IGCSE BUSINESS STUDIES STUDY EXAM UPDATED
QUESTIONS AND ANSWERS GRADED A+
✔✔Incorporated business - ✔✔A business with seperate legal identity from its owners.
✔✔Unincorporated business - ✔✔A business without seperate legal identity from its
owners.
✔✔Private limited company - ✔✔A business owned by shareholders but it cannot sell
shares to the public.
✔✔Public limited company - ✔✔A business owned by shareholders but it can sell
shares to the public and its shares are tradable on Stock Exchange.
✔✔Shareholders - ✔✔The owners of a limited company.
✔✔Dividends - ✔✔Payments made to shareholders from profits (after tax) of a
company.
✔✔Franchise - ✔✔A business that uses, under license, the brand name, logo and
trading methods of an existing business. The franchisor sells the license; the franchisee
buys the licence.
✔✔Joint venture - ✔✔Two or more businesses start a new project together sharing
capital, risks and profits.
✔✔Public corporation - ✔✔The business, in the public sector that is owned and
controlled by the state/goverment.
✔✔Business Objectives - ✔✔The aims or targets that a business work towards.
✔✔Profit - ✔✔Total income/ revenue of a business less total costs.
✔✔Market share - ✔✔The proportion (%) of total market sales held by one brand or
business = (sales of business / total market sales) * 100
✔✔Social enterprise - ✔✔An organisation with profit, environmental and social
objectives.
✔✔Stakeholder - ✔✔Any person or group with a direct interest in the performance and
activities of a business.
✔✔Motivation - ✔✔Workers want to work hard and effectively for their employer.
, ✔✔Wage - ✔✔Payment for work, usually paid weekly.
✔✔Time rate - ✔✔Wage based on number of hours worked.
✔✔Piece rate - ✔✔Wage based on number of unit of output produced.
✔✔Salary - ✔✔Payment for work, usually paid monthly.
✔✔Commission - ✔✔Payment based of number of units sold.
✔✔Profit Sharing - ✔✔Payment to employees based on a share of the profits of the
business.
✔✔Bonus - ✔✔Additional payment to workers, above the basic wage/ salary, as a
reward for good work.
✔✔Performance-related play - ✔✔Pay is related to the performance of an employee.
✔✔Share ownership scheme - ✔✔Giving employees share in a company to encourage
sense of belonging and ownership.
✔✔Appraisal - ✔✔Assesing the effectiveness of employees (important for performance-
related pay).
✔✔Fringe benefits - ✔✔Non-financial rewards
✔✔Job satisfaction - ✔✔Enjoyment employees can derive from work if they feel they
have done good/rewarding job.
✔✔Job rotation - ✔✔Workers are asked to switch different tasks with other workers (but
at the same level of responsibility).
✔✔Job enlargement - ✔✔Tasks of a similar level of difficulty/responsibility are added to
a worker's jov description.
✔✔Job enrichment - ✔✔Adding tasks that are more challenging, more skillful and more
responsible.
✔✔Organisational Structure - ✔✔The levels of management and divisions of
responsibility in an organisation.
✔✔Chain of command - ✔✔The route taken by instructions passed down from upper to
lower management.
QUESTIONS AND ANSWERS GRADED A+
✔✔Incorporated business - ✔✔A business with seperate legal identity from its owners.
✔✔Unincorporated business - ✔✔A business without seperate legal identity from its
owners.
✔✔Private limited company - ✔✔A business owned by shareholders but it cannot sell
shares to the public.
✔✔Public limited company - ✔✔A business owned by shareholders but it can sell
shares to the public and its shares are tradable on Stock Exchange.
✔✔Shareholders - ✔✔The owners of a limited company.
✔✔Dividends - ✔✔Payments made to shareholders from profits (after tax) of a
company.
✔✔Franchise - ✔✔A business that uses, under license, the brand name, logo and
trading methods of an existing business. The franchisor sells the license; the franchisee
buys the licence.
✔✔Joint venture - ✔✔Two or more businesses start a new project together sharing
capital, risks and profits.
✔✔Public corporation - ✔✔The business, in the public sector that is owned and
controlled by the state/goverment.
✔✔Business Objectives - ✔✔The aims or targets that a business work towards.
✔✔Profit - ✔✔Total income/ revenue of a business less total costs.
✔✔Market share - ✔✔The proportion (%) of total market sales held by one brand or
business = (sales of business / total market sales) * 100
✔✔Social enterprise - ✔✔An organisation with profit, environmental and social
objectives.
✔✔Stakeholder - ✔✔Any person or group with a direct interest in the performance and
activities of a business.
✔✔Motivation - ✔✔Workers want to work hard and effectively for their employer.
, ✔✔Wage - ✔✔Payment for work, usually paid weekly.
✔✔Time rate - ✔✔Wage based on number of hours worked.
✔✔Piece rate - ✔✔Wage based on number of unit of output produced.
✔✔Salary - ✔✔Payment for work, usually paid monthly.
✔✔Commission - ✔✔Payment based of number of units sold.
✔✔Profit Sharing - ✔✔Payment to employees based on a share of the profits of the
business.
✔✔Bonus - ✔✔Additional payment to workers, above the basic wage/ salary, as a
reward for good work.
✔✔Performance-related play - ✔✔Pay is related to the performance of an employee.
✔✔Share ownership scheme - ✔✔Giving employees share in a company to encourage
sense of belonging and ownership.
✔✔Appraisal - ✔✔Assesing the effectiveness of employees (important for performance-
related pay).
✔✔Fringe benefits - ✔✔Non-financial rewards
✔✔Job satisfaction - ✔✔Enjoyment employees can derive from work if they feel they
have done good/rewarding job.
✔✔Job rotation - ✔✔Workers are asked to switch different tasks with other workers (but
at the same level of responsibility).
✔✔Job enlargement - ✔✔Tasks of a similar level of difficulty/responsibility are added to
a worker's jov description.
✔✔Job enrichment - ✔✔Adding tasks that are more challenging, more skillful and more
responsible.
✔✔Organisational Structure - ✔✔The levels of management and divisions of
responsibility in an organisation.
✔✔Chain of command - ✔✔The route taken by instructions passed down from upper to
lower management.
