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Cambridge O Level

Business Studies 7115

Business activity, people, marketing, operations, finance and the external environment through short answers and case studies.

Syllabus version: 2026 syllabusChecked against the Cambridge syllabusThe 2027 syllabus has not been published yet; showing the latest version (2026 syllabus).
Subject review complete (21 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: 30 approved as written, 10 corrected.
Paper 1 Short Answer and Data Response: 50%Paper 2 Case Study: 50%Weighting2 papers
  • 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), with short answers and structured data responses drawn from the whole syllabus.

What the paper looks like

Four compulsory 20-mark questions, each based on a short scenario about a different business, sometimes with a table, graph or chart. Each question follows a fixed pattern: (a) Define a term [2]; (b) Identify two points or Calculate from the data [2]; (c) Identify four / Outline two points, applied to the business [4]; (d) Explain two points, e.g. one advantage and one disadvantage, each with knowledge, application and analysis [6]; (e) a generic 'Do you think…? Justify your answer' or 'Explain two… Which is most important?' with knowledge, analysis and a justified judgement [6] (no application marks in (e)). Calculator allowed; show working.

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 insert whose appendices contain tables, graphs, extracts and advertisements.

What the paper looks like

Four compulsory 20-mark questions on one unseen case study supplied as an insert. The case describes one business with appendices (organisation charts, financial tables, survey results, adverts, newspaper extracts). Each question has (a) Explain two/four points [8], applied to the case except one generic (a), and (b) Consider two or three options and decide which the business should choose, justifying the answer [12], marked in levels: Level 1 simple points, Level 2 developed explanation in context, Level 3 a justified recommendation that explains why the alternatives were rejected. Data must be analysed (e.g. break-even, margins, ratios), not just copied. Calculator allowed.

Case studyStructuredExtended responseCase study insert (with appendices) provided; calculator permitted
Checked against the Cambridge syllabus

Assessment overview

From the 2026 syllabus. Checked against the Cambridge syllabus

All candidates
Paper 1Paper 2
Both papers are compulsory (1 hour 30 minutes, 80 marks, 50% each); grades A* to E available.
Assessment objectiveO Level weighting
AO1 Knowledge and understanding40%
AO2 Application20%
AO3 Analysis25%
AO4 Evaluation15%
Changes in this syllabus version
  • No significant changes to syllabus content compared with the 2023–2025 syllabus; the six content areas are unchanged.
  • The assessment structure is the same as for 2023–2025: Paper 1 Short Answer and Data Response and Paper 2 Case Study, each 1 hour 30 minutes, 80 marks and 50%.
  • AO weightings are also unchanged (Paper 1: AO1 50%, AO2 20%, AO3 20%, AO4 10%; Paper 2: AO1 30%, AO2 20%, AO3 30%, AO4 20%).
  • Version 2 (December 2025) only updated a weblink; specimen materials were not changed.
  • 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; show your working.
Consider
Look at the information given, weigh it up and respond to it.
Define
Give the exact meaning of a term.
Explain
Give reasons or purposes, show how things are connected and say why or how, backed by relevant evidence.
Identify
Name, pick out or recognise.
Justify
Back up a case or decision with evidence or argument.
Outline
Give the main points briefly.
State
Put clearly in a few words.
Examiner guidance from recent reports (14)
Understanding business activity. Learn definitions precisely: a definition of a social enterprise must mention social or environmental objectives alongside making a profit, not just being ethical or buying locally. Do not build a definition from words in the question stem.
Understanding business activity. In 'internal or external growth' questions, stay on growth: compare speed, cost, risk and control of growing from within versus merging or taking over. Points about new staff bringing ideas are about recruitment and earn nothing.
People in business. Span of control is the number of subordinates directly responsible to one manager. Do not confuse it with chain of command or the number of levels of hierarchy.
People in business. When explaining training, part-time staff or leadership styles, write from the point of view of the business (costs, output, labour turnover, quality) unless the question asks about employees.
People in business. Legal controls over employment include minimum wage, unfair dismissal, discrimination, health and safety and employment contracts. Fair pay or good treatment are ethical ideas, not legal controls.
Marketing. Skimming is a high launch price. Its benefit is a higher revenue (and margin) per unit, not necessarily higher total revenue; say why customers will pay it, e.g. a new or unique product.
Marketing. Do not write that a price rise or cost cut will 'increase profit': profit also depends on how many units are sold. Say that the profit margin per unit rises, then consider the effect on sales.
Operations management. Economies of scale lower average (unit) costs, not total costs; diseconomies of scale raise average costs as a business grows too large. Always use the word 'average' or 'unit'.
Operations management. Break-even output is a number of units, never a value in dollars. Margin of safety is current output minus break-even output, also in units.
Financial information and decisions. Check the units in the data: if a table is in $000 or $ million, give your answer in the same units or convert it, and show your working so method marks can be awarded.
Financial information and decisions. Profit and cash are different: a profitable business can still run out of cash if customers pay late or inventory is high. Short-term finance pays day-to-day costs; long-term finance pays for non-current assets or expansion.
Financial information and decisions. Ratios mean little alone: compare with another year or another business, give the ratio with % or as x : 1, and say what the change suggests about profitability or liquidity.
External influences on business activity. Ethical issues (fair prices to suppliers, child labour, honest promotion) are not the same as environmental issues; read which one the question asks about.
External influences on business activity. An import quota is a limit on the quantity of a product that can be imported; an import tariff is a tax on imports. Many candidates mix these up.

Topic map

Practice types

Free sample questions

Ravi owns a small printing shop and has $5000 to spend. He ranks his choices: (1) a new colour printer, (2) a…
Ravi owns a small printing shop and has $5000 to spend. He ranks his choices: (1) a new colour printer, (2) a delivery motorbike, (3) a local radio advertising campaign. He buys the colour printer. What is the opportunity cost of his decision?
  1. The $5000 spent on the colour printer
  2. The delivery motorbike
  3. The delivery motorbike and the radio advertising campaign
  4. The radio advertising campaign

Answer: B. The delivery motorbike

Opportunity cost is the next best alternative given up when a choice is made. Ravi’s second choice was the delivery motorbike, so that is the opportunity cost. It is not the money spent (that is the cost), and it is not every alternative added together, only the next best one.

Which statement describes a public limited company?
Which statement describes a public limited company?
  1. It is owned and controlled by the government.
  2. Its owners have unlimited liability.
  3. It is owned by between 2 and 20 partners.
  4. Its shares can be bought and sold by the general public, e.g. on a stock exchange.

Answer: D. Its shares can be bought and sold by the general public, e.g. on a stock exchange.

A public limited company (plc) can sell shares to the general public, usually through a stock exchange. A business owned and controlled by the government is a public corporation (public sector), a common confusion. Shareholders of any limited company have limited liability, and ‘partners’ describes a partnership.

FAQs

Are these official 7115 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.