Example Candidate Responses (Standards Booklet) 0454 Cambridge IGCSE PDF

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Example Candidate Responses
(Standards Booklet)
Cambridge IGCSE®
Enterprise
0454
Cambridge Secondary 2
Cambridge International Examinations retains the copyright on all its publications. Registered Centres
are permitted to copy material from this booklet for their own internal use. However, we cannot give
permission to Centres to photocopy any material that is acknowledged to a third party even for internal use
within a Centre.
® IGCSE is the registered trademark of Cambridge International Examinations.
© Cambridge International Examinations 2013

Contents
Introduction ........................................................................................................................... 2
Assessment at a glance ........................................................................................................ 3
Paper 1 – Written paper ........................................................................................................ 4
Section A – Case Study ........................................................................................................ 4

Question 1 ..................................................................................................................................................7
Question 2 ................................................................................................................................................ 11
Question 3 ................................................................................................................................................ 15
Question 4 ................................................................................................................................................20
Question 5 ................................................................................................................................................ 24
Section B ............................................................................................................................ 29
Question 6 ...............................................................................................................................................29
Question 7 ................................................................................................................................................40
Introduction
Introduction
The main aim of this booklet is to exemplify standards for those teaching Cambridge IGCSE Enterprise
(0454), and to show how different levels of candidates’ performance relate to the subject’s curriculum and
assessment objectives.
In this booklet a range of candidate responses has been chosen from Paper 1 to exemplify grades A, C and
E. Each response is accompanied by a brief commentary explaining the strengths and weaknesses of the
answers.
In this booklet a grade is given to each question but in the examination each question paper (whole
candidate script) is graded on the overall mark awarded, not on each question or part question. It is
therefore possible that, on some questions, lower grade candidate scripts are awarded the same, similar or
sometimes higher marks than higher grade candidate scripts.
For ease of reference the following format has been adopted:
Question
Mark scheme
Example candidate
response
Examiner comment
For each question an extract of the mark scheme used by examiners is followed by examples of marked
candidate responses, each with an examiner comment on performance. Comments are given to indicate
where and why marks were awarded, and how additional marks could have been obtained. In this way, it
is possible to understand what candidates have done to gain their marks and what they still have to do to
improve their grades.
Past papers, examiner reports and other teacher support materials are available on Teacher Support at
http://teachers.cie.org.uk
2 Cambridge IGCSE Enterprise (0454)

Assessment at a glance
Assessment at a glance
For Cambridge IGCSE Enterprise, candidates take two compulsory components: Paper 1 (written paper) and
Paper 2 (coursework). This booklet includes candidate responses for Paper 1.
Paper 1 (1½ hours, 100 marks)
This paper is based upon a pre-seen case study. Candidates are required to apply their knowledge of
enterprise and entrepreneurship to comment on enterprise issues, and to solve enterprise problems
in the context of the case study, organisations they have studied and their own enterprise.
The paper will consist of two sections:

Section A – short answer questions and structured response questions
Section B – longer, more open-ended questions
Weighting 50% of total marks
Teachers are reminded that a full syllabus and other teacher support materials are available on
www.cie.org.uk
Cambridge IGCSE Enterprise (0454) 3

Paper 1 – Written paper

Section A – Case Study



Question 1
Mark scheme

Example candidate response grade – A
Examiner comment – grade A

(a) The candidate correctly identified two elements that are involved in being enterprising, namely making
decisions and taking risks. Two marks were awarded.
(b) (i) The candidate correctly stated two skills that are needed to be entrepreneurial, namely leadership
and communication skills. The third skill identifying management, was unclear and was considered
to be part of the skill of leadership. Two marks were awarded.
(ii) In the final part of the question, the candidate was required to explain how one entrepreneurial
skill could have helped them to become a more successful entrepreneur. The candidate needed
to show the link between the skill identified and success, using an example from their own
entrepreneurial experience. In this case, the candidate explained how good co-ordination skills
were used in the enterprise to build a successful team and avoid mistakes. The candidate did not
clearly identify the skill under discussion or how success would be measured, therefore the link
between the skill and success was not very clearly made. Three marks were awarded.
Mark awarded = 7 out of 9

Example candidate response – grade C
Examiner comment – grade C

(a) The candidate correctly provided a precise definition of the term enterprise, namely the bringing
together of all of the factors of production to meet needs and wants. Both marks were awarded.
(b) (i) The candidate correctly stated one skill needed to be entrepreneurial, namely determination. The
candidate identified two further skills that were considered to be too vague to be credited, namely
enthusiasm and risk taking. To gain credit the candidate needed to be precise and identify that
taking calculated risks is an entrepreneurial skill. One mark was awarded.
(ii) The candidate did not seem to fully grasp what was required in this question. The answer
illustrated how the skill of determination to succeed was applied in their enterprise by offering
an example. The candidate needed to show how the skill might have helped them to become a
more successful entrepreneur. Two marks were available for application without analysis, and this
candidate was awarded two marks.

Example candidate response – grade E
Examiner comment – grade E

(a) The candidate confused enterprise with starting a business and gained no marks.
(b) (i) The candidate correctly stated one skill, namely motivation. The other two skills identified were
imprecisely phrased with risk taking rather than calculated risk taking being identified. One mark
was awarded.
(ii) The candidate provided an example of how risk taking was an element of their enterprise
experience. This showed some application of theory to the question. There was no attempt to
explain how the skill of calculated risk taking could have improved their success. Only one mark
was awarded.

Question 2
Mark scheme

Example candidate response – grade A


(a) The candidate correctly stated two advantages and two disadvantages of operating as a sole trader and
then went on to clearly explain each point. All eight marks were therefore awarded.
(b) The candidate identified two suitable objectives for a new enterprise, namely breaking even and
becoming well known. In each case the candidate explained why the objective was important for the
enterprise KLG Badges. All four marks were awarded.


(a) The candidate provided one advantage and one disadvantage rather than the two that were required.
The advantage explained that there is an incentive to work harder because the owner keeps all of the
profits. The disadvantage of a lack of expertise was not clearly explained but gave enough detail to
be credited with two marks for this element of the answer. A total mark of four was awarded for this
response.
(b) The candidate identified two suitable objectives, namely to make a profit and to sell a certain number of
badges. In each case the candidate provided numerical examples, which did not add to the explanation.
The candidate made no attempt to explain why these were suitable objectives for the enterprise
discussed in the case study. A mark of two was therefore awarded.


(a) The candidate correctly stated two advantages, keeping all of the profits and lack of disagreements.
Neither of these points were fully explained. The candidate then correctly identified that being the sole
decision maker can also be a disadvantage. The candidate did not explain why having no one to discuss
issues with might be a problem for an enterprise. The second disadvantage repeats the idea that the
entrepreneur is responsible for all actions. Although this may be considered to be a disadvantage the
candidate did not clearly state why this is a problem. Three marks were awarded for identification of
two potential advantages and one potential disadvantage.
(b) It did not seem clear that the candidate had fully understood the question. There was a weak attempt
to explain the objective of growth. This was awarded one mark.
Question 3
Mark scheme



(a) The candidate correctly defined both fixed and variable cost and selected correct examples from the
case study. All four marks were awarded.
(b) The candidate was required to explain the importance of accurate financial records to their own
enterprise project. The answer therefore required candidates to show some understanding of the
positive impact of keeping accurate records or the negative impacts of not keeping such records. The
candidate correctly identified two reasons for keeping accurate accounts, to keep track of cash flow
and to help with planning for sales and break-even. Each point was then developed with the use of
examples from the candidate’s bracelet making enterprise. Analysis of the impact of record keeping
was shown through explanations of how the records helped the entrepreneurs to make appropriate
decisions and could help to avoid arguments with customer over debts.


(a) The candidate gave imprecise definitions in each case. Costs were identified as will or won’t change;
there was no mention of the level of output. The examples were correctly identified from the case
study for both fixed and variable costs. Two marks were awarded for correct examples only.
(b) The candidate identified two reasons why accurate records are required; to apply for a bank loan and
to see where the business went wrong. There was a very limited attempt to apply the information to
decision-making through a brief statement that records will help to see where they went wrong. The
answer was not clearly applied to the enterprise project and there was no explanation of the impact that
accurate records would make. A mark of three was awarded to the response.


(a) A correct definition of fixed costs was provided which did mention the number of items. The example
provided, rent, was correct but was not relevant to the case study and therefore could not be rewarded
with a mark. The definition of variable costs was too vague. The example provided was not taken from
the case study and could therefore not be rewarded. One mark was awarded for the correct definition
of fixed cost.
(b) The candidate identified reasons for keeping accurate records but there was no attempt to explain or
apply the information to their own enterprise project. A mark of two was awarded.

Question 4
Mark scheme


(a) Two methods of communication suitable for a small enterprise were identified, namely emails
and letters. The third method identified, radio, was not on its own a method of communication. To
be rewarded for this answer the candidate would need to clarify how the radio would be used to
communicate with customers e.g. advertising through the radio. Two marks were awarded for the
response.
(b) Candidates were required to apply their knowledge to the enterprise discussed in the case study
and explain why, for this enterprise, existing customers are important. The candidate demonstrated
knowledge of a number of reasons for customer retention. Each point was developed to show the
effect that such customers could have upon the enterprise. Both positive and negative aspects were

considered. Although the use of the case study material was not strong the response was in the
context of Khia’ badges and points were appropriate for a newly launched enterprise. A mark of six was
awarded to the response.

(a) The candidate correctly identified posters as a method of communication. The other two responses
were vague. To gain credit the candidate would need to add further detail to clarify these methods of
communication for example advertising in newspapers. One mark was awarded.
(b) The candidate offered basic knowledge with limited development in the response to this part of the
question. There was reference to the difficulty of attracting new customers and advertising via word
of mouth with some explanation as to why this was important. The answer lacked detailed explanation
linked to the problems of a newly formed enterprise. The response was awarded three marks.

(a) The candidate correctly identified two methods of communication, namely posters and advertisements
on the internet. Leaflets were considered to be vague to gain reward. The response was awarded a
mark of two.
(b) Limited understanding of this part of the question was shown in this response. There was awareness
that existing customers will help with survival and profit, but the point is not explained or applied in
context. The response was awarded one mark.

Question 5
Mark scheme



(a) The candidate correctly identified and explained a formal source of support. Additional sources of
formal support were identified but there were only two marks available for this section of the question.
Family and friends was identified as a form of informal support but the explanation repeated the answer
credited under formal support and thus was not rewarded. A mark of three was therefore awarded to
the response.
(b) This part of the question required candidates to explain the sources of support used in their enterprise
and to discuss the effectiveness of that support. The candidate identified a number of informal sources
of support and explained the assistance that was given in each case. The effectiveness of the support
was illustrated through explanations as to why the assistance was needed.


(a) A formal and an informal source of support were identified. The attempts to explain how these sources
of support assisted enterprises were both unclear. Two marks were awarded for the identification of
sources only.
(b) The answer for this part of the question was very narrow. The candidate explained how parents had
supported the enterprise and the importance of that support was clearly explained. To gain higher
marks the candidate needed to develop the discussion with greater detail concerning the effectiveness
of support or reference to other sources of support, which were used. A mark of three was given to
this response.


(a) The candidate offered a confused response to this part of the question. A formal source of support,
banks, was identified but the explanation of how they supported enterprise was very unclear. No
informal source of support was not identified. One mark was awarded.
(b) The candidate seemed to be answering a different question to the one set. The candidate discussed
the communications that took place between stakeholders and did not explain the support given. A
named organisation was identified, which it is assumed acted as a source of formal support, and the
teacher’s role was explained. One mark was awarded for identification of sources of support used in
the candidate’s enterprise.

Section B
Question 6
Mark scheme






(a) In this answer the candidate was required to select one of the methods of finance and justify why this
was the most suitable method for this enterprise by comparing with the other two methods suggested.
Having selected government grants as the most suitable method the candidate explained why the other
sources of finance would not be suitable for a new enterprise. The candidate produced a list of reasons
why bank loans and overdrafts might be a problem for this enterprise but there was no explanation of
the suitability of the methods to purchase a computer and printer. The discussion was not thorough and
therefore a mark of eight was awarded to the response.
(b) The candidate was required to discuss the importance of cash flow to the future of the enterprise
outlined in the case study. The importance of having sufficient funds to make payments to creditors
and pay staff was explained thoroughly. The candidate used the case study material and their own
enterprise experience to provide examples that illustrated how these problems could arise and the
consequences for the future of the business if liquidity was poor. The link to future productivity and
supplier relations was discussed in detail. A one-sided answer or weak discussion could gain no
more than nine marks but this candidate provided a thorough discussion. A mark of 14 was therefore
awarded.




(a) An attempt was made to justify the chosen method of finance, an overdraft. Knowledge of the three
methods of finance was shown and the candidate identified the problems that a newly established
sole trader may face with each method. The information was provided as a list with points not fully
developed. For example the candidate identifies that it might be difficult for a sole trader to obtain
a bank loan but does not explain why this might be difficult. The lack of development of explanation
meant that the answer was awarded a mark of six.
(b) The candidate identified the importance of cash flow in helping to identify when finance will be needed
and ensuring that debtors pay on time. The answer is applied to the newly established enterprise
discussed in the case study but limited use is made of the case study material. The points are not fully
developed to explain the importance of cash flow in ensuring the survival of an enterprise and therefore
the answer lacks discussion. A mark of five was awarded to the response.



(a) The response was confused and the candidate did not show clearly that overdrafts and government
grants were understood. A decision was made on the source of finance to be selected, a loan, and
there was some attempt to link this to the case study. The attempt was not completely successful
because the candidate did not explain why a charity is likely to be given a loan. There is some basic
application in the last line which shows understanding that a loan will need to be paid back. A mark of
three was awarded.
(b) This response shows understanding of cash flow and there was a weak attempt to apply that
information to the case study enterprise, which is a charity. The response does not clearly explain why
cash flow is important. A mark of three was awarded.

Question 7
Mark scheme




(a) The candidate’s response to the first part of the question was of a good standard. The question
required the candidate to use examples from their own enterprise experience to explain the importance
of business language when dealing with stakeholders. The candidate used detailed examples of
situations where communication took place to show the importance of creating the correct impression
through communication. The explanations focused upon the organisation of the communication and
body language rather than the language used, the response did not therefore thoroughly discuss the
key aspect. A mark of eight was awarded.

(b) In the second part of the question, the candidate was required to discuss the importance of one form
of business communication, namely the business plan. The candidate showed strong knowledge of the
purpose of writing a business plan. Examples were used throughout the response to illustrate how the
business plan had helped the enterprise to be more successful. There was an attempt to offer a two-
sided discussion with an explanation of the likely consequences of a lack of planning. There was also
some limited awareness of the negative aspects of planning, namely that drawing up a plan takes time
and research. Unfortunately the costs of planning were not fully explained. A maximum of nine marks
was available for a one-sided evaluation and this candidate was awarded a mark of ten.



(a) The candidate struggled to fully develop the discussion in this response. Knowledge and application
was shown through the use of examples of communication used with different stakeholders.
Unfortunately the application was brief and the candidate did not give examples of appropriate business
language to add detail to the discussion. A mark of five was awarded to this response.
(b) The candidate offered very detailed knowledge of the contents of a business plan, with the entire
first page listing the objectives in writing a plan. The candidate offers some examples to illustrate
how the plan had assisted the entrepreneur in decision making. The response did identify a weakness
of planning, namely that the plan produced for the candidate’s enterprise was too incoherent to be
useful. The candidate needed to develop the explanations of these examples fully. A mark of eight was
awarded to this response.



(a) The response revealed the common confusion between stakeholders and shareholders. The candidate
showed a basic knowledge of why the language chosen can be important when communicating with
stakeholders but there was no attempt to apply the answer to their own enterprise experience. A mark
of two was awarded for the demonstration of knowledge.
(b) After an unclear start the response contained a relevant example of how the business plan helped the
candidate to raise finance. There was also a suggestion that the plan helped to identify the need for
promotion. This response was awarded five marks for the application of relevant knowledge to the
candidate’s enterprise project.
Mark Awarded = 7 out of 25

Cambridge International Examinations
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Email: info@cie.org.uk www.cie.org.uk
® IGCSE is the registered trademark of Cambridge International Examinations.
© Cambridge International Examinations 2013 v1 3Y06
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® IGCSE is the registered trademark of Cambridge International Examinations.

© Cambridge International Examinations 2013

Assessment at a glance ........................................................................................................ 3

Paper 1 – Written paper ........................................................................................................ 4

Section A – Case Study ........................................................................................................ 4

For ease of reference the following format has been adopted:

2 Cambridge IGCSE Enterprise (0454)

Paper 1 (1½ hours, 100 marks)

The paper will consist of two sections:

Section B – longer, more open-ended questions

Weighting 50% of total marks

Cambridge IGCSE Enterprise (0454) 3

Paper 1 – Written paper

4 Cambridge IGCSE Enterprise (0454)

Cambridge IGCSE Enterprise (0454) 5

6 Cambridge IGCSE Enterprise (0454)

Cambridge IGCSE Enterprise (0454) 7

Example candidate response grade – A

Examiner comment – grade A

Mark awarded = 7 out of 9

8 Cambridge IGCSE Enterprise (0454)

Example candidate response – grade C

Examiner comment – grade C

Mark awarded = 5 out of 9

Cambridge IGCSE Enterprise (0454) 9

Example candidate response – grade E

Examiner comment – grade E

Mark awarded = 2 out of 9

10 Cambridge IGCSE Enterprise (0454)

Cambridge IGCSE Enterprise (0454) 11

Example candidate response – grade A

12 Cambridge IGCSE Enterprise (0454)

Examiner comment – grade A

Mark awarded = 12 out of 12

Example candidate response – grade C

Cambridge IGCSE Enterprise (0454) 13

Examiner comment – grade C

Mark awarded = 6 out of 12

Example candidate response – grade E

14 Cambridge IGCSE Enterprise (0454)

Examiner comment – grade E

Mark awarded = 4 out of 12

Cambridge IGCSE Enterprise (0454) 15

Example candidate response – grade A

16 Cambridge IGCSE Enterprise (0454)

Examiner comment – grade A

Mark awarded = 10 out of 10

Cambridge IGCSE Enterprise (0454) 17

Example candidate response – grade C

Examiner comment – grade C

Mark awarded = 5 out of 10

18 Cambridge IGCSE Enterprise (0454)

Example candidate response – grade E

Examiner comment – grade E

Mark awarded = 3 out of 10

Cambridge IGCSE Enterprise (0454) 19

20 Cambridge IGCSE Enterprise (0454)

Example candidate response – grade A

Examiner comment – grade A

Cambridge IGCSE Enterprise (0454) 21

Mark awarded = 8 out of 9

Example candidate response – grade C