember to finish with a clear justification for your choice.
Now let’s move on to Question 2, GTB Cafés. Part (a) asks you to define the tertiary sector. You can say the tertiary sector provides services rather than goods, for example cafés, shops, and banks. This is a simple definition question, so be precise and clear.
Part (b) asks you to calculate the Return on Capital Employed, or ROCE. Use the formula: profit divided by capital employed, multiplied by 100. So, one hundred fifty thousand divided by seven hundred fifty thousand equals twenty percent. One mark is given for using the correct formula, and another mark for the correct answer.
In part (c), you must outline two ways to improve profit margin. The first way is to reduce costs, for example by finding cheaper suppliers or cutting waste. The second way is to increase prices slightly, provided customers are still willing to buy. Always explain how each method increases profit to secure full marks.
Part (d) asks for two advantages of using social media for promotion. The first advantage is that it is low-cost compared to traditional advertising, which helps GTB reach many people while saving money. The second advantage is that it allows direct communication with customers. This helps build stronger relationships and loyalty. State the advantage and then explain how it benefits the business.
Finally, part (e) asks whether banks are the main external users of accounts. Banks use financial statements to decide if a business is reliable enough to lend money to. However, other external users also rely on accounts, such as investors, suppliers, and the government. The best conclusion is that banks are important, but they are not the only main users of financial data.
Next, let’s look at Question 3, RBG Oil Company. Part (a) asks you to define a laissez-faire leadership style. You can say this is when managers give employees freedom to make most decisions with very little supervision. Keep the answer clear and direct.
Part (b) asks you to identify two roles of a manager. You can mention planning, which involves setting business objectives, and organising, which means arranging people and resources to achieve those goals.
Part (c) focuses on external costs and benefits. An external cost is a negative effect on society, such as pollution from oil drilling. An external benefit is a positive effect, like job creation for local people. Each one should include a short explanation of the impact.
In part (d), the question asks for two IT-based communication methods. The first method is email, which allows fast and clear communication with a large number of employees. The second is video conferencing, which enables managers to hold meetings across countries without travel costs. Mention both methods and explain their usefulness.
Part (e) asks how a pressure group might influence a business. One way is through protests that bring public attention to an issue. Another way is through social media campaigns that reach a wide audience and can affect reputation. The most effective method is social media, as it spreads information quickly and puts pressure on companies to respond.
Finally, Question 4 is about DLT Manufacturing. Part (a) asks you to define an import quota. You can say it is a legal limit on the quantity of a product that can be imported into a country. This is a simple two-mark definition.
Part (b) asks for two benefits of lower taxes. The first is that the business keeps more profit to reinvest. The second is that it can pass savings on to customers by lowering prices. Each reason gets one mark.
In part (c), identify four legal controls over employment. You can say minimum wage laws, health and safety regulations, anti-discrimination laws, and maximum working hour rules. Each accurate control is worth one mark.
For part (d), you must explain why suppliers and land suitability are important when relocating. Being close to suppliers reduces transport cost and delivery time, which keeps production running smoothly. The suitability of land matters because it must be large enough and correctly zoned for industrial use, allowing DLT to expand later. Provide a short explanation after each point.
In part (e), you must judge whether the advantages of flow production are greater than the disadvantages. The advantages are that it increases efficiency, lowers the cost per unit, and is ideal for producing large quantities. The disadvantages are that it requires a high initial cost and reduces flexibility. For a business like DLT with steady demand, the advantages are stronger because they ensure consistent production and long-term savings. End your answer with a balanced and justified conclusion.
To summarise, for short definition questions, be precise and to the point. For four-mark questions, give one point and one clear explanation. For six-mark questions, always discuss both sides and finish with a justified conclusion. Use the business name in your answer to show context and application. Clear structure, relevant examples, and confident conclusions are what help you earn the top grades.
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