The Shriram Millennium School, Noida

Cycle Test - Semester I

Subject: Business Studies (Practice paper)
Class: IX

Please write answers to the questions as per the instructions given. To be used by the
examiner

1. Why is value added important?

2. State two advantages and disadvantages of division of labour.

3. Define a business plan. Enlist its contents.

4. Explain two ways in which size of a business can be measured?

5. Explain the difference between capital goods and consumer goods.

6. Differentiate between internal and external growth

7. State two ways a business may add value.

8. Explain the following terms:

(a) Needs
(b) Wants
(c) Entrepreneur
(d) Specialisation
(e) Division of labour
(f) Tertiary Sector
(g) Economic problem
(h) Industrialisation
(i) De- industrialization
(j) Mixed economy
(k) Public sector
(l) Opportunity cost

9. Explain two characteristics of a successful entrepreneur.

10. What is meant by vertical integration?

11. Enlist the benefits of horizontal integration to a business.

12. Explain why and how governments support business start-ups.

13. Mention two reasons why a business might fail?

14. How does business plan help entrepreneurs?

IGCSE/Class IX/Business Studies/2022-23 Page 1 of 2

Case Study 1 - Bean owns a small gardening business, which he started 5 years ago as a sole trader. Bean
believes providing a quality service is important to his success. Bean’s business has a number of stakeholder
groups including 2 full-time and 4 part-time workers who have all been employed by him for a number of years. He
is planning to open a new shop near a mall to further increase his sales. He feels it’s important to prepare a
business plan to achieve his goal.

a) Identify two possible reasons why Bean’s business has remained small for last five years. [2]

b) Identify and explain the method of growth adopted by Bean. [4]

c) Explain two possible reasons why preparing a business plan might be important for Bean’s business. [4]

d) Analyse the reasons as to why does he want to increase his sales. [6]

Case study 2 - Allspice is working in tertiary sector. It specializes in importing high quality spices and herbs and
sells them to local restaurants and shops. Allspice wants to increase added value. Serena, the owner, is worried
that supplies from some countries do not arrive on time or the wrong items are delivered. She said:’ I alone cannot
handle buyers, suppliers and logistics. She is planning to hire specialists and divide the work amongst them.

a) Define tertiary sector. [2]

b) Explain two ways Allspice can add value to its products. [4]
c) Identify and explain two possible opportunity costs Allspice might have due to buying
spices from foreign countries. [4]
d) Do you think dividing the work amongst employees will help Serena? Justify your statement. [6]

IGCSE/Class IX/Business Studies/2022-23 Page 2 of 2