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CIE · IGCSE · Business Studies

Understanding Business Activity
Practice Questions

227 CIE IGCSE Business Studies questions on Understanding Business Activity, each with instant feedback and a full examiner-style mark scheme.

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✨ Revision guide includes key terms, worked examples and exam technique for Understanding Business Activity.

Try 2 sample questions on Understanding Business Activity

Question 1 · 1 mark · Difficulty 1/3

A business owner uses their own savings to start a new enterprise. This source of finance is best described as:

  1. Share capital raised from external investors
  2. Personal capital contributed by the owner
  3. Retained profit reinvested from previous trading
  4. A bank loan secured against business assets
Show answer & explanation
✓ Answer: BPersonal capital contributed by the owner
When an owner uses personal savings to fund a business, this is classified as personal capital — money the owner personally invests. A bank loan involves borrowing from a financial institution. Retained profit comes from previous business earnings, not personal savings. Share capital is raised by issuing shares to outside investors.
Question 2 · 1 mark · Difficulty 1/3

A sole trader business has total revenue of $15 000 and total costs of $11 500 in one month. What is the profit for that month?

  1. $26 500
  2. $11 500
  3. $3 500
  4. $3 000
Show answer & explanation
✓ Answer: C$3 500
Profit = Total Revenue − Total Costs = $15 000 − $11 500 = $3 500. Option A incorrectly adds revenue and costs. Option B restates total costs only. Option D may result from an arithmetic error of subtracting $12 000 instead of $11 500.
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CIE IGCSE Business Studies: Understanding Business Activity FAQ

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 Understanding Business Activity 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 Understanding Business Activity 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 Understanding Business Activity typically tested on CIE IGCSE Business Studies papers?
Understanding Business Activity 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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