Mini practice paper: 8 questions
Mixed-difficulty questions from across the Business Studies syllabus. Tap "Show answer" after each to check yourself.
Q1 · Difficulty 1/3
Which promotional method is best described as a non-paid form of communication about a business that appears in the media?
- Sales promotion
- Public relations
- Personal selling
- Direct mail
Show answer & explanation
✓ Answer: B — Public relations
Public relations involves managing the spread of information about a business, including securing unpaid media coverage such as press releases and news stories. Sales promotion involves short-term incentives to boost sales. Personal selling is a paid, face-to-face sales activity. Direct mail involves sending promotional materials directly to consumers at a cost.
Q2 · Difficulty 1/3
A business has total revenue of $500,000 and total costs of $380,000. What is its profit?
- $120,000
- $880,000
- $380,000
- $500,000
Show answer & explanation
✓ Answer: A — $120,000
Profit = Total Revenue − Total Costs = $500,000 − $380,000 = $120,000. Option A incorrectly adds revenue and costs. Option C states only the total costs. Option D states only the total revenue.
Q3 · Difficulty 1/3
A business pays its workers a fixed amount for each unit they produce, regardless of time worked. What is this method of payment called?
- Piece rate
- Time rate
- Salary
- Commission
Show answer & explanation
✓ Answer: A — Piece rate
Piece rate pay is calculated per unit produced, incentivising output. Time rate pays per hour worked. Salary is a fixed annual amount paid regardless of output. Commission is a percentage of sales value, typically used in sales roles.
Q4 · Difficulty 2/3
A business has 120 employees and 8 managers. If each manager supervises an equal number of employees, what is the span of control for each manager?
- 8
- 15
- 16
- 12
Show answer & explanation
✓ Answer: B — 15
Span of control = total employees ÷ number of managers = 120 ÷ 8 = 15. Option A (8) is the number of managers, not subordinates per manager. Option B (12) results from an arithmetic error. Option D (16) overcounts and does not match the correct division.
Q5 · Difficulty 2/3
According to Maslow's hierarchy of needs, which level must be satisfied before an employee seeks 'esteem needs'?
- Physiological needs
- Self-actualisation needs
- Safety needs
- Social/belonging needs
Show answer & explanation
✓ Answer: D — Social/belonging needs
Maslow's hierarchy places social/belonging needs (level 3) directly below esteem needs (level 4), so social needs must be met first. Self-actualisation is the highest level, above esteem. Physiological and safety needs are levels 1 and 2, below social needs.
Q6 · Difficulty 2/3
A luxury car brand targets only high-income consumers rather than the entire car market. Which type of market segmentation is the brand primarily using?
- Geographic segmentation
- Behavioural segmentation
- Psychographic segmentation
- Demographic segmentation
Show answer & explanation
✓ Answer: D — Demographic segmentation
Demographic segmentation divides the market by measurable characteristics such as income, age, or gender; targeting high-income consumers is an income-based demographic segment. Geographic segmentation is based on location. Psychographic segmentation is based on lifestyle and values. Behavioural segmentation is based on purchasing behaviour such as usage rate or brand loyalty.
Q7 · Difficulty 1/3
A business has total revenue of $150,000 and total costs of $110,000. What is its profit?
- $260,000
- $40,000
- $110,000
- $15,000
Show answer & explanation
✓ Answer: B — $40,000
$40,000 is correct because Profit = Total Revenue − Total Costs = $150,000 − $110,000 = $40,000. Option B incorrectly adds revenue and costs. Option C restates total costs only. Option D divides revenue by 10, which has no basis in the formula.
Q8 · Difficulty 1/3
A business conducts market research by sending questionnaires to a randomly selected group of 500 customers. Which type of market research is this?
- Primary research using a sample
- Secondary research using a sample
- Primary research using a census
- Secondary research using a census
Show answer & explanation
✓ Answer: A — Primary research using a sample
Questionnaires sent by the business to collect new data constitute primary research; using 500 selected customers rather than every customer makes it a sample. Secondary research uses already-published data, so B and D are incorrect. A census surveys every member of the population, not a selected group, so C is incorrect.
CIE IGCSE Business Studies FAQ
What does the CIE IGCSE Business Studies exam look like?
The CIE IGCSE Business Studies exam is structured across 3 components. Paper 1 (Multiple Choice): 40 multiple-choice questions, 1 mark each. 45 minutes. Tests breadth of knowledge. Paper 2 (Core) / Paper 4 (Extended): Structured written paper. 1 hour 30 minutes (Core) or 1 hour 45 minutes (Extended). Tests depth of understanding and application. Paper 6 (Alternative to Practical): Written paper assessing practical skills for candidates without lab access. 1 hour. Worth ~20% of the total. Total exam time: ~3 hours, depending on tier (Core vs Extended).
Can I download a free CIE IGCSE Business Studies past paper?
Real CIE past papers are published directly by CIE on their official website. Kramizo doesn't redistribute copyrighted past papers, but we do generate free AI-written practice papers in the exact same style — same command words, same difficulty tier, same mark conventions. Use this practice paper as warm-up, then time yourself on official past papers before exam day.
How is CIE IGCSE Business Studies graded?
Grades: A* (highest) to G (lowest), with U (ungraded). Most universities require C or above. Kramizo's practice questions are tagged with difficulty 1-3 mapping roughly to the lower, middle, and top grade boundaries you'll encounter in the real exam.