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Business Studies IGCSEPDF 54

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PDF 54

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18 of 2 Answer 3{a) Define ‘private sector’. Award 2 marks for afull definition. Award 1 mark for a partial definition. e (When business activities are) owned by individuals [2] ¢ (The part of the economy that is) controlled by individuals and companies for profit (2) Partial definition e.g. e Not government/state controlled [1] ¢ Run/controlled by individuals [1] ec n Prows & 2025 Page 17 of 26 0450/12 Cambridge IGCSE — Mark Scheme May/June 2025 PUBLISHED Question Answer Marks Guidance Sib) 2 | Onty award the first two responses given. Identify two reasons why new businesses are at a greater risk of failure. Award 1 mark for each reason (max 2). Points might include: Lack of finance/(start-up) capital Cash flow problems/lack of liquidity Level of competition/market already saturated Lack/low level of customers/demand/sales/lack of customer loyalty Poor planning/no business plan/lack of objectives Lack of (managerial/business) experience/skills Inadequate/no market research/poor marketing No/low reputation/brand awaereness/brand image Other appropriate responses should be credited. 3(c) Identify four stakeholder groups a business might have. Award 1 mark for each stakeholder group (max 4), Points might include: Employees/workers Managers/directors Ovwners/shareholders Suppliers Lenders/banks Government Local community Customers Other appropriate responses should be credited. Only award the first four responses given.