EDEXCEL- IGCSE Business Studies EXAM
2024/2025 UPDATED WITH CORRECT
ANSWERS
Quality assurance - CORRECT ANSWER A method of working for businesses that
takes into account customers' wants when standardising quality. It often involves
guaranteeing that quality standards are met.
Quality control - CORRECT ANSWER Making sure that the quality of a product meets
specified quality standards.
Quota - CORRECT ANSWER A physical limit on the quantity of imports allowed into a
country.
Ratio analysis - CORRECT ANSWER A numerical approach to investigating accounts
by comparing two related figures.
Regional policy - CORRECT ANSWER Measures used by the government to attract
businesses to ?depressed? areas.
Repatriation (of profit) - CORRECT ANSWER Where a multinational returns the profits
from an overseas venture to the country where it is based.
Retailer - CORRECT ANSWER A business which buys goods from manufacturers and
wholesalers and sells them in small quantities to consumers.
Retained profit - CORRECT ANSWER The profit held by a business rather than
returning it to the owners.
Return on capital employed (ROCE) - CORRECT ANSWER The profit of a business as
a percentage of the total amount of money used to generate it.
Salary - CORRECT ANSWER Pay, usually to non-manual workers, expressed as a
yearly figure but paid monthly.
Sample - CORRECT ANSWER A small group of people which must represent a
proportion of a total market when carrying out market research.
Scale - CORRECT ANSWER The size of a business.
,Scarce resources - CORRECT ANSWER The amount of resources available is limited.
Secondary - CORRECT ANSWER Non-physical products like banking, car washing and
waste disposal.
Secondary industry - CORRECT ANSWER Production involving the conversion of raw
materials into finished and semi-finished goods.
Secondary or desk research - CORRECT ANSWER The collection of data that is
already in existence.
Share capital - CORRECT ANSWER Money raised from the sale of shares in a limited
company.
Short-term finance - CORRECT ANSWER Money borrowed for one year or less.
Skimming or creaming - CORRECT ANSWER Setting a high price initially and then
lowering it later.
Social audit - CORRECT ANSWER The collection of information and reporting on the
impact that a business has on society and the environment.
Social needs - CORRECT ANSWER The need of humans to communicate, develop
friendships and belong.
Socio-economic groups - CORRECT ANSWER Division of people according to social
class based on employment status.
Sole trader or sole proprietor - CORRECT ANSWER A business owned by a single
person.
Span of control - CORRECT ANSWER The number of people a person is directly
responsible for in a business.
Specialization - CORRECT ANSWER In business, the production of a limited range of
goods.
Sponsorship - CORRECT ANSWER Making a financial contribution to an event in
return for publicity.
Stakeholder - CORRECT ANSWER An individual or group with an interest in the
operation of a business.
Stock market - CORRECT ANSWER A market for shares in public limited companies.
, Subordinates - CORRECT ANSWER People in the hierarchy who work under the
control of a senior worker.
Subsidy - CORRECT ANSWER Financial support given to a domestic producer to help
compete with overseas firms.
Sustainable development - CORRECT ANSWER Economic development that allows
people to satisfy their needs and enjoy improved living standards without compromising
the quality of life of future generations.
Tariffs - CORRECT ANSWER A tax on imports to make them more expensive.
Tertiary industry - CORRECT ANSWER The production of services in the economy.
Time rate - CORRECT ANSWER A payment system based on the amount of time
employees spend at work.
Total costs - CORRECT ANSWER Fixed cost and variable cost added together.
Total quality management (TQM) - CORRECT ANSWER A managerial approach which
focuses on quality and aims to improve the effectiveness, flexibility, and
competitiveness of the business.
Total revenue - CORRECT ANSWER The money generated from the sale of output. It
is price multiplied by quantity.
Trade barriers - CORRECT ANSWER Measures designed to restrict trade.
Trading account - CORRECT ANSWER Shows how gross profit is calculated by
subtracting cost of sales from turnover.
Unemployment - CORRECT ANSWER When people are out of work and cannot find a
job.
Unfair dismissal - CORRECT ANSWER When a worker is dismissed illegally by a
business.
Unincorporated business - CORRECT ANSWER Those businesses where there is no
legal difference between the owner and the business.
Unlimited liability - CORRECT ANSWER Where the owner of a business is personally
liable for all business debts.
Variable costs - CORRECT ANSWER Costs which rise as output levels are increased.
2024/2025 UPDATED WITH CORRECT
ANSWERS
Quality assurance - CORRECT ANSWER A method of working for businesses that
takes into account customers' wants when standardising quality. It often involves
guaranteeing that quality standards are met.
Quality control - CORRECT ANSWER Making sure that the quality of a product meets
specified quality standards.
Quota - CORRECT ANSWER A physical limit on the quantity of imports allowed into a
country.
Ratio analysis - CORRECT ANSWER A numerical approach to investigating accounts
by comparing two related figures.
Regional policy - CORRECT ANSWER Measures used by the government to attract
businesses to ?depressed? areas.
Repatriation (of profit) - CORRECT ANSWER Where a multinational returns the profits
from an overseas venture to the country where it is based.
Retailer - CORRECT ANSWER A business which buys goods from manufacturers and
wholesalers and sells them in small quantities to consumers.
Retained profit - CORRECT ANSWER The profit held by a business rather than
returning it to the owners.
Return on capital employed (ROCE) - CORRECT ANSWER The profit of a business as
a percentage of the total amount of money used to generate it.
Salary - CORRECT ANSWER Pay, usually to non-manual workers, expressed as a
yearly figure but paid monthly.
Sample - CORRECT ANSWER A small group of people which must represent a
proportion of a total market when carrying out market research.
Scale - CORRECT ANSWER The size of a business.
,Scarce resources - CORRECT ANSWER The amount of resources available is limited.
Secondary - CORRECT ANSWER Non-physical products like banking, car washing and
waste disposal.
Secondary industry - CORRECT ANSWER Production involving the conversion of raw
materials into finished and semi-finished goods.
Secondary or desk research - CORRECT ANSWER The collection of data that is
already in existence.
Share capital - CORRECT ANSWER Money raised from the sale of shares in a limited
company.
Short-term finance - CORRECT ANSWER Money borrowed for one year or less.
Skimming or creaming - CORRECT ANSWER Setting a high price initially and then
lowering it later.
Social audit - CORRECT ANSWER The collection of information and reporting on the
impact that a business has on society and the environment.
Social needs - CORRECT ANSWER The need of humans to communicate, develop
friendships and belong.
Socio-economic groups - CORRECT ANSWER Division of people according to social
class based on employment status.
Sole trader or sole proprietor - CORRECT ANSWER A business owned by a single
person.
Span of control - CORRECT ANSWER The number of people a person is directly
responsible for in a business.
Specialization - CORRECT ANSWER In business, the production of a limited range of
goods.
Sponsorship - CORRECT ANSWER Making a financial contribution to an event in
return for publicity.
Stakeholder - CORRECT ANSWER An individual or group with an interest in the
operation of a business.
Stock market - CORRECT ANSWER A market for shares in public limited companies.
, Subordinates - CORRECT ANSWER People in the hierarchy who work under the
control of a senior worker.
Subsidy - CORRECT ANSWER Financial support given to a domestic producer to help
compete with overseas firms.
Sustainable development - CORRECT ANSWER Economic development that allows
people to satisfy their needs and enjoy improved living standards without compromising
the quality of life of future generations.
Tariffs - CORRECT ANSWER A tax on imports to make them more expensive.
Tertiary industry - CORRECT ANSWER The production of services in the economy.
Time rate - CORRECT ANSWER A payment system based on the amount of time
employees spend at work.
Total costs - CORRECT ANSWER Fixed cost and variable cost added together.
Total quality management (TQM) - CORRECT ANSWER A managerial approach which
focuses on quality and aims to improve the effectiveness, flexibility, and
competitiveness of the business.
Total revenue - CORRECT ANSWER The money generated from the sale of output. It
is price multiplied by quantity.
Trade barriers - CORRECT ANSWER Measures designed to restrict trade.
Trading account - CORRECT ANSWER Shows how gross profit is calculated by
subtracting cost of sales from turnover.
Unemployment - CORRECT ANSWER When people are out of work and cannot find a
job.
Unfair dismissal - CORRECT ANSWER When a worker is dismissed illegally by a
business.
Unincorporated business - CORRECT ANSWER Those businesses where there is no
legal difference between the owner and the business.
Unlimited liability - CORRECT ANSWER Where the owner of a business is personally
liable for all business debts.
Variable costs - CORRECT ANSWER Costs which rise as output levels are increased.
