Cambridge IGCSE

Business Studies 0450

How businesses are organised, managed and financed, with case-study questions on marketing, operations and the wider economy.

Exam year

Syllabus version: 2026 syllabusChecked against the Cambridge syllabusThe 2027 syllabus has not been published yet; showing the latest version (2026 syllabus).

Subject review complete (20 Oct 2026). All 40 Business Studies questions were re-solved and checked against the syllabus and Cambridge mark-scheme conventions, and their auto-marking was tested with correct and incorrect answers: 19 approved as written, 21 corrected.

Paper 1 Short Answer and Data Response50%
Paper 2 Case Study50%

Original questions40

Topics covered6/6

Papers2

Mock papers2

What is assessed

2 components. Question formats: short answer, data response, structured, case study, extended response.

Paper 1 Short Answer and Data Response

1 h 30 min80 marksWeighting 50%

Four compulsory 20-mark questions, each introduced by stimulus material (text, tables, graphs or images), mixing short answers and structured data responses across the whole syllabus.

What the paper looks like

Four compulsory questions of 20 marks, each opening with a short business scenario and often a table or chart. A typical question runs (a) Define [2], (b) Identify/Calculate [2], (c) Outline two… applied to the business [4], (d) Explain one advantage and one disadvantage / two ways… to the business [6: knowledge, application, analysis for each], (e) Do you think…? Justify your answer [6: no application marks; 2 knowledge, 2 analysis, 2 evaluation]. Calculations (working capital, ratios, percentages, break-even) usually carry 2 marks with 1 for the method. Calculator allowed; answers are written on the paper.

Short answerData responseStructuredCalculator permitted; no additional materials

Checked against the Cambridge syllabus

Paper 2 Case Study

1 h 30 min80 marksWeighting 50%

Four compulsory 20-mark questions based on an unseen case study provided as an insert, with appendices of tables, graphs, extracts and advertisements.

What the paper looks like

Four compulsory 20-mark questions on one case study supplied in a separate insert, with about three appendices (tables of costs or sales, advertisements, statements of accounts, charts). Each question has an (a) part worth 8 marks (Explain two/four… for the business: 1 knowledge + up to 3 development marks per point, at least one applied) and a (b) part worth 12 marks (Consider two or three options… Which should the business choose? Justify your answer), marked in three levels; top marks need detailed discussion of every option in context, use of the appendix data (e.g. calculating gross profit, break-even output or margin of safety) and a recommendation that explains why the alternative was rejected.

Case studyStructuredExtended responseCase study insert with appendices; calculator permitted

Checked against the Cambridge syllabus

Assessment overview

From the 2026 syllabus. Checked against the Cambridge syllabus

All candidates

Paper 1Paper 2

All candidates take Paper 1 and Paper 2; grades A* to G are available. There are no Core/Extended tiers and no coursework.

Assessment objective	IGCSE weighting
AO1 Knowledge and understanding	40%
AO2 Application	20%
AO3 Analysis	25%
AO4 Evaluation	15%

Changes in this syllabus version

No significant changes to subject content compared with the 2023–2025 syllabus: same two papers, timings, marks and weightings.
Version 2 (December 2025) only updated a weblink; the specimen materials were not changed.
Small wording changes in the command words table (e.g. Explain: “make the relationships between things clear / say why and/or how”).
Textbooks endorsed for examination from 2020 remain suitable.

Command words used in Business Studies papers (8)

Calculate: work out an answer from the facts, figures or information given
Consider: look carefully at the information given and respond to it
Define: state the exact meaning of a term
Explain: give reasons or purposes, show how things are linked, say why and/or how, backed by evidence
Identify: name, pick out or recognise
Justify: back up a case or decision with evidence or argument
Outline: set out the main points briefly
State: say clearly and briefly

Examiner guidance from recent reports (14)

Understanding business activity. Definitions earn 2 marks only when precise: opportunity cost is the next best alternative given up, not simply “the cost of a choice”. Added value is selling price minus the cost of bought-in materials, not profit.

Understanding business activity. In “Do you think…? Justify your answer” questions there are no application marks: make two developed points, then give a clear decision and say why the other side matters less. Many answers stop at two simple points and never decide.

People in business. Span of control is the number of subordinates directly under one manager; do not confuse it with the chain of command or levels of hierarchy. Read the chart carefully and count only direct reports.

People in business. Explain effects on the business, not on the worker: “training lets workers learn new skills” needs developing into fewer mistakes, higher productivity or lower costs for the business named in the stem.

People in business. Laissez-faire and democratic leadership are often mixed up: democratic leaders involve employees in decisions but still decide; laissez-faire leaders leave most decisions to the workers.

Marketing. Price and cost are different terms; using them interchangeably loses marks. When asked about raising sales, keep the focus on the method in the question rather than listing other ways.

Marketing. For application, use a different piece of case information for each point (product, location, number of employees, data). Repeating the same reference twice earns application only once.

Operations management. Break-even output is a number of units, never a dollar figure. State the units and, when recommending, remember a lower break-even output is better, not a higher one.

Operations management. Flow, batch and job production are distinct: flow is continuous, identical products moving along a line. Do not confuse productivity (output per worker) with production (total output) or with quality.

Financial information and decisions. Learn the ratio formulas exactly: current ratio = current assets ÷ current liabilities; acid test = (current assets − inventories) ÷ current liabilities. Watch units in tables shown in thousands or millions.

Financial information and decisions. Gross profit and profit are different lines of the income statement: gross profit = revenue − cost of sales; profit = gross profit − expenses. Label each figure correctly in your working.

Financial information and decisions. When choosing a source of finance, identify factors (amount needed, length of time, cost of interest, loss of control, existing loans) and link each to the case figures rather than just listing sources.

External influences on business activity. Being ethical is not the same as being environmentally friendly. Ethical issues concern doing what is morally right, e.g. fair prices to suppliers or refusing child labour.

External influences on business activity. Do not confuse taxes with interest rates. For an interest rate rise, trace the chain: higher loan repayments and lower consumer borrowing → less demand → lower revenue or profit.

Topic map

Practice types

Free sample questions

FAQs

Are these official 0450 past-paper questions?

No. They are original questions written to match the Business Studies syllabus topics. Official past papers are available to schools through Cambridge.

Why choose an exam year?

Cambridge updates syllabuses periodically. Your exam year selects the matching configuration so topics and components follow the right version.

Is a calculator allowed?

In this configuration a scientific calculator is permitted for the listed papers. Check your syllabus for the exact rule.