Cambridge IGCSE ™: Business Studies 0450/22 October/November 2022
Cambridge IGCSE ™: Business Studies 0450/22 October/November 2022
Cambridge IGCSE ™: Business Studies 0450/22 October/November 2022
Published
This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the
examination. It shows the basis on which Examiners were instructed to award marks. It does not indicate the
details of the discussions that took place at an Examiners’ meeting before marking began, which would have
considered the acceptability of alternative answers.
Mark schemes should be read in conjunction with the question paper and the Principal Examiner Report for
Teachers.
Cambridge International will not enter into discussions about these mark schemes.
Cambridge International is publishing the mark schemes for the October/November 2022 series for most
Cambridge IGCSE™, Cambridge International A and AS Level components and some Cambridge O Level
components.
These general marking principles must be applied by all examiners when marking candidate answers.
They should be applied alongside the specific content of the mark scheme or generic level descriptors
for a question. Each question paper and mark scheme will also comply with these marking principles.
• the specific content of the mark scheme or the generic level descriptors for the question
• the specific skills defined in the mark scheme or in the generic level descriptors for the question
• the standard of response required by a candidate as exemplified by the standardisation scripts.
Marks awarded are always whole marks (not half marks, or other fractions).
• marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit
is given for valid answers which go beyond the scope of the syllabus and mark scheme,
referring to your Team Leader as appropriate
• marks are awarded when candidates clearly demonstrate what they know and can do
• marks are not deducted for errors
• marks are not deducted for omissions
• answers should only be judged on the quality of spelling, punctuation and grammar when these
features are specifically assessed by the question as indicated by the mark scheme. The
meaning, however, should be unambiguous.
Rules must be applied consistently, e.g. in situations where candidates have not followed
instructions or in the application of generic level descriptors.
Marks should be awarded using the full range of marks defined in the mark scheme for the question
(however; the use of the full mark range may be limited according to the quality of the candidate
responses seen).
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should
not be awarded with grade thresholds or grade descriptors in mind.
a DO credit answers which are worded differently from the mark scheme if they clearly
convey the same meaning (unless the mark scheme requires a specific term)
b DO credit alternative answers/examples which are not written in the mark scheme if they
are correct
c DO credit answers where candidates give more than one correct answer in one
prompt/numbered/scaffolded space where extended writing is required rather than list-type
answers. For example, questions that require n reasons (e.g. State two reasons …).
d DO NOT credit answers simply for using a ‘key term’ unless that is all that is required.
(Check for evidence it is understood and not used wrongly.)
e DO NOT credit answers which are obviously self-contradicting or trying to cover all
possibilities
f DO NOT give further credit for what is effectively repetition of a correct point already
credited unless the language itself is being tested. This applies equally to ‘mirror
statements’ (i.e. polluted/not polluted).
g DO NOT require spellings to be correct, unless this is part of the test. However spellings of
syllabus terms must allow for clear and unambiguous separation from other syllabus terms
with which they may be confused (e.g. Corrasion/Corrosion)
3 Calculation questions:
• The mark scheme will show the steps in the most likely correct method(s), the mark for
each step, the correct answer(s) and the mark for each answer
• If working/explanation is considered essential for full credit, this will be indicated in the
question paper and in the mark scheme. In all other instances, the correct answer to a
calculation should be given full credit, even if no supporting working is shown.
• Where the candidate uses a valid method which is not covered by the mark scheme,
award equivalent marks for reaching equivalent stages.
• Where an answer makes use of a candidate’s own incorrect figure from previous working,
the ‘own figure rule’ applies: full marks will be given if a correct and complete method is
used. Further guidance will be included in the mark scheme where necessary and any
exceptions to this general principle will be noted.
4 Annotation:
• For point marking, ticks can be used to indicate correct answers and crosses can be used
to indicate wrong answers. There is no direct relationship between ticks and marks. Ticks
have no defined meaning for levels of response marking.
• For levels of response marking, the level awarded should be annotated on the script.
• Other annotations will be used by examiners as agreed during standardisation, and the
meaning will be understood by all examiners who marked that paper.
BOD Benefit of doubt Used when the benefit of the doubt is given in order to
reward a response.
TV Too vague Used when parts of the answer are considered to be too
vague.
NAQ Not answered Used when the answer or parts of the answer are not
question answering the question asked.
OFR Own figure rule If a mistake is made in a calculation, and the incorrect
figure that results from the mistake is used for subsequent
calculations.
SEEN Noted but no credit Indicates that content has been recognised but not
given rewarded.
1(a) Explain two reasons why the owners of CC might want to expand the 8
business.
For example: To possibly gain higher profits for the owners (1) because
expansion is likely to increase revenue, (1) as CC will sell its products in
more markets (1). The higher profits should allow the shareholders of CC to
be paid higher dividends (app).
1(b) Consider the opportunities and threats of globalisation for CC. Which 12
is likely to have the greatest effect on CC? Justify your answer.
0 No creditable response. 0
For example: Protects the product from getting damaged (1) or the
chocolate bar could be broken into several pieces leading to customer
dissatisfaction (app).
Application could include: chocolate bars; CC plan to take over NM; public
limited company; imports most of its raw materials; cocoa beans; no trade
restrictions in its export markets; aimed at young children; allergies; adult
customers; perishable food; expiry date; ingredients; calories.
2(b) Using Appendix 1 and other information, consider the advantages and 12
disadvantages of the two CC brands. Which brand should CC stop
producing? Justify your answer.
0 No creditable response. 0
Advantages Disadvantages
2(b)
Advantages Disadvantages
For example: There may be poor morale amongst the employees (1)
because a larger business may make employees feel unimportant as there
are so many employees in the organisation (1). Many of the 4500
employees may lack commitment after the takeover (app) leading to lower
efficiency and higher unit costs (1).
0 No creditable response. 0
Benefits Drawbacks
3(b)
Benefits Drawbacks
3(b)
• Samuel should become the Operations Manager
at NM because he is experienced in the way CC
wants the factory to be run and the working
practices it uses. He is very experienced and
has worked for CC for 20 years. Ritesh is not
familiar with the working practices at CC, and
this might lead to errors and therefore lower
efficiency.
Recommendation
• Ritesh should be kept as Operations Manager
because he has far more knowledge and
experience of NM and its brands. He
understands the market for chocolates in
country Z and also has established links with
suppliers of ingredients. This would be missing if
Samuel tried to run the operations department in
NM, resulting in lower efficiency.
For example: A trade union will give advice to employees (1) such as if they
feel they have been unfairly treated then the trade union can represent them
in meetings with employers (1).
4(b) Using Appendix 3 and other information, consider how the financial 12
statements might be useful to the following three stakeholder groups.
Which stakeholder group will find the financial information most
useful? Justify your answer.
• NM’s shareholders
• CC’s managers
• CC’s bank manager
Level Description Marks
Sound application of knowledge and understanding
of relevant business concepts using appropriate
terminology.
4(b)
• NM’s shareholders will find the information most
useful because they need to assess how they
might benefit from the takeover. CC’s managers
will use other information about the efficiency of
NM or its sales figures before making decisions
about NM. The bank manager is only interested in
the ability of the business to repay a loan.
Conclusion • CC’s managers will find the information most useful
because they will be able to assess if CC is more
efficient than NM and if so, they will need to make
NM more efficient after the takeover.
• CC’s bank manager will find the information most
useful because they need to assess whether to
offer a loan for the takeover and judge if the loan
is likely to be repaid.