Enterprise Nov 21

Cambridge IGCSE™
ENTERPRISE 0454/11
Paper 1 October/November 2021
INSERT 1 hour 30 minutes
INFORMATION
*3934083818-I*
● This insert contains the case study.

● You may annotate this insert and use the blank spaces for planning. Do not write your answers on the
insert.
This document has 4 pages. Any blank pages are indicated.
DC (SLM) 220057
© UCLES 2021 [Turn over
2
The Swap Shop
Background
Jack, although still at school, knows that he wants to be an entrepreneur. Jack is convinced that he has
enterprise capability and he wants to make as much money as possible.
When his teacher announced that the class would be entering an enterprise competition, Jack was
confident that he would win. The teacher gave each student the rules of the competition and asked
them to think of an enterprise idea for homework.
At the next enterprise lesson, the students in the class discussed who they would work with and their
ideas for the competition. Jack did not know what his enterprise idea would be, but he knew that he
wanted to work alone.
Jack’s enterprise idea
Jack used secondary research to identify possible enterprise ideas. He liked two ideas:
• helping people to set up and operate their home electronic devices

• selling pre-owned (second-hand) books through online marketplaces.
Jack often helped members of his family with their new smartphones and computers, so he knew the
first enterprise idea could be possible. However, since the enterprise competition would only be for a
month, Jack decided that selling pre-owned books through online marketplaces would be the better
idea.
Jack was keen to begin his enterprise. He thought that if he started before his classmates, he would be
more likely to win.
Jack needed to find some pre-owned books to sell. He asked everyone in his family to contribute
books and his parents and grandparents each gave him some. He believed he was ready to start his
enterprise.
The next school lesson
The teacher asked the students to outline their enterprise ideas and to start their planning. She gave
each student a template for a business plan and an action plan. Jack told the teacher that he did not
need to plan, as his enterprise was ready to start.
The teacher was impressed by Jack’s resourcefulness. She was also pleased that he had taken the
initiative to start early. She asked Jack some questions about his proposed enterprise:
• How did you identify the right items to sell online?

• Which methods will you use to market your items?
• How will the buyers make payments for the items?
Jack struggled to provide answers to some of these questions. He had thought that customers would
pay electronically directly into his bank account. Jack had not thought about marketing methods or
about future items to sell.
The teacher said that financial regulations would be a problem for this enterprise idea. There are strict
regulations about the methods of payment Jack could accept, as he is not yet an adult. Although the
teacher believed that this would be a low-risk enterprise, she was unsure if it would be successful.
© UCLES 2021 0454/11/INSERT/O/N/21

3
The teacher suggested that Jack should work with a classmate, Enrique, who had a similar idea. Jack
reluctantly agreed to talk to Enrique.
Enrique’s enterprise idea
Enrique was planning to organise an event at school. He intended to name this event ‘The Swap Shop’
where students would bring items they no longer used to the event to swap (exchange) for other items.
Enrique wanted his competition entry to be a social enterprise where no revenue would be earned.
Jack could see how he and Enrique could combine both ideas. They could organise The Swap Shop
event, charging people to enter, and therefore making a profit. There could also be a stall at the event
selling items that people had donated, earning more profit.
Enrique was willing to work with Jack and agreed that charging an entrance fee might be a good
idea. He would prefer to give the profit they earned to a local charity, and thought he would be able to
persuade Jack to agree to this.
Enrique knew that there would be many tasks to do. This would include completing market research,
preparing marketing communications and keeping accurate financial records. With the competition
starting in two weeks, Enrique suggests that they complete an action plan.
© UCLES 2021 0454/11/INSERT/O/N/21

4
BLANK PAGE
Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every
reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
publisher will be pleased to make amends at the earliest possible opportunity.
To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge
Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download
at www.cambridgeinternational.org after the live examination series.
Cambridge Assessment International Education is part of the Cambridge Assessment Group. Cambridge Assessment is the brand name of the University of
Cambridge Local Examinations Syndicate (UCLES), which itself is a department of the University of Cambridge.
© UCLES 2021 0454/11/INSERT/O/N/21

Cambridge IGCSE™
* 3 9 3 4 0 8 3 8 1 8 *
ENTERPRISE 0454/11
1 hour 30 minutes
You must answer on the question paper.
You will need: Insert (enclosed)
INSTRUCTIONS
● Answer all questions.
● Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs.
● Write your name, centre number and candidate number in the boxes at the top of the page.
● Write your answer to each question in the space provided.
● Do not use an erasable pen or correction fluid.
● Do not write on any bar codes.
INFORMATION
● The total mark for this paper is 100.
● The number of marks for each question or part question is shown in brackets [ ].
● You should have received a copy of the case study before the examination. A copy of the case study is
provided with this question paper as an insert.
DC (NF) 208924/1
2
Section A
Answer all questions.
1 Jack was convinced that he had enterprise capability and he wanted to make as much money as
possible.
(a) State two objectives an enterprise may have.
1 ................................................................................................................................................
...................................................................................................................................................
2 ................................................................................................................................................
............................................................................................................................................. [2]
(b) Explain the term enterprise capability.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [2]
(c) Explain how Jack and/or Enrique used two enterprise skills. Use examples from the case
study to support your answer.
1 Enterprise skill ......................................................................................................................
Explanation ...............................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
2 Enterprise skill ......................................................................................................................
Explanation ...............................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [6]
[Total: 10]
© UCLES 2021 0454/11/O/N/21

3
2 The teacher believed that Jack’s enterprise idea would be low risk.
(a) State two risks for an enterprise.
1 ................................................................................................................................................
...................................................................................................................................................
2 ................................................................................................................................................
............................................................................................................................................. [2]
(b) Describe one method used in enterprise to identify risks.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [2]
(c) Explain two possible rewards that Jack is expecting to gain from his enterprise.
1 ................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
2 ................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [6]
[Total: 10]
© UCLES 2021 0454/11/O/N/21 [Turn over

4
3 The teacher said that financial regulations will be a problem for Jack’s enterprise idea.
(a) (i) Explain one reason why financial regulations are needed in enterprise.
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
..................................................................................................................................... [2]
(ii) Identify two other areas of enterprise covered by regulations, apart from finance.
1 ........................................................................................................................................
...........................................................................................................................................
2 ........................................................................................................................................
..................................................................................................................................... [2]
Enrique’s swap shop enterprise would be a social enterprise.
(b) Explain one possible positive benefit to the community of The Swap Shop. Use an example
from the case study to support your answer.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [3]
(c) Explain one way that an enterprise could be unethical. Use an example to support your
answer.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [3]
[Total: 10]
© UCLES 2021 0454/11/O/N/21

5
4 Jack had completed secondary market research, but had not thought about marketing methods
for his enterprise.
(a) Explain one reason why marketing is helpful to an enterprise.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [2]
(b) Explain one marketing communication method suitable for The Swap Shop enterprise.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [2]
(c) Explain two methods of market research suitable for The Swap Shop enterprise.
1 ................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
2 ................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [6]
[Total: 10]

6
5 Enrique suggested they complete an action plan.
(a) Define the term action plan.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [2]
(b) Explain two ways producing an action plan helped or would have helped your enterprise
project.
1 ................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
2 ................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [6]
(c) Describe one other non-financial document an enterprise would usually produce.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [2]
[Total: 10]
© UCLES 2021 0454/11/O/N/21

7
Section B
6 (a) Jack liked two enterprise ideas. He decided that selling pre-owned books through online
marketplaces would be the better idea.
Analyse how Jack’s decision may have been affected by each of the following:
• increased ownership of smartphones
• an increase in the price of new books.
[10]
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................

8
(b) Jack wanted to work alone but was willing to work with Enrique as a partner.
Evaluate the benefits and disadvantages to Jack of working in partnership with Enrique. [15]
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
© UCLES 2021 0454/11/O/N/21

9
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
[Total: 25]
10
BLANK PAGE
© UCLES 2021 0454/11/O/N/21

11
7 Now consider your enterprise project.
(a) There are several financial calculations and records used in enterprise which include:
• cash flow
• break-even
• profit.
Analyse how two of these calculations or records helped you to make decisions in your
enterprise project. [10]
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................

12
(b) Evaluate the appropriateness of the methods of communication you used with:
• one internal stakeholder
• one external stakeholder
during your enterprise project.
You should consider a maximum of two methods of communication, for each stakeholder, in
your answer. [15]
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
© UCLES 2021 0454/11/O/N/21
13
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
[Total: 25]
© UCLES 2021 0454/11/O/N/21
14
BLANK PAGE
© UCLES 2021 0454/11/O/N/21

15
BLANK PAGE
© UCLES 2021 0454/11/O/N/21

16
BLANK PAGE
© UCLES 2021 0454/11/O/N/21

Cambridge IGCSE™
ENTERPRISE 0454/12
INFORMATION
*1367467082-I*

insert.
DC (SLM) 220058
2
Kwame’s Home Repair Enterprise
The background
Kwame had enjoyed his enterprise lessons at school and he had learnt what was involved in setting up
an enterprise. Having left school, he was struggling to find a job because of rising unemployment in the
local area. He thought that he could use the enterprise skills he had learnt to set up his own enterprise,
if he could identify a suitable idea.
Kwame and his brother, Zane, had been helping their father with home repair tasks for several
years. Their father had taught them how to repair many home items. Zane had become skilled at
fixing electrical items and Kwame was able to repair furniture. Zane and Kwame had also completed a
number of home repair tasks for their neighbours.
The idea
Kwame thought a home repair enterprise in the local area might be profitable. He knew that many new
enterprises failed. Kwame believed that he had the skills needed to reduce the risk of failure of a future
enterprise. He decided to carry out some research.
The research
Kwame first used the internet to find information about local home repair enterprises. He researched
the services that each enterprise offered and the prices they charged. Kwame then produced a
questionnaire which he gave out to his friends and family.
It was clear from the answers to the questionnaires that there was likely to be a strong demand for the
home repair enterprise that Kwame was proposing.
Finance planning
Kwame thought that, before starting an enterprise, he should plan the finance. His questionnaire had
indicated the price that customers would be willing to pay for home repairs. Kwame’s internet research
had identified the prices his competitors were charging. He believed that if he could charge a lower
price than the competitors, he would attract customers. He thought US$10 per hour would be the right
price to charge.
He researched the costs of the equipment he would need to set up his enterprise. Fig. 1 shows these
costs.
Costs of equipment
Item Cost (US$)
Van 1000
Tools 320
Smartphone 30
Fig. 1
Kwame thought that the variable costs would be $1 per hour. This would cover fuel and materials.
© UCLES 2021 0454/12/INSERT/O/N/21

3
Kwame realised his personal savings would not be enough to buy the equipment he needed. He would
need another source of finance. He wondered if his brother, Zane, would be willing to invest some
funds in the enterprise.
Although Kwame had not identified all the costs, he thought he had enough information to discuss the
enterprise idea with Zane. Kwame arranged a meeting with his brother.
The meeting
The brothers met in a local café to discuss the proposed home repair enterprise. At this meeting,
Kwame showed Zane the research he had completed.
Zane was interested in the proposed new enterprise. However, before taking the risk of investing his
money, he wanted more information. He suggested that they should calculate the break-even number
of hours to see if starting the enterprise would be worthwhile. Kwame explained that they could do this
already as this enterprise would have no variable costs. Therefore, Zane suggested Kwame should
produce a detailed business plan. This business plan would help Zane to decide whether to invest in
the enterprise or not. The two brothers agreed to meet again the next week.
Kwame decided that he would prepare thoroughly for the next meeting. He realised that by meeting
informally in a café he had chosen the wrong method of communication to persuade his brother to
invest. Kwame would have to think carefully about the method of communication he would use in the
future.
He started to write the business plan, but he realised that he had forgotten the calculation Zane had
asked him to include. Kwame had to text Zane to find out what calculation he had wanted.
© UCLES 2021 0454/12/INSERT/O/N/21

4
BLANK PAGE
© UCLES 2021 0454/12/INSERT/O/N/21

Cambridge IGCSE™
* 1 3 6 7 4 6 7 0 8 2 *
ENTERPRISE 0454/12
1 hour 30 minutes
INSTRUCTIONS
INFORMATION
DC (MB) 208926/4
2
Section A
1 Kwame did not set any formal aims for his proposed new enterprise.
(a) Complete the following sentences by inserting one word in each space.
(i) Aims are what enterprises want to achieve in the .............. term.
(ii) Objectives are what enterprises want to achieve in the .............. term. [2]
(b) Explain two suitable aims or objectives that Kwame might have for his proposed new
enterprise.
1 Aim /objective ........................................................................................................................
Explanation ...............................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
2 Aim /objective ........................................................................................................................
Explanation ...............................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [4]
(c) State four enterprise skills.
1 ................................................................................................................................................
2 ................................................................................................................................................
3 ................................................................................................................................................
4 .......................................................................................................................................... [4]
[Total: 10]
© UCLES 2021 0454/12/O/N/21

3
2 Kwame thought there was demand for his home repair enterprise, but he needed to reduce the
risks.
(a) Explain two reasons why demand for a product or service may change.
1 ................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
2 ................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [4]
(b) (i) Identify one risk of Kwame’s proposed new enterprise.
...........................................................................................................................................
..................................................................................................................................... [1]
(ii) Explain one likely impact on Kwame’s proposed new enterprise of the risk identified in
part (i).
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
..................................................................................................................................... [2]

4
(c) Explain one method that could be used to reduce the risks in Kwame’s enterprise.
Method ......................................................................................................................................
Explanation ...............................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [3]
[Total: 10]
© UCLES 2021 0454/12/O/N/21

5
3 Kwame completed some finance planning before his meeting with Zane.
(a) Explain one reason why it is important to plan before a meeting.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [2]
(b) Identify two weaknesses in Kwame’s planning.
1 ................................................................................................................................................
2 .......................................................................................................................................... [2]
(c) Explain how one document could have been used to improve Kwame’s meeting with Zane.
Meeting document ....................................................................................................................
Explanation ...............................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [3]
(d) Explain one method of communication, other than a meeting, that Kwame could have used to
persuade Zane to invest in the enterprise.
Method of communication .........................................................................................................
Explanation ................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [3]
[Total: 10]

6
4 (a) Define the following terms:
(i) fixed costs
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
..................................................................................................................................... [2]
(ii) debt.
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
..................................................................................................................................... [2]
(b) Explain two suitable sources of start-up funding for Kwame’s proposed new enterprise, other
than personal savings.
1 Source ..................................................................................................................................
Explanation ...............................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
2 Source ..................................................................................................................................
Explanation ...............................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [6]
[Total: 10]
© UCLES 2021 0454/12/O/N/21

7
5 Zane suggested they complete a business plan.
(a) State two sections normally included in a business plan.
1 ................................................................................................................................................
2 .......................................................................................................................................... [2]
(b) Explain one reason why a business plan is necessary for an enterprise.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [2]
(c) Calculate the number of hours Kwame would need to work to break even. Show your working.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [4]
(d) Explain one example of a cost that could have been included in Fig. 1.
Example of cost ........................................................................................................................
Explanation ...............................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [2]
[Total: 10]

8
BLANK PAGE
© UCLES 2021 0454/12/O/N/21

9
Section B
6 (a) There are many methods that can be used to measure customer satisfaction. These include:
• feedback questionnaires
• number of complaints
• number of sales.
Analyse how Kwame and Zane could have used two of these to measure customer
satisfaction in their home repair enterprise. [10]
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................

10
(b) Kwame had intended to operate his enterprise as a sole trader. He considered asking Zane if
he would join him as a partner.
Evaluate the advantages and disadvantages to Kwame of operating as a sole trader. Support
your answer with examples from the case study. [15]
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
© UCLES 2021 0454/12/O/N/21

11
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
[Total: 25]
12
BLANK PAGE
© UCLES 2021 0454/12/O/N/21

13
7 Now consider your enterprise project.
(a) Examples of stakeholders include customers, employees, suppliers, lenders, the local
business community and local government.
Analyse how any two of these stakeholders affected the operation of your enterprise
project. [10]
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................

14
(b) The success of an enterprise can be evaluated in many ways. These include:
• achieving sales
• producing a quality good or service
• profit
• repeat custom.
Evaluate the success of your enterprise project using two of the ways listed above. [15]
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
© UCLES 2021 0454/12/O/N/21

15
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
[Total: 25]
© UCLES 2021 0454/12/O/N/21
16
BLANK PAGE
© UCLES 2021 0454/12/O/N/21

Cambridge IGCSE™
ENTERPRISE 0454/13
INFORMATION
*9834204064-I*

insert.
DC (MB) 221374
2
The reusable drinking bottle enterprise
The background
Marissa is concerned about the environment. At school she had organised the collection of empty
cans. She took the cans collected to be recycled1 into new products.
Watching a television documentary on pollution, Marissa was shocked to hear that by 2050 there will
be more plastic than fish in the sea. Plastic bottles were identified as a serious part of the problem.
Marissa knew that she had to do something to help reduce this problem. After chatting with her friends,
she decided to organise a beach clean-up day with them.
At the beach clean-up day, Marissa and her friends walked along the beach collecting litter. At the
end of the walk, each person had two large bags of litter. The problem was what to do with the litter
collected. She needed a creative solution. Marissa wondered if the plastic could be recycled into usable
products, so she decided to do some research.
The research
Marissa visited the recycling company that she had worked with at school. She saw thousands of
single-use plastic bottles being produced. The recycling company manager explained that many of
these bottles were bought and discarded every day. Although the bottles were made from recycled
material, many would eventually become litter in the ocean.
Marissa thought that as plastic bottles were a significant problem on the beach, this would be the
product she should focus on. She believed that encouraging people to use fewer single-use plastics
might have a more positive impact on pollution than recycling. Marissa decided that the solution might
be to persuade people to use a reusable drinking bottle.
The product
Marissa asked a product designer, Fahim, to design a reusable drinking bottle. Fahim produced a
design and also made one bottle (a prototype) entirely from recycled materials. Fig. 1.1 shows this
prototype.
Fig. 1.1
Marissa showed the prototype to the recycling company manager. Although he liked it, a new machine
would be needed to manufacture the bottles. The machine would cost US$1500. The recycling
company manager would not risk investing this amount of money unless he was convinced that he
could sell enough bottles to cover that cost.
Marissa also showed the prototype to her friends. They said that if the bottle would help to reduce
pollution, they might buy it. However, the most important factors for them would be the final design and
the price.
1recycled: the method of production that changes waste into new items
© UCLES 2021 0454/13/INSERT/O/N/21
3
Marissa had thought that a price of US$5 per bottle would be acceptable to potential customers but,
she had not researched this. Marissa decided that her next step was to focus on how to market the
reusable drinking bottle.
Marketing
Marissa decided to focus her marketing on places where many people buy bottled drinks. School
students could be a large target market for the reusable drinking bottle. Marissa therefore decided to
ask the Principal of the local school for permission to talk to the students. She contacted the school to
arrange a meeting with the Principal.
The meeting
At the meeting with the Principal, Marissa explained the problem of plastic waste. She showed him the
reusable drinking bottle and explained how this would help to reduce pollution. The Principal was very
impressed with Marissa’s enterprising idea. He was willing to allow her to give a presentation to the
students. The Principal suggested that Marissa come back in one week’s time.
The Principal also wanted to buy one reusable drinking bottle for each of the 150 members of staff.
Marissa had work to do. She needed to prepare an inspirational presentation.
© UCLES 2021 0454/13/INSERT/O/N/21

4
BLANK PAGE
© UCLES 2021 0454/13/INSERT/O/N/21

Cambridge IGCSE™
* 9 8 3 4 2 0 4 0 6 4 *
ENTERPRISE 0454/13
1 hour 30 minutes
INSTRUCTIONS
INFORMATION
DC (RW) 208928/2
2
BLANK PAGE
© UCLES 2021 0454/13/O/N/21

3
Section A
1 Marissa used several enterprise skills when she was organising the reusable drinking bottle
enterprise.
(a) Explain what is meant by the following enterprise skills:
(i) problem-solving .................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
(ii) creativity. ...........................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
..................................................................................................................................... [4]
(b) Explain how each of the following stakeholders could affect Marissa’s proposed enterprise:
(i) customers ..........................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
..................................................................................................................................... [3]
(ii) the recycling company manager. ......................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
..................................................................................................................................... [3]
[Total: 10]

4
2 All enterprises involve some level of risk.
(a) Explain the effect of:
(i) one health and safety risk in an enterprise
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
..................................................................................................................................... [2]
(ii) one production risk in an enterprise.
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
..................................................................................................................................... [2]
(b) Explain how Marissa could have used market research to reduce the risks in her enterprise.
Use an example from the case study to support your answer.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [3]
(c) Explain one reason why Marissa might decide not to start the reusable drinking bottle
enterprise. Use an example from the case study to support your answer.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [3]
[Total: 10]
© UCLES 2021 0454/13/O/N/21

5
3 Marissa’s enterprise was ethical and it would have a positive impact on the local community.
(a) Define the term ethics.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [2]
(b) Explain one positive impact that an enterprise might have on a local community. Use an
example from any enterprise you are aware of to support your answer.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [3]
(c) Explain one negative impact that an enterprise might have on a community. Use an example
from any enterprise you are aware of to support your answer.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [3]
(d) Describe one way in which laws and regulations could affect the marketing of an enterprise.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [2]
[Total: 10]

6
4 Marissa used different methods of communication.
(a) Describe one informal method of communication that Marissa used.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [2]
(b) Explain one reason why a presentation was a suitable method of communication with the
school students.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [2]
(c) Justify a suitable method of marketing communication that Marissa could use to encourage
sales of the reusable drinking bottles to:
(i) customers from a local fitness centre ................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
(ii) international customers. ....................................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
..................................................................................................................................... [6]
[Total: 10]
© UCLES 2021 0454/13/O/N/21

7
5 (a) State one example of a variable cost for an enterprise.
............................................................................................................................................. [1]
(b) Explain one reason why an enterprise would need a business plan.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [2]
(c) Explain two reasons why a business plan may need to be updated.
1 ................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
2 ................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [4]
(d) Describe one document Marissa could have used in her meetings.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [3]
[Total: 10]

8
Section B
6 (a) Marissa’s friends said the most important factors for them would be the final design and the
price of a reusable drinking bottle.
Analyse two methods of market research that Marissa could use to find out what other
potential customers would want from a reusable drinking bottle. [10]
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
© UCLES 2021 0454/13/O/N/21

9
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
10
(b) The recycling company manager would not risk investing this amount of money unless he
was convinced that he could sell enough bottles to cover the cost.
Evaluate whether the recycling company manager should invest in the new machine. Use a
break-even calculation to support your answer. [15]
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
[Total: 25]
© UCLES 2021 0454/13/O/N/21

11
Now consider your enterprise project.
7 (a) Planning is an important part of the negotiation process. It includes:

• setting objectives
• choosing evidence to use
• selecting the benefits of the proposal
• selecting the weaknesses of the proposal
• considering arguments and counter-arguments.
Discuss the importance of any two of the above stages to the success of a negotiation you
were involved in during your enterprise project. [10]
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................

12
(b) Start-up funding could be obtained from:

• banks
• family and friends
• personal savings
• selling shares.
Evaluate the positive and negative effects of two sources of finance you used, or could have
used, in your enterprise project. You may include the sources of finance listed above in
your answer. [15]
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
© UCLES 2021 0454/13/O/N/21

13
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
[Total: 25]
© UCLES 2021 0454/13/O/N/21
14
BLANK PAGE
© UCLES 2021 0454/13/O/N/21

15
BLANK PAGE
© UCLES 2021 0454/13/O/N/21

16
BLANK PAGE
© UCLES 2021 0454/13/O/N/21

Enterprise Nov 21

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Enterprise Nov 21

Uploaded by

Copyright:

Available Formats

Cambridge IGCSE™

INSERT 1 hour 30 minutes

● This insert contains the case study.

This document has 4 pages. Any blank pages are indicated.

The Swap Shop

Jack’s enterprise idea

• helping people to set up and operate their home electronic devices

The next school lesson

• How did you identify the right items to sell online?

© UCLES 2021 0454/11/INSERT/O/N/21

Enrique’s enterprise idea

© UCLES 2021 0454/11/INSERT/O/N/21

© UCLES 2021 0454/11/INSERT/O/N/21

You must answer on the question paper.

You will need: Insert (enclosed)

This document has 16 pages. Any blank pages are indicated.

Answer all questions.

(a) State two objectives an enterprise may have.

(b) Explain the term enterprise capability.

1 Enterprise skill ......................................................................................................................

2 Enterprise skill ......................................................................................................................

© UCLES 2021 0454/11/O/N/21

(a) State two risks for an enterprise.

(b) Describe one method used in enterprise to identify risks.

© UCLES 2021 0454/11/O/N/21 [Turn over

Enrique’s swap shop enterprise would be a social enterprise.

© UCLES 2021 0454/11/O/N/21

(a) Explain one reason why marketing is helpful to an enterprise.

© UCLES 2021 0454/11/O/N/21 [Turn over

5 Enrique suggested they complete an action plan.

(a) Define the term action plan.

© UCLES 2021 0454/11/O/N/21

Answer all questions.

© UCLES 2021 0454/11/O/N/21 [Turn over

© UCLES 2021 0454/11/O/N/21

© UCLES 2021 0454/11/O/N/21

7 Now consider your enterprise project.

© UCLES 2021 0454/11/O/N/21 [Turn over

during your enterprise project.

© UCLES 2021 0454/11/O/N/21

© UCLES 2021 0454/11/O/N/21

© UCLES 2021 0454/11/O/N/21

INSERT 1 hour 30 minutes

● This insert contains the case study.

This document has 4 pages. Any blank pages are indicated.

Kwame’s Home Repair Enterprise

Item Cost (US$)

© UCLES 2021 0454/12/INSERT/O/N/21

© UCLES 2021 0454/12/INSERT/O/N/21

© UCLES 2021 0454/12/INSERT/O/N/21

You must answer on the question paper.

You will need: Insert (enclosed)

This document has 16 pages. Any blank pages are indicated.

Answer all questions.

1 Aim /objective ........................................................................................................................

2 Aim /objective ........................................................................................................................

(c) State four enterprise skills.

© UCLES 2021 0454/12/O/N/21

(b) (i) Identify one risk of Kwame’s proposed new enterprise.

© UCLES 2021 0454/12/O/N/21 [Turn over

© UCLES 2021 0454/12/O/N/21

(a) Explain one reason why it is important to plan before a meeting.