2026 Syllabus
2026 Syllabus
2026 Syllabus
Cambridge O Level
Business Studies 7115
Use this syllabus for exams in 2026.
Exams are available in the June and November series.
Version 1
For the purposes of screen readers, any mention in this document of Cambridge IGCSE
refers to Cambridge International General Certificate of Secondary Education.
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Key benefits
Cambridge O Level is typically for 14 to 16 year olds and is an internationally recognised qualification. It has
been designed especially for an international market and is sensitive to the needs of different countries.
Cambridge O Level is designed for learners whose first language may not be English, and this is acknowledged
throughout the examination process.
Our programmes promote a thorough knowledge and understanding of a subject and help to develop the skills
learners need for their next steps in education or employment.
Cambridge O Level Business Studies is accepted by universities and employers as proof of an understanding
of business concepts and techniques across a range of different types of businesses. Learners will be able to:
• understand different forms of business organisations, the environments in which businesses operate and
business functions such as marketing, operations and finance
• appreciate the role of people in business success.
Our programmes balance a thorough knowledge and understanding of a subject and help to develop the skills
learners need for their next steps in education or employment.
Cambridge
learner
School feedback: ‘Cambridge O Level has helped me develop thinking and analytical skills
which will go a long way in helping me with advanced studies.’
Feedback from: Kamal Khan Virk, former student at Beaconhouse Garden Town Secondary School, Pakistan, who
went on to study Actuarial Science at the London School of Economics
Cambridge O Levels are accepted and valued by leading universities and employers around the world as
evidence of academic achievement. Cambridge students can be confident that their qualifications will be
understood and valued throughout their education and career, in their home country and internationally. Many
universities require a combination of Cambridge International AS & A Levels and Cambridge O Levels or
equivalent to meet their entry requirements.
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2 Syllabus overview
Aims
The aims describe the purposes of a course based on this syllabus.
Content overview
1 Understanding business activity
This section introduces the underlying ideas and concepts of business and includes the purpose and
nature of business activity and how businesses can be classified. Enterprise and entrepreneurs, and why
some businesses grow while others remain small are further important issues. How business size can
be measured, types of business organisation, business objectives and stakeholder objectives are the
concluding topics.
2 People in business
The focus is the functional area of human resources and includes the importance and methods of
motivating a workforce. How businesses are organised and managed and the methods of recruitment,
selection and training of employees are also considered. Finally, the section covers the importance and
methods of effective internal and external communication.
3 Marketing
This section includes the role of marketing, the distinctions between niche and mass markets and the
techniques of market segmentation. The methods and importance of market research are covered. The
central role of the marketing mix, i.e. the four Ps, is made clear. Marketing strategies to influence consumer
decisions at home and in new foreign markets are the final topics in this section.
4 Operations management
The focus is the functional area of production and includes the meaning and methods of production and
how productivity can be increased. The different costs of production and break-even analysis are covered.
The section concludes with the importance and methods of achieving quality in the production process
and location decisions of businesses.
This O Level syllabus shares content with other Business Studies syllabuses. For further support
see the School Support Hub for IGCSE Business Studies. Textbooks endorsed to support IGCSE Business
Studies are suitable for use with this syllabus.
Assessment overview
All candidates take two components. Candidates will be eligible for grades A* to E.
Assessment objectives
The assessment objectives (AOs) are:
AO2 Application
• apply knowledge and understanding of facts, terms, concepts, conventions, theories and techniques.
AO3 Analysis
• distinguish between evidence and opinion in a business context
• order, analyse and interpret information in narrative, numerical and graphical forms, using appropriate
techniques.
AO4 Evaluation
• present reasoned explanations, develop arguments, understand implications and draw inferences
• make judgements, recommendations and decisions.
AO2 Application 20
AO3 Analysis 25
AO4 Evaluation 15
Total 100
Paper 1 Paper 2
AO2 Application 20 20
AO3 Analysis 20 30
AO4 Evaluation 10 20
3 Subject content
This syllabus gives you the flexibility to design a course that will interest, challenge and engage your learners.
Where appropriate you are responsible for selecting topics, subject contexts, resources and examples to
support your learners’ study. These should be appropriate for the learners’ age, cultural background and
learning context as well as complying with your school policies and local legal requirements.
In all of the following, candidates are required to apply their understanding to a variety of simple business
situations. Candidates should be able to make simple decisions based upon the analysis and evaluation of
information provided.
1.1.1 The purpose and nature of business activity: • Concepts of needs, wants, scarcity and
opportunity cost
• Importance of specialisation
• Purpose of business activity
• The concept of adding value and how added
value can be increased
1.2.1 Economic sectors in terms of primary, • Basis of business classification, using examples
secondary and tertiary sectors: to illustrate the classification
• Reasons for the changing importance of
business classification, e.g. in developed and
developing economies
1.3.2 The methods and problems of measuring • Methods of measuring business size, e.g.
business size: number of people employed, value of output,
capital employed (profit is not a method of
measuring business size)
• Limitations of methods of measuring business
size
1.3.3 Why some businesses grow and others • Why the owners of a business may want to
remain small: expand the business
• Different ways in which businesses can grow,
e.g. internal/external
• Problems linked to business growth and how
these might be overcome
• Why some businesses remain small
1.3.4 Why some (new or established) businesses • Causes of business failure, e.g. lack of
fail: management skills, changes in the business
environment, liquidity problems
• Why new businesses are at a greater risk of
failing
1.4.1 The main features of different forms of • Sole traders, partnerships, private and public
business organisation: limited companies, franchises and joint
ventures
• Differences between unincorporated
businesses and limited companies
• Concepts of risk, ownership and limited liability
• Recommend and justify a suitable form of
business organisation to owners/management
in a given situation
• Business organisations in the public sector,
e.g. public corporations
1.5.1 Businesses can have several objectives and • Need for business objectives and the
the importance of them can change: importance of them
• Different business objectives, e.g. survival,
growth, profit and market share
• Objectives of social enterprises
1.5.2 The role of stakeholder groups involved in • Main internal and external stakeholder groups
business activity: • Objectives of different stakeholder groups
• How these objectives might conflict with each
other, use examples
2 People in business
2.1 Motivating employees
2.1.1 The importance of a well-motivated • Why people work and what motivation means
workforce: • The benefits of a well-motivated workforce:
labour productivity, reduced absenteeism and
labour turnover
• The concept of human needs, e.g. Maslow’s
hierarchy
• Key motivational theories: Taylor and Herzberg
2.2.1 Draw, interpret and understand simple • Simple hierarchical structures: levels of
organisational charts: hierarchy, span of control, chain of command
e.g. tall/short
• Roles and responsibilities of directors,
managers, supervisors, other employees in an
organisation and inter-relationships between
them
2.3.2 The importance of training and the methods • Importance of training to a business and to
of training: employees
• Benefits and limitations of induction training,
on-the-job training and off-the-job training
2.3.3 Why reducing the size of the workforce might • Difference between dismissal and redundancy
be necessary: with examples
• Understand situations in which downsizing the
workforce might be necessary, e.g. automation
or reduced demand for products
• Recommend and justify which employees to
make redundant in given circumstances
2.3.4 Legal controls over employment issues and • Legal controls over employment contracts,
their impact on employers and employees: unfair dismissal, discrimination, health and
safety, legal minimum wage
2.4.1 Why effective communication is important • Effective communication and its importance to
and the methods used to achieve it: business
• Benefits and limitations of different
communication methods including those based
on information technology (IT)
• Recommend and justify which communication
method to use in given circumstances
3 Marketing
3.1 Marketing, competition and the customer
3.1.3 Concepts of niche marketing and mass • Benefits and limitations of both approaches to
marketing: marketing
3.1.4 How and why market segmentation is • How markets can be segmented, e.g. according
undertaken: to age, socio-economic grouping, location,
gender
• Potential benefits of segmentation to business
• Recommend and justify an appropriate method
of segmentation in given circumstances
3.2.1 The role of market research and methods • Market-orientated businesses (uses of market
used: research information to a business)
• Primary research and secondary research
(benefits and limitations of each)
• Methods of primary research, e.g. postal
questionnaire, online survey, interviews, focus
groups
• The need for sampling
• Methods of secondary research, e.g. online,
accessing government sources, paying for
commercial market research reports
• Factors influencing the accuracy of market
research data
3.2.2 Presentation and use of market research • Analyse market research data shown in the
results: form of graphs, charts and diagrams; draw
simple conclusions from such data
3.3.5 Technology and the marketing mix: • Define and explain the concept of e-commerce
• The opportunities and threats of e-commerce
to business and consumers
• Use of the internet and social media networks
for promotion
3.4.2 The nature and impact of legal controls • Impact of legal controls on marketing
related to marketing: strategy, e.g. misleading promotion, faulty and
dangerous goods
3.4.3 The opportunities and problems of entering • Growth potential of new markets in other
new foreign markets: countries
• Problems of entering foreign markets,
e.g. cultural differences and lack of knowledge
• Benefits and limitations of methods to
overcome such problems, e.g. joint ventures,
licensing
4 Operations management
4.1 Production of goods and services
4.1.2 The main methods of production: • Features, benefits and limitations of job, batch
and flow production
• Recommend and justify an appropriate
production method for a given situation
4.2.1 Identify and classify costs: • Classifying costs using examples, e.g. fixed,
variable, average, total
• Use cost data to help make simple cost-based
decisions, e.g. to stop production or continue
4.2.2 Economies and diseconomies of scale: • The concept of economies of scale with
examples, e.g. purchasing, marketing, financial,
managerial, technical
• The concept of diseconomies of scale with
examples, e.g. poor communication, lack
of commitment from employees, weak
coordination
4.3.1 Why quality is important and how quality • What quality means and why it is important for
production might be achieved: all businesses
• The concept of quality control and how
businesses implement quality control
• The concept of quality assurance and how this
can be implemented
4.4.1 The main factors influencing the location and • Factors relevant to the location decision
relocation decisions of a business: of manufacturing businesses and service
businesses
• Factors that a business could consider when
deciding which country to locate operations in
• The role of legal controls on location decisions
• Recommend and justify an appropriate location
for a business in given circumstances
5.1.1 The need for business finance: • The main reasons why businesses need
finance, e.g. start-up capital, capital for
expansion and additional working capital
• Understand the difference between short-term
and long-term finance needs
5.1.2 The main sources of finance: • Internal sources and external sources with
examples
• Short-term and long-term sources with
examples, e.g. overdraft for short-term finance
and debt or equity for long-term finance
• Importance of alternative sources of capital,
e.g. micro-finance, crowd-funding
• The main factors considered in making the
financial choice, e.g. size and legal form of
business, amount required, length of time,
existing loans
• Recommend and justify appropriate source(s)
of finance in given circumstances
5.2.1 The importance of cash and of cash-flow • Why cash is important to a business
forecasting: • What a cash-flow forecast is, how a simple one
is constructed and the importance of it
• Amend or complete a simple cash-flow forecast
• How to interpret a simple cash-flow forecast
• How a short-term cash-flow problem might
be overcome, e.g. overdraft, delaying supplier
payments, asking debtors to pay more quickly
5.4.1 The main elements of a statement of financial • The main classifications of assets and liabilities,
position: using examples
5.5.4 Why and how accounts are used: • Needs of different users of accounts and ratio
analysis
• How users of accounts and ratio results might
use information to help make decisions, e.g.
whether to lend to or invest in the business
6.1.1 Business cycle: • Main stages of the business cycle, e.g. growth,
boom, recession, slump
• Impact on businesses of changes in
employment levels, inflation and Gross
Domestic Product (GDP)
6.1.2 How government control over the economy • Identify government economic objectives,
affects business activity and how businesses e.g. increasing Gross Domestic Product (GDP)
may respond: • Impact of changes in taxes and government
spending
• Impact of changes in interest rates
• How businesses might respond to these
changes
6.2.1 Environmental concerns and ethical issues • How business activity can impact on the
as both opportunities and constraints for environment, e.g. global warming
businesses: • The concept of externalities: possible external
costs and external benefits of business
decisions
• Sustainable development; how business activity
can contribute to this
• How and why business might respond to
environmental pressures and opportunities,
e.g. pressure groups
• The role of legal controls over business activity
affecting the environment, e.g. pollution controls
• Ethical issues a business might face: conflicts
between profits and ethics
• How business might react and respond to
ethical issues, e.g. child labour, paying fair
prices to suppliers
6.3.1 The importance of globalisation: • The concept of globalisation and the reasons
for it
• Opportunities and threats of globalisation for
businesses
• Why governments might introduce import tariffs
and import quotas
6.3.2 Reasons for the importance and growth of • Benefits to a business of becoming a
multinational companies (MNCs): multinational and the impact on its stakeholders
• Potential benefits to a country and/or economy
where a MNC is located, e.g. jobs, exports,
increased choice, investment
• Potential drawbacks to a country and/or
economy where a MNC is located, e.g. reduced
sales of local businesses, repatriation of profits
6.3.3 The impact of exchange rate changes: • Depreciation and appreciation of an exchange
rate
• How exchange rate changes can affect
businesses as importers and exporters of
products,
e.g. prices, competitiveness, profitability
(exchange rate calculations will not be
assessed)
The question paper comprises four questions requiring a mixture of short answers and structured data
responses.
Each question is introduced by stimulus material. For some questions candidates will need to refer to the
stimulus material in their answers. The stimulus material may include tables, graphs and images.
Candidates should be aware of the marks for each part question. These are printed on the question paper.
Candidates should use them as a guide to the amount of detail and length of response expected and to help
them manage their time effectively.
The question paper comprises four questions based on a case study, provided as an insert with the paper. The
case study includes appendices with data presented in a variety of forms, such as tables, graphs, newspaper
extracts and advertisements.
Candidates should be aware of the marks for each part question. These are printed on the question paper.
Candidates should use them as a guide to the amount of detail and length of response expected and to help
them manage their time effectively.
Command words
Command words and their meanings help candidates know what is expected from them in the exams. The
table below includes command words used in the assessment for this syllabus. The use of the command word
will relate to the subject context.
Explain set out purposes or reasons / make the relationships between things clear / say why
and/or how and support with relevant evidence
Identify name/select/recognise
This section is an overview of other information you need to know about this syllabus. It will help to share the
administrative information with your exams officer so they know when you will need their support. Find more
information about our administrative processes at www.cambridgeinternational.org/eoguide
We do not expect learners starting this course to have previously studied Business Studies.
You can enter candidates in the June and November exam series. You can view the timetable for your
administrative zone at www.cambridgeinternational.org/timetables
Check you are using the syllabus for the year the candidate is taking the exam.
Private candidates can enter for this syllabus. For more information, please refer to the Cambridge Guide to
Making Entries.
Cambridge IGCSE, Cambridge IGCSE (9–1) and Cambridge O Level syllabuses are at the same level.
Making entries
Exams officers are responsible for submitting entries to Cambridge International. We encourage them to work
closely with you to make sure they enter the right number of candidates for the right combination of syllabus
components. Entry option codes and instructions for submitting entries are in the Cambridge Guide to Making
Entries. Your exams officer has access to this guide.
Exam administration
To keep our exams secure, we produce question papers for different areas of the world, known as
administrative zones. We allocate all Cambridge schools to an administrative zone determined by their location.
Each zone has a specific timetable.
Some of our syllabuses offer candidates different assessment options. An entry option code is used to identify
the components the candidate will take relevant to the administrative zone and the available assessment
options.
Retakes
Candidates can retake the whole qualification as many times as they want to. Information on retake entries is at
www.cambridgeinternational.org/retakes
Language
This syllabus and the related assessment materials are available in English only.
Access arrangements
Access arrangements (including modified papers) are the principal way in which Cambridge International
complies with our duty, as guided by the UK Equality Act (2010), to make ‘reasonable adjustments’ for
candidates with special educational needs (SEN), disability, illness or injury. Where a candidate would otherwise
be at a substantial disadvantage in comparison to a candidate with no SEN, disability, illness or injury, we
may be able to agree pre-examination access arrangements. These arrangements help a candidate by
minimising accessibility barriers and maximising their opportunity to demonstrate their knowledge, skills and
understanding in an assessment.
Important:
Requested access arrangements should be based on evidence of the candidate’s barrier to assessment
and should also reflect their normal way of working at school. This is explained in the Cambridge Handbook
www.cambridgeinternational.org/eoguide
• For Cambridge International to approve an access arrangement, we will need to agree that it constitutes
a reasonable adjustment, involves reasonable cost and timeframe and does not affect the security and
integrity of the assessment.
• Availability of access arrangements should be checked by centres at the start of the course. Details of our
standard access arrangements and modified question papers are available in the Cambridge Handbook
www.cambridgeinternational.org/eoguide
• Please contact us at the start of the course to find out if we are able to approve an arrangement that is not
included in the list of standard access arrangements.
• Candidates who cannot access parts of the assessment may be able to receive an award based on the
parts they have completed.
A* is the highest and E is the lowest. ‘Ungraded’ means that the candidate’s performance did not meet the
standard required for grade E. ‘Ungraded’ is reported on the statement of results but not on the certificate.
In specific circumstances your candidates may see one of the following letters on their statement of results:
• Q (PENDING)
• X (NO RESULT).
These letters do not appear on the certificate.
On the statement of results and certificates, Cambridge O Level is shown as GENERAL CERTIFICATE OF
EDUCATION (GCE O LEVEL).
You must read the whole syllabus before planning your teaching programme. We review our
syllabuses regularly to make sure they continue to meet the needs of our schools. In updating this syllabus, we
have made it easier for teachers and students to understand, keeping the familiar features that teachers and
schools value.
Any textbooks endorsed to support the syllabus for examination from 2020 are still suitable for
use with this syllabus.
Cambridge Assessment International Education, The Triangle Building, Shaftesbury Road, Cambridge, CB2 8EA, United Kingdom
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