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HomeCIE IGCSE Business StudiesBusiness activity: the concept of adding value
CIE · IGCSE · Business Studies

Business activity: the concept of adding value
Practice Questions

20 CIE IGCSE Business Studies questions on Business activity: the concept of adding value, each with instant feedback and a full examiner-style mark scheme.

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Try 2 sample questions on Business activity: the concept of adding value

Question 1 · 1 mark · Difficulty 1/3

Which of the following best defines 'added value' in a business context?

  1. The profit a business makes after deducting wages and overheads
  2. The increase in a business's market share over a financial year
  3. The total revenue earned by a business after paying all its costs
  4. The difference between the selling price of a product and the cost of bought-in materials
Show answer & explanation
✓ Answer: DThe difference between the selling price of a product and the cost of bought-in materials
Added value is specifically the difference between the selling price of a product or service and the cost of the materials and components bought in to make it. Option A describes net profit, not added value. Option C confuses added value with profit after all costs. Option D describes market growth, which is unrelated to adding value.
Question 2 · 1 mark · Difficulty 2/3

A furniture maker buys timber for $40, spends $20 on other materials, and sells the finished chair for $110. What is the added value created?

  1. $70
  2. $110
  3. $50
  4. $90
Show answer & explanation
✓ Answer: C$50
Added value = selling price − cost of bought-in materials = $110 − ($40 + $20) = $110 − $60 = $50. Option B ($70) incorrectly subtracts only the timber cost. Option C ($90) subtracts only the other materials. Option D ($110) is simply the revenue with no deduction at all.
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CIE IGCSE Business Studies: Business activity: the concept of adding value FAQ

How many CIE IGCSE Business Studies questions on Business activity: the concept of adding value are there on Kramizo?
Kramizo currently has 20 exam-board-aligned practice questions on Business activity: the concept of adding value for CIE IGCSE Business Studies, with new questions added every week. Each question gives you instant feedback and a full examiner-style mark scheme that tells you exactly what would earn marks on a real CIE paper. The questions span the full difficulty range — from straightforward recall (level 1) right up to multi-step reasoning and evaluation (level 3) — so the bank works for first-pass revision and final exam-week stress testing alike.
Is Kramizo free for CIE IGCSE students preparing for Business Studies?
Yes — completely free. Every student gets 45 questions a day on the free plan, with no card required and no trial countdown. That free quota works across every subject and every topic in our bank, so you can mix Business activity: the concept of adding value practice with other Business Studies topics or even switch to a totally different CIE subject without paying anything. Kramizo's optional Pro plan removes the daily cap and adds detailed progress analytics, but the free tier is the real product — used by thousands of GCSE, IGCSE and CSEC students.
Are the Business activity: the concept of adding value questions aligned to the official CIE IGCSE Business Studies syllabus?
Every question is written against the published CIE IGCSE Business Studies specification, including the exact command words (state, describe, explain, calculate, evaluate, etc.), mark allocations, and difficulty tier you'd see on a real CIE paper. Explanations are written in the style of official examiner mark schemes — they tell you what is being awarded marks and why distractors are wrong, not just whether you got it right. The bank is continually refined to match the latest syllabus updates from CIE.
How is Business activity: the concept of adding value typically tested on CIE IGCSE Business Studies papers?
Business activity: the concept of adding value appears across multiple question types on real CIE IGCSE Business Studies papers — most commonly as multiple-choice questions in the objective section, structured short-answer questions in the main paper, and occasionally as part of an extended response. Kramizo's practice bank reflects that mix: 4-option MCQs, true/false statements, fill-in-the-blank key terms, multi-select questions, and ordering questions. Working through the bank gives you exposure to every question style examiners actually use.

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