Cambridge IGCSE ™ BUSINESS STUDIES 0450 / 22 Paper 2 Case Study October/November 2025 MARK SCHEME Maximum Mark: 80 Published This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the examination. It shows the basis on which Examiners were instructed to award marks. It does not indicate the details of the discussions that took place a t an Examiners’ meeting before marking began, which would have considered the acceptability of alternative answers. Mark schemes should be read in conjunction with the question paper and the Principal Examiner Report f or Teachers. Cambridge International will not enter into discussions about these mark schemes. Cambridge International is publishing the mark schemes f or the October/November 2025 series f or most Cambridge IGCSE, Cambridge International A and AS Level components, and some Cambridge O Level components. This document consists of 22 printed pages. © Cambridge University Press & Assessment 2025 [Turn over

Cambridge IGCSE ™
BUSINESS STUDIES 0450 / 22
Paper 2 Case Study October/November 2025
MARK SCHEME
Maximum Mark: 80
Published
This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the
examination. It shows the basis on which Examiners were instructed to award marks. It does not indicate the
details of the discussions that took place a t an Examiners’ meeting before marking began, which would have
considered the acceptability of alternative answers.
Mark schemes should be read in conjunction with the question paper and the Principal Examiner Report f or
Teachers.
Cambridge International will not enter into discussions about these mark schemes.
Cambridge International is publishing the mark schemes f or the October/November 2025 series f or most
Cambridge IGCSE, Cambridge International A and AS Level components, and some Cambridge O Level
components.
This document consists of 22 printed pages.
© Cambridge University Press & Assessment 2025 [Turn over

0450 / 22 Cambridge IGCSE – Mark Scheme October/November PUBLISHED 2025 Generic Marking Principles These general marking principles must be applied by all examiners when marking candidate answers. They should be applied alongside the specific content of the mark scheme or generic level descript i o n s for a question. Each question paper and mark scheme will also comply with these marking principles. GENERIC MARKING PRINCIPLE 1: Marks must be awarded in line with: • the specific content of the mark scheme or the generic level descriptors for the question • the specific skills defined in the mark scheme or in the generic level descriptors for the question • the standard of response required by a candidate as exemplified by the standardisation scripts. GENERIC MARKING PRINCIPLE 2: Marks awarded are always whole marks (not half marks, or other fractions). GENERIC MARKING PRINCIPLE 3: Marks must be awarded positively : • marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond the scope of the syllabus and mark scheme, referring to your Team Leader as appropriate • marks are awarded when candidates clearly demonstrate what they know and can do • marks are not deducted for errors • marks are not deducted for omissions • answers should only be judged on the quality of spelling, punctuation and grammar when these features are specifically assessed by the question as indicated by the mark scheme. The meaning, however, should be unambiguous. GENERIC MARKING PRINCIPLE 4: Rules must be applied consistently, e.g. in situations where candidates have not followed instructions or in the application of generic level descriptors. GENERIC MARKING PRINCIPLE 5: Marks should be awarded using the full range of marks defined in the mark scheme for the question (however; the use of the full mark range may be limited according to the quality of the candidate responses seen). GENERIC MARKING PRINCIPLE 6: Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should not be awarded with grade thresholds or grade descriptors in mind. © Cambridge University Press & Assessment 2025 Page 2 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2025
Generic Marking Principles
These general marking principles must be applied by all examiners when marking candidate answers.
They should be applied alongside the specific content of the mark scheme or generic level
descript i o n s for a question. Each question paper and mark scheme will also comply with these
marking principles.
GENERIC MARKING PRINCIPLE 1:
Marks must be awarded in line with:
• the specific content of the mark scheme or the generic level descriptors for the question
• the specific skills defined in the mark scheme or in the generic level descriptors for the question
• the standard of response required by a candidate as exemplified by the standardisation scripts.
GENERIC MARKING PRINCIPLE 2:
Marks awarded are always whole marks (not half marks, or other fractions).
GENERIC MARKING PRINCIPLE 3:
Marks must be awarded positively :
• marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit
is given for valid answers which go beyond the scope of the syllabus and mark scheme,
referring to your Team Leader as appropriate
• marks are awarded when candidates clearly demonstrate what they know and can do
• marks are not deducted for errors
• marks are not deducted for omissions
• answers should only be judged on the quality of spelling, punctuation and grammar when these
features are specifically assessed by the question as indicated by the mark scheme. The
meaning, however, should be unambiguous.
GENERIC MARKING PRINCIPLE 4:
Rules must be applied consistently, e.g. in situations where candidates have not followed
instructions or in the application of generic level descriptors.
GENERIC MARKING PRINCIPLE 5:
Marks should be awarded using the full range of marks defined in the mark scheme for the question
(however; the use of the full mark range may be limited according to the quality of the candidate
responses seen).
GENERIC MARKING PRINCIPLE 6:
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should
not be awarded with grade thresholds or grade descriptors in mind.
© Cambridge University Press & Assessment 2025 Page 2 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November PUBLISHED 2025 Social Science - Specific Marking Principles (for point - based marking) 1 Components using point - based marking: • Point marking is often used to reward knowledge, understanding and application of skills. We give credit where the candidate’s answer shows relevant knowledge, understanding and application of skills in answering the question. We do not give credit where t he answer shows confusion. From this it follows that we: a DO credit answers which are worded differently from the mark scheme if they clearly convey the same meaning (unless the mark scheme requires a specific term) b DO credit alternative answers/examples which are not written in the mark scheme if they are correct c DO credit answers where candidates give more than one correct answer in one prompt/numbered/scaffolded space where extended writing is required rather than list - type answers. For example, questions that require n reasons (e.g. State two reasons …). d DO NOT credit answers simply for using a ‘key term’ unless that is all that is required. (Check for evidence it is understood and not used wrongly.) e DO NOT credit answers which are obviously self - contradicting or trying to cover all possibilities f DO NOT give further credit for what is effectively repetition of a correct point already credited unless the language itself is being tested. This applies equally to ‘mirror statements’ (i.e. polluted/not polluted). g DO NOT require spellings to be correct, unless this is part of the test. However spellings of syllabus terms must allow for clear and unambiguous separation from other syllabus terms with which they may be confused (e.g. Corrasion/Corrosion) 2 Presentation of mark scheme: • Slashes (/) or the word ‘or’ separate alternative ways of making the same point. • Semi colons (;) bullet points (•) or figures in brackets (1) separate different points. • Content in the answer column in brackets is for examiner information/context to clarify the marking but is not required to earn the mark (except Accounting syllabuses where they indicate negative numbers). 3 Calculation questions: • The mark scheme will show the steps in the most likely correct method(s), the mark for each step, the correct answer(s) and the mark for each answer • If working/explanation is considered essential for full credit, this will be indicated in the question paper and in the mark scheme. In all other instances, the correct answer to a calculation should be given full credit, even if no supporting working is s hown. • Where the candidate uses a valid method which is not covered by the mark scheme, award equivalent marks for reaching equivalent stages. • Where an answer makes use of a candidate’s own incorrect figure from previous working, the ‘own figure rule’ applies: full marks will be given if a correct and complete method is used. Further guidance will be included in the mark scheme where necessary an d any exceptions to this general principle will be noted. © Cambridge University Press & Assessment 2025 Page 3 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2025
Social Science - Specific Marking Principles
(for point - based marking)
1 Components using point - based marking:
• Point marking is often used to reward knowledge, understanding and application of skills.
We give credit where the candidate’s answer shows relevant knowledge, understanding
and application of skills in answering the question. We do not give credit where t he answer
shows confusion.
From this it follows that we:
a DO credit answers which are worded differently from the mark scheme if they clearly
convey the same meaning (unless the mark scheme requires a specific term)
b DO credit alternative answers/examples which are not written in the mark scheme if they
are correct
c DO credit answers where candidates give more than one correct answer in one
prompt/numbered/scaffolded space where extended writing is required rather than list - type
answers. For example, questions that require n reasons (e.g. State two reasons …).
d DO NOT credit answers simply for using a ‘key term’ unless that is all that is required.
(Check for evidence it is understood and not used wrongly.)
e DO NOT credit answers which are obviously self - contradicting or trying to cover all
possibilities
f DO NOT give further credit for what is effectively repetition of a correct point already
credited unless the language itself is being tested. This applies equally to ‘mirror
statements’ (i.e. polluted/not polluted).
g DO NOT require spellings to be correct, unless this is part of the test. However spellings of
syllabus terms must allow for clear and unambiguous separation from other syllabus terms
with which they may be confused (e.g. Corrasion/Corrosion)
2 Presentation of mark scheme:
• Slashes (/) or the word ‘or’ separate alternative ways of making the same point.
• Semi colons (;) bullet points (•) or figures in brackets (1) separate different points.
• Content in the answer column in brackets is for examiner information/context to clarify the
marking but is not required to earn the mark (except Accounting syllabuses where they
indicate negative numbers).
3 Calculation questions:
• The mark scheme will show the steps in the most likely correct method(s), the mark for
each step, the correct answer(s) and the mark for each answer
• If working/explanation is considered essential for full credit, this will be indicated in the
question paper and in the mark scheme. In all other instances, the correct answer to a
calculation should be given full credit, even if no supporting working is s hown.
• Where the candidate uses a valid method which is not covered by the mark scheme,
award equivalent marks for reaching equivalent stages.
• Where an answer makes use of a candidate’s own incorrect figure from previous working,
the ‘own figure rule’ applies: full marks will be given if a correct and complete method is
used. Further guidance will be included in the mark scheme where necessary an d any
exceptions to this general principle will be noted.
© Cambridge University Press & Assessment 2025 Page 3 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November PUBLISHED 2025 4 Annotation: • For point marking, ticks can be used to indicate correct answers and crosses can be used to indicate wrong answers. There is no direct relationship between ticks and marks. Ticks have no defined meaning for levels of response marking. • For levels of response marking, the level awarded should be annotated on the script. • Other annotations will be used by examiners as agreed during standardisation, and the meaning will be understood by all examiners who marked that paper. © Cambridge University Press & Assessment 2025 Page 4 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2025
4 Annotation:
• For point marking, ticks can be used to indicate correct answers and crosses can be used
to indicate wrong answers. There is no direct relationship between ticks and marks. Ticks
have no defined meaning for levels of response marking.
• For levels of response marking, the level awarded should be annotated on the script.
• Other annotations will be used by examiners as agreed during standardisation, and the
meaning will be understood by all examiners who marked that paper.
© Cambridge University Press & Assessment 2025 Page 4 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November PUBLISHED 2025 Annotations guidance for centres Examiners use a system of annotations as a shorthand for communicating their marking decisions to one another. Examiners are trained during the standardisation process on how and when to use annotations. The purpose of annotations is to inform the standard isation and monitoring processes and guide the supervising examiners when they are checking the work of examiners within their team. The meaning of annotations and how they are used is specific to each component and is understood by all examiners who mark the component. We publish annotations in our mark schemes to help centres understand the annotations they may see on copies of scripts. Note that there may not be a direct correlation between the number of annotations on a script and the mark awarded. Similarly, the use of an annotation may not be an indication of the quality of the response. The annotations listed below were available to examiners marking this component in this series. Annotations Annotation Meaning Correct point. Incorrect point. Used when the benefit of the doubt is given in order to reward a response. Used when parts of the answer are considered to be too vague to be given credit. Indicates where content has been repeated. Used when the answer or parts of the answer do not answer the question asked. Indicates appropriate reference to the information in the stem. If a mistake is made in a calculation, and the incorrect figure that results from the mistake is used for subsequent calculations. Indicates that the page or content has been seen by examiner, but no credit given. Level 1 – Used in part (b) questions to indicate where a response includes limited knowledge and/or understanding. Level 2 – Used in part (b) questions to indicate where a response has a more detailed discussion and contains some evidence of justification. Level 3 – Used in part (b) questions to indicate where a response includes a well - justified recommendation. © Cambridge University Press & Assessment 2025 Page 5 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2025
Annotations guidance for centres
Examiners use a system of annotations as a shorthand for communicating their marking decisions to
one another. Examiners are trained during the standardisation process on how and when to use
annotations. The purpose of annotations is to inform the standard isation and monitoring processes
and guide the supervising examiners when they are checking the work of examiners within their team.
The meaning of annotations and how they are used is specific to each component and is understood
by all examiners who mark the component.
We publish annotations in our mark schemes to help centres understand the annotations they may
see on copies of scripts. Note that there may not be a direct correlation between the number of
annotations on a script and the mark awarded. Similarly, the use of an annotation may not be an
indication of the quality of the response.
The annotations listed below were available to examiners marking this component in this series.
Annotations
Annotation Meaning
Correct point.
Incorrect point.
Used when the benefit of the doubt is given in order to reward a response.
Used when parts of the answer are considered to be too vague to be given
credit.
Indicates where content has been repeated.
Used when the answer or parts of the answer do not answer the question
asked.
Indicates appropriate reference to the information in the stem.
If a mistake is made in a calculation, and the incorrect figure that results
from the mistake is used for subsequent calculations.
Indicates that the page or content has been seen by examiner, but no
credit given.
Level 1 – Used in part (b) questions to indicate where a response includes
limited knowledge and/or understanding.
Level 2 – Used in part (b) questions to indicate where a response has a
more detailed discussion and contains some evidence of justification.
Level 3 – Used in part (b) questions to indicate where a response includes
a well - justified recommendation.
© Cambridge University Press & Assessment 2025 Page 5 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November PUBLISHED 2025 Question Answer Marks 1 ( a ) Explain four ways a business plan could help Kathryn. 8 Award 1 mark for each relevant way (max 4). Award 1 additional mark for each explanation of the way applied to this context. Relevant ways might include: • To help gain a bank loan/overdraft – to open the new shop • To help give the business a sense of purpose and direction – selling wedding flowers • To calculate the costs of setting up the business – in this niche market • To predict cash flow problems – when deciding the source of finance for working capital • To help identify if there is sufficient demand for the product • To help set prices – for the high - quality products • To help identify the skills / type of employees needed – to prepare the flowers • To help choose the promotional methods to use • To help allocate resources For example: To help with an application for a bank loan (1) in order to open the new flower shop (app). Application could include: new shop/third shop; 2 shops; flowers; source of finance required for working capital; weddings; bride/groom; ribbons; reputation for high quality; contribute to sustainable development; targets a niche market; 4/8 employees at each shop; b ride; average price paid is $2000; supplies purchased each day; supplies are fresh; uses job production; small business; marketing mix for the new shop. © Cambridge University Press & Assessment 2025 Page 6 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2025
Question Answer Marks
1 ( a ) Explain four ways a business plan could help Kathryn. 8
Award 1 mark for each relevant way (max 4).
Award 1 additional mark for each explanation of the way applied to this
context.
Relevant ways might include:
• To help gain a bank loan/overdraft – to open the new shop
• To help give the business a sense of purpose and direction – selling
wedding flowers
• To calculate the costs of setting up the business – in this niche market
• To predict cash flow problems – when deciding the source of finance for
working capital
• To help identify if there is sufficient demand for the product
• To help set prices – for the high - quality products
• To help identify the skills / type of employees needed – to prepare the
flowers
• To help choose the promotional methods to use
• To help allocate resources
For example: To help with an application for a bank loan (1) in order to open
the new flower shop (app).
Application could include: new shop/third shop; 2 shops; flowers; source of
finance required for working capital; weddings; bride/groom; ribbons;
reputation for high quality; contribute to sustainable development; targets a
niche market; 4/8 employees at each shop; b ride; average price paid is
$2000; supplies purchased each day; supplies are fresh; uses job production;
small business; marketing mix for the new shop.
© Cambridge University Press & Assessment 2025 Page 6 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November PUBLISHED 2025 Question Answer Marks 1 ( b ) Consider the following two methods Kathryn could use to communicate 12 with her suppliers. Which method should Kathryn use if an order is needed quickly? Justify your answer . • Telephone calls • Emails Level Description Marks 3 Sound application of knowledge and understanding of 9 – 12 relevant business concepts using appropriate terminology. Detailed discussion of both methods. Well - justified recommendation. Candidates discussing both methods, in context and with a well - justified recommendation , including why the alternative method was rejected , should be rewarded with the top marks in the band. 2 Sound application of knowledge and understanding of 5 – 8 relevant business concepts using appropriate terminology. Detailed discussion of at least one method. Judgement with some justification / some evaluation of choice made. Candidates discussing at least one method in detail and applying it to the case should be rewarded with the top marks in the band. 1 Limited application of knowledge and understanding of 1 – 4 relevant business concepts. Limited ability to discuss the methods with little/no explanation. Simple judgement with limited justification / limited evaluation of choice made. Candidates outlining both methods in context should be rewarded with the top marks in the band. 0 No creditable response. 0 © Cambridge University Press & Assessment 2025 Page 7 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2025
Question Answer Marks
1 ( b ) Consider the following two methods Kathryn could use to communicate 12
with her suppliers. Which method should Kathryn use if an order is
needed quickly? Justify your answer .
• Telephone calls
• Emails
Level Description Marks
3 Sound application of knowledge and understanding of 9 – 12
relevant business concepts using appropriate terminology.
Detailed discussion of both methods.
Well - justified recommendation.
Candidates discussing both methods, in context and with a
well - justified recommendation , including why the alternative
method was rejected , should be rewarded with the top
marks in the band.
2 Sound application of knowledge and understanding of 5 – 8
relevant business concepts using appropriate terminology.
Detailed discussion of at least one method.
Judgement with some justification / some evaluation of
choice made.
Candidates discussing at least one method in detail and
applying it to the case should be rewarded with the top
marks in the band.
1 Limited application of knowledge and understanding of 1 – 4
relevant business concepts.
Limited ability to discuss the methods with little/no
explanation.
Simple judgement with limited justification / limited
evaluation of choice made.
Candidates outlining both methods in context should be
rewarded with the top marks in the band.
0 No creditable response. 0
© Cambridge University Press & Assessment 2025 Page 7 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November PUBLISHED 2025 Question Answer Marks 1(b) Relevant points might include: Advantages Disadvantages Telephone calls • Speaks directly to each • Suppliers may not supplier of ribbons – answer – delay in gets immediate order being taken – feedback – so knows the delivery of flowers message has been may be delayed – received which slows • Can verify if the production and may message for the order be late being of fresh flowers is delivered to a understood – answer wedding questions about the • Poor connection orders – to ensure the over the network correct flowers are used – may distort delivered – possibly the message and meeting customer make it difficult to orders more quickly understand – • Know the message has resulting in wrong been received – with order being made – having a good which may lead to relationship with the under or over supplier which means ordered flowers they will answer and • Could take a long take the order time to call suppliers – may not answer straight away and may need to call several times taking time that could be used for something else • No permanent record of the conversation – if an incorrect order is made there is no proof the supplier made a mistake © Cambridge University Press & Assessment 2025 Page 8 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2025
Question Answer Marks
1(b) Relevant points might include:
Advantages Disadvantages
Telephone calls • Speaks directly to each • Suppliers may not
supplier of ribbons – answer – delay in
gets immediate order being taken –
feedback – so knows the delivery of flowers
message has been may be delayed –
received which slows
• Can verify if the production and may
message for the order be late being
of fresh flowers is delivered to a
understood – answer wedding
questions about the • Poor connection
orders – to ensure the over the network
correct flowers are used – may distort
delivered – possibly the message and
meeting customer make it difficult to
orders more quickly understand –
• Know the message has resulting in wrong
been received – with order being made –
having a good which may lead to
relationship with the under or over
supplier which means ordered flowers
they will answer and • Could take a long
take the order time to call
suppliers – may not
answer straight
away and may
need to call several
times taking time
that could be used
for something else
• No permanent
record of the
conversation – if an
incorrect order is
made there is no
proof the supplier
made a mistake
© Cambridge University Press & Assessment 2025 Page 8 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November PUBLISHED 2025 Question Answer Marks 1(b) Advantages Disadvantages Emails • Provides a written • Some suppliers record for FF to refer to may not have – if the suppliers do not access to a reliable meet the order correctly internet connection and the wrong flowers – so FF may not are delivered know the order for • Can be referred to at ribbons has not different times to check been received on the amount of • The order may not perishable supplies be seen if there are ordered to ensure the too many emails to correct order is delivered read and get lost or on the correct date missed • Kathryn does not have • May go into junk – to be in the office to so supplier of send the order – can be packaging is sent out of usual office unaware there is an hours – may be more order convenient especially as FF is a small business Recommendation Justification might include: • A telephone call should be made if the order for ribbons is needed quickly to ensure the message is received. Feedback can clarify that the correct order has been made. An email may get lost amongst many emails and the urgency may not be realised, therefor e making the order late being processed and delivery of the flower arrangements for the wedding being delayed. • An email should be used as it is sent straight away, and the supplier of fresh flowers can reply letting FF know that the order has been received and if it can be dispatched straight away. © Cambridge University Press & Assessment 2025 Page 9 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2025
Question Answer Marks
1(b)
Advantages Disadvantages
Emails • Provides a written • Some suppliers
record for FF to refer to may not have
– if the suppliers do not access to a reliable
meet the order correctly internet connection
and the wrong flowers – so FF may not
are delivered know the order for
• Can be referred to at ribbons has not
different times to check been received
on the amount of • The order may not
perishable supplies be seen if there are
ordered to ensure the too many emails to
correct order is delivered read and get lost or
on the correct date missed
• Kathryn does not have • May go into junk –
to be in the office to so supplier of
send the order – can be packaging is
sent out of usual office unaware there is an
hours – may be more order
convenient especially as
FF is a small business
Recommendation Justification might include:
• A telephone call should be made if the order for
ribbons is needed quickly to ensure the message is
received. Feedback can clarify that the correct
order has been made. An email may get lost
amongst many emails and the urgency may not be
realised, therefor e making the order late being
processed and delivery of the flower arrangements
for the wedding being delayed.
• An email should be used as it is sent straight away,
and the supplier of fresh flowers can reply letting
FF know that the order has been received and if it
can be dispatched straight away.
© Cambridge University Press & Assessment 2025 Page 9 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November PUBLISHED 2025 Question Answer Marks 2 ( a ) Explain two benefits and two limitations of a business operating in a 8 niche market. Award 1 mark for each benefit/limitation (max 2 benefits/2 max limitations). Award a maximum of 1 additional mark for each explanation of the benefit/limitation. There are no application marks for this question. Relevant benefits might include: • Fewer businesses may be competitors in this part of the market – less need to spend on marketing the product • The needs of the consumer can be more closely focused on – therefore their needs will be met giving high consumer satisfaction • Increased sales and revenue as product meets customer needs • Higher price can be charged – as product may be seen as high - status or exclusive • Increased customer loyalty Relevant limitations might include: • Niche markets are usually relatively small – therefore sales are likely to be smaller than in a mass market • Limits potential growth in the market – profits may be limited in the future • May mean the business specialises in one product – increased risk if the product has a fall in demand • Small size of the market means that economies of scale are unlikely – resulting in higher unit costs • High profits may attract competitors into the market – prices may have to be reduced For example: The business can focus more closely on customer needs (1) therefore their needs will be met giving high consumer satisfaction (1). © Cambridge University Press & Assessment 2025 Page 10 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2025
Question Answer Marks
2 ( a ) Explain two benefits and two limitations of a business operating in a 8
niche market.
Award 1 mark for each benefit/limitation (max 2 benefits/2 max limitations).
Award a maximum of 1 additional mark for each explanation of the
benefit/limitation.
There are no application marks for this question.
Relevant benefits might include:
• Fewer businesses may be competitors in this part of the market – less
need to spend on marketing the product
• The needs of the consumer can be more closely focused on – therefore
their needs will be met giving high consumer satisfaction
• Increased sales and revenue as product meets customer needs
• Higher price can be charged – as product may be seen as high - status or
exclusive
• Increased customer loyalty
Relevant limitations might include:
• Niche markets are usually relatively small – therefore sales are likely to
be smaller than in a mass market
• Limits potential growth in the market – profits may be limited in the future
• May mean the business specialises in one product – increased risk if the
product has a fall in demand
• Small size of the market means that economies of scale are unlikely –
resulting in higher unit costs
• High profits may attract competitors into the market – prices may have to
be reduced
For example: The business can focus more closely on customer needs (1)
therefore their needs will be met giving high consumer satisfaction (1).
© Cambridge University Press & Assessment 2025 Page 10 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November PUBLISHED 2025 Question Answer Marks 2 ( b ) Using Appendix 2 and other information, consider the following three 12 elements of the possible marketing mix for FF’s new shop. Which element is likely to be the most important? Justify your answer. • Price – cost - plus pricing • Place – selling some flowers through wedding planners • Promotion – television advertising Level Description Marks 3 Sound application of knowledge and understanding of 9 – 12 relevant business concepts using appropriate terminology. Detailed discussion of two or more elements. Well - justified conclusion. Candidates discussing all three elements, in context and with a well - justified conclusion , including why the alternative elements were rejected , should be rewarded with the top marks in the band. 2 Sound application of knowledge and understanding of 5 – 8 relevant business concepts using appropriate terminology. Detailed discussion of at least one element. Judgement with some justification / some evaluation of choice made. Candidates discussing two or more elements in detail and applying these to the case should be rewarded with the top marks in the band. 1 Limited application of knowledge and understanding of 1 – 4 relevant business concepts. Limited ability to discuss the elements with little/no explanation. Simple judgement with limited justification / limited evaluation of choice made. Candidates outlining the three elements in context should be rewarded with the top marks in the band. 0 No creditable response. 0 © Cambridge University Press & Assessment 2025 Page 11 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2025
Question Answer Marks
2 ( b ) Using Appendix 2 and other information, consider the following three 12
elements of the possible marketing mix for FF’s new shop. Which
element is likely to be the most important? Justify your answer.
• Price – cost - plus pricing
• Place – selling some flowers through wedding planners
• Promotion – television advertising
Level Description Marks
3 Sound application of knowledge and understanding of 9 – 12
relevant business concepts using appropriate terminology.
Detailed discussion of two or more elements.
Well - justified conclusion.
Candidates discussing all three elements, in context and
with a well - justified conclusion , including why the alternative
elements were rejected , should be rewarded with the top
marks in the band.
2 Sound application of knowledge and understanding of 5 – 8
relevant business concepts using appropriate terminology.
Detailed discussion of at least one element.
Judgement with some justification / some evaluation of
choice made.
Candidates discussing two or more elements in detail and
applying these to the case should be rewarded with the top
marks in the band.
1 Limited application of knowledge and understanding of 1 – 4
relevant business concepts.
Limited ability to discuss the elements with little/no
explanation.
Simple judgement with limited justification / limited
evaluation of choice made.
Candidates outlining the three elements in context should
be rewarded with the top marks in the band.
0 No creditable response. 0
© Cambridge University Press & Assessment 2025 Page 11 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November PUBLISHED 2025 Question Answer Marks 2(b) Relevant points might include: Advantages Disadvantages Price – cost - • Method is relatively easy • Need to calculate total plus pricing to apply costs to be able to • Different mark - ups can be calculate the price to applied for different brides charge for wedding depending on the type of flowers – may take flowers used in the time to collect the arrangement figures and may not • Each product sold can be accurate if difficult earn a higher profit for the to calculate the business – as it can proportion of fixed closely meet the costs per product requirements of the • Price may be higher individual customer in this than price of niche market – and competitors’ – charge a higher price for reducing sales and the flower arrangement revenue • Profit overall is only made if sufficient sales are made to cover fixed costs as well as the variable costs • There is no incentive to reduce costs – as any increase in costs will be passed on to the customer © Cambridge University Press & Assessment 2025 Page 12 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2025
Question Answer Marks
2(b) Relevant points might include:
Advantages Disadvantages
Price – cost - • Method is relatively easy • Need to calculate total
plus pricing to apply costs to be able to
• Different mark - ups can be calculate the price to
applied for different brides charge for wedding
depending on the type of flowers – may take
flowers used in the time to collect the
arrangement figures and may not
• Each product sold can be accurate if difficult
earn a higher profit for the to calculate the
business – as it can proportion of fixed
closely meet the costs per product
requirements of the • Price may be higher
individual customer in this than price of
niche market – and competitors’ –
charge a higher price for reducing sales and
the flower arrangement revenue
• Profit overall is only
made if sufficient
sales are made to
cover fixed costs as
well as the variable
costs
• There is no incentive
to reduce costs – as
any increase in costs
will be passed on to
the customer
© Cambridge University Press & Assessment 2025 Page 12 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November PUBLISHED 2025 Question Answer Marks 2(b) Advantages Disadvantages Place – • May have a larger market • Part of the profit kept selling some as now also sell to by the wedding flowers businesses that plan planner – as through weddings for customers – discounts will be wedding may have higher revenue required by the planners from sales of wedding wedding planner – flowers lower return for • All storage costs paid by Kathryn on her the wedding planner – investment in her may reduce costs for FF – small business flowers are perishable • Slower way to get the and may need specialist flower arrangements equipment to keep the to the customer – high quality of the flowers wedding flowers may • Promotional activities are lose quality as not as carried out and paid for by fresh when stored for the wedding planner longer periods of time • Does not have complete control over the way the business is marketed – cannot display flower arrangements in the way chosen by Kathryn • May be higher price as includes the wedding planner’s profit – may be less competitive © Cambridge University Press & Assessment 2025 Page 13 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2025
Question Answer Marks
2(b)
Advantages Disadvantages
Place – • May have a larger market • Part of the profit kept
selling some as now also sell to by the wedding
flowers businesses that plan planner – as
through weddings for customers – discounts will be
wedding may have higher revenue required by the
planners from sales of wedding wedding planner –
flowers lower return for
• All storage costs paid by Kathryn on her
the wedding planner – investment in her
may reduce costs for FF – small business
flowers are perishable • Slower way to get the
and may need specialist flower arrangements
equipment to keep the to the customer –
high quality of the flowers wedding flowers may
• Promotional activities are lose quality as not as
carried out and paid for by fresh when stored for
the wedding planner longer periods of time
• Does not have
complete control over
the way the business
is marketed – cannot
display flower
arrangements in the
way chosen by
Kathryn
• May be higher price
as includes the
wedding planner’s
profit – may be less
competitive
© Cambridge University Press & Assessment 2025 Page 13 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November PUBLISHED 2025 Question Answer Marks 2(b) Advantages Disadvantages Promotion – • The advert will be seen by • Can be very television a large audience – expensive – advertising potentially increases the increasing costs for target market – increasing FF sales and revenue • FF may not be able to • The wedding flowers and afford many adverts – arrangements can be so reducing their shown in a very effectiveness as not favourable way – with on television very happy brides holding their often flowers – moving images • Young consumers can convey the mood of who are getting high - quality products and married may not enjoyable celebrations – watch television very increasing sales often as more likely to • May encourage customers use social media – to visit the shop when they reducing effectiveness might not otherwise be of advertising and aware of the shop reducing potential • Can target adverts to be sales shown during TV shows that the target market may be watching – such as bridal/wedding programmes Conclusion Justification might include: • Cost - plus pricing will be the most important element of the marketing mix as it will allow different mark - ups for different flower arrangements for high income customers who are getting married leading to higher revenue and possibly more profit. Selling to wedding planners may reduce the high - quality of the flowers as it may take longer to get to the customer, reducing customer satisfaction and television advertising may be limited given the larg e budget needed to have a television campaign. • Selling to wedding planners will allow Kathryn to increase the number of customers for her flowers to use in arrangements and flower arrangements for weddings – this may give word - of - mouth advertising – leading to higher sales from the shop. • Advertising on television may mean that customers from across the city are likely to see the adverts and visit the shop – leading to higher sales of wedding flowers. © Cambridge University Press & Assessment 2025 Page 14 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2025
Question Answer Marks
2(b)
Advantages Disadvantages
Promotion – • The advert will be seen by • Can be very
television a large audience – expensive –
advertising potentially increases the increasing costs for
target market – increasing FF
sales and revenue • FF may not be able to
• The wedding flowers and afford many adverts –
arrangements can be so reducing their
shown in a very effectiveness as not
favourable way – with on television very
happy brides holding their often
flowers – moving images • Young consumers
can convey the mood of who are getting
high - quality products and married may not
enjoyable celebrations – watch television very
increasing sales often as more likely to
• May encourage customers use social media –
to visit the shop when they reducing effectiveness
might not otherwise be of advertising and
aware of the shop reducing potential
• Can target adverts to be sales
shown during TV shows
that the target market may
be watching – such as
bridal/wedding
programmes
Conclusion Justification might include:
• Cost - plus pricing will be the most important element of
the marketing mix as it will allow different mark - ups for
different flower arrangements for high income
customers who are getting married leading to higher
revenue and possibly more profit. Selling to wedding
planners may reduce the high - quality of the flowers as
it may take longer to get to the customer, reducing
customer satisfaction and television advertising may be
limited given the larg e budget needed to have a
television campaign.
• Selling to wedding planners will allow Kathryn to
increase the number of customers for her flowers to
use in arrangements and flower arrangements for
weddings – this may give word - of - mouth advertising –
leading to higher sales from the shop.
• Advertising on television may mean that customers
from across the city are likely to see the adverts and
visit the shop – leading to higher sales of wedding
flowers.
© Cambridge University Press & Assessment 2025 Page 14 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November PUBLISHED 2025 Question Answer Marks 3 ( a ) Explain two reasons why FF uses job production. 8 Award 1 mark for reason why FF uses job production (max 2). Award a maximum of 3 additional marks for each explanation of why FF uses job production – one of which must be applied to this context . Reasons might include: • Is suitable for individual/unique products – makes them more competitive – leading to higher revenue/sales • Meets the exact needs of customers – so increases customer satisfaction – increases reputation and word of mouth advertising • The employees have more varied jobs – as may carry out all the tasks to produce the product – increasing employee motivation • A higher price can be charged – as the product is a ‘one - off’ for the customer – willing to pay a higher price for a product that is exactly what they want • Production can be of a higher quality – because each product is individually made For example: The flower shop will produce wedding flower arrangements (app) that are specially designed for customers (1) and more closely meets the exact needs of these customers (1) so is more likely to increase customer recommendations (1). Application could include: new shop/third shop; 2 shops; flowers; source of finance required for working capital; weddings; bride/groom; ribbons; reputation for high quality; contribute to sustainable development; targets a niche market; 4/8 employees at each shop; b ride; average price paid is $2000; supplies purchased each day; supplies are fresh; small business; marketing mix for the new shop; social media reviews. © Cambridge University Press & Assessment 2025 Page 15 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2025
Question Answer Marks
3 ( a ) Explain two reasons why FF uses job production. 8
Award 1 mark for reason why FF uses job production (max 2).
Award a maximum of 3 additional marks for each explanation of why FF uses
job production – one of which must be applied to this context .
Reasons might include:
• Is suitable for individual/unique products – makes them more competitive
– leading to higher revenue/sales
• Meets the exact needs of customers – so increases customer satisfaction
– increases reputation and word of mouth advertising
• The employees have more varied jobs – as may carry out all the tasks to
produce the product – increasing employee motivation
• A higher price can be charged – as the product is a ‘one - off’ for the
customer – willing to pay a higher price for a product that is exactly what
they want
• Production can be of a higher quality – because each product is
individually made
For example: The flower shop will produce wedding flower arrangements
(app) that are specially designed for customers (1) and more closely meets
the exact needs of these customers (1) so is more likely to increase customer
recommendations (1).
Application could include: new shop/third shop; 2 shops; flowers; source of
finance required for working capital; weddings; bride/groom; ribbons;
reputation for high quality; contribute to sustainable development; targets a
niche market; 4/8 employees at each shop; b ride; average price paid is
$2000; supplies purchased each day; supplies are fresh; small business;
marketing mix for the new shop; social media reviews.
© Cambridge University Press & Assessment 2025 Page 15 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November PUBLISHED 2025 Question Answer Marks 3 ( b ) Consider the following two sources of finance which could be used for 12 working capital when FF’s new shop opens. Which would be the best source for Kathryn to use? Justify your answer. • Bank overdraft • Trade credit Level Description Marks 3 Sound application of knowledge and understanding of 9 – 12 relevant business concepts using appropriate terminology. Detailed discussion of both sources of finance. Well - justified recommendation. Candidates discussing in detail both sources of finance, in context and with a well - justified recommendation , including why the alternative source is rejected , should be rewarded with the top marks in the band. 2 Sound application of knowledge and understanding of 5 – 8 relevant business concepts using appropriate terminology. Detailed discussion of one or more sources of finance. Judgement with some justification / some evaluation of choice made. Candidates discussing both sources of finance in detail and applying them to the case should be rewarded with the top marks in the band. 1 Limited application of knowledge and understanding of 1 – 4 relevant business concepts. Limited ability to discuss the sources of finance with little/no explanation. Simple judgement with limited justification / limited evaluation of choice made. Candidates outlining both sources of finance in context should be rewarded with the top marks in the band. 0 No creditable response. 0 © Cambridge University Press & Assessment 2025 Page 16 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2025
Question Answer Marks
3 ( b ) Consider the following two sources of finance which could be used for 12
working capital when FF’s new shop opens. Which would be the best
source for Kathryn to use? Justify your answer.
• Bank overdraft
• Trade credit
Level Description Marks
3 Sound application of knowledge and understanding of 9 – 12
relevant business concepts using appropriate terminology.
Detailed discussion of both sources of finance.
Well - justified recommendation.
Candidates discussing in detail both sources of finance, in
context and with a well - justified recommendation , including
why the alternative source is rejected , should be rewarded
with the top marks in the band.
2 Sound application of knowledge and understanding of 5 – 8
relevant business concepts using appropriate terminology.
Detailed discussion of one or more sources of finance.
Judgement with some justification / some evaluation of
choice made.
Candidates discussing both sources of finance in detail and
applying them to the case should be rewarded with the top
marks in the band.
1 Limited application of knowledge and understanding of 1 – 4
relevant business concepts.
Limited ability to discuss the sources of finance with little/no
explanation.
Simple judgement with limited justification / limited
evaluation of choice made.
Candidates outlining both sources of finance in context
should be rewarded with the top marks in the band.
0 No creditable response. 0
© Cambridge University Press & Assessment 2025 Page 16 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November PUBLISHED 2025 Question Answer Marks 3(b) Relevant points might include: Advantages Disadvantages Bank overdraft • Can be quick to • Amount overdrawn will arrange – so finance have to be repaid with available straight interest – increases away expenses – may lead • May be arranged for to higher prices for varying lengths of flower arrangements time for repayment – charged or reduced longer time to pay it profits back from the sale of • May need to provide wedding flowers – collateral – may lose helping to avoid a assets if overdraft cash flow problem cannot be repaid • May have to pay a high interest rate due to it being a small business and may be seen as high risk – raises costs further • Interest rate may be variable so if interest rates increase later FF will be affected – increased risks for FF © Cambridge University Press & Assessment 2025 Page 17 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2025
Question Answer Marks
3(b) Relevant points might include:
Advantages Disadvantages
Bank overdraft • Can be quick to • Amount overdrawn will
arrange – so finance have to be repaid with
available straight interest – increases
away expenses – may lead
• May be arranged for to higher prices for
varying lengths of flower arrangements
time for repayment – charged or reduced
longer time to pay it profits
back from the sale of • May need to provide
wedding flowers – collateral – may lose
helping to avoid a assets if overdraft
cash flow problem cannot be repaid
• May have to pay a
high interest rate due
to it being a small
business and may be
seen as high risk –
raises costs further
• Interest rate may be
variable so if interest
rates increase later FF
will be affected –
increased risks for FF
© Cambridge University Press & Assessment 2025 Page 17 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November PUBLISHED 2025 Question Answer Marks 3(b) Advantages Disadvantages Trade credit • Is effectively an • Supplier may refuse to interest - free loan – supply if payment is unless penalties for not made as agreed – late payment are may damage the made relationship with • May be able to supplier – unable to receive revenue from meet orders spoiling sales of flowers FF’s good reputation before paying • Supplier may refuse to supplier as has a offer discounts for the good relationship flowers at all if with her supplier – payment is not made improves cash flow as agreed – may increase costs – which could lead to higher prices as FF may use cost - plus pricing Recommendation Justification might include: • A bank overdraft is the best source of finance to use as a sufficient amount of capital may be arranged which will pay for all the operating costs for the new flower shop . Some suppliers may not be willing to provide FF with trade credit leaving them short of working capital. • Trade credit is the best source of finance to use as FF can use it to purchase the flowers and then sell them to receive the revenue before payment is due. This is an interest free source of finance for the day - to - day running of the third shop. © Cambridge University Press & Assessment 2025 Page 18 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2025
Question Answer Marks
3(b)
Advantages Disadvantages
Trade credit • Is effectively an • Supplier may refuse to
interest - free loan – supply if payment is
unless penalties for not made as agreed –
late payment are may damage the
made relationship with
• May be able to supplier – unable to
receive revenue from meet orders spoiling
sales of flowers FF’s good reputation
before paying • Supplier may refuse to
supplier as has a offer discounts for the
good relationship flowers at all if
with her supplier – payment is not made
improves cash flow as agreed – may
increase costs – which
could lead to higher
prices as FF may use
cost - plus pricing
Recommendation Justification might include:
• A bank overdraft is the best source of finance to
use as a sufficient amount of capital may be
arranged which will pay for all the operating costs
for the new flower shop . Some suppliers may not
be willing to provide FF with trade credit leaving
them short of working capital.
• Trade credit is the best source of finance to use as
FF can use it to purchase the flowers and then sell
them to receive the revenue before payment is
due. This is an interest free source of finance for
the day - to - day running of the third shop.
© Cambridge University Press & Assessment 2025 Page 18 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November PUBLISHED 2025 Question Answer Marks 4 ( a ) Explain two reasons why high quality is important for FF 8 Award 1 mark for each reason (max 2). Award a maximum of 3 additional marks for each explanation of the reason why high quality is important – one of which must be applied to this context . Reasons might include: • To establish a brand image – so that customers are encouraged to buy the product – new customers are attracted • To maintain a good reputation / to not gain a bad reputation – friends and family tell others about the goods/service which may lead to a good/bad reputation – increasing/decreasing sales • To increase sales / attract more customers – due to customer needs being satisfied by the products supplied • So that faulty products do not have to be replaced – which would reduce waste / ensures customer safety / avoids legal action • Able to charge a high price – may lead to higher profit margin / as may increase added value For example: To maintain a good reputation (1) because if quality is not good then friends and family will tell others about the product which ma y lead to a bad reputation (1) and sales will be lower (1) for the new flower shop (app). Application could include: new shop/third shop; 2 shops; flowers; source of finance required for working capital; weddings; bride/groom; ribbons; contribute to sustainable development; targets a niche market; 4/8 employees at each shop; bride; average price paid is $ 2000; supplies purchased each day; supplies are fresh; uses job production; small business; marketing mix for the new shop; social media reviews. © Cambridge University Press & Assessment 2025 Page 19 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2025
Question Answer Marks
4 ( a ) Explain two reasons why high quality is important for FF 8
Award 1 mark for each reason (max 2).
Award a maximum of 3 additional marks for each explanation of the reason
why high quality is important – one of which must be applied to this context .
Reasons might include:
• To establish a brand image – so that customers are encouraged to buy
the product – new customers are attracted
• To maintain a good reputation / to not gain a bad reputation – friends and
family tell others about the goods/service which may lead to a good/bad
reputation – increasing/decreasing sales
• To increase sales / attract more customers – due to customer needs
being satisfied by the products supplied
• So that faulty products do not have to be replaced – which would reduce
waste / ensures customer safety / avoids legal action
• Able to charge a high price – may lead to higher profit margin / as may
increase added value
For example: To maintain a good reputation (1) because if quality is not good
then friends and family will tell others about the product which ma y lead to a
bad reputation (1) and sales will be lower (1) for the new flower shop (app).
Application could include: new shop/third shop; 2 shops; flowers; source of
finance required for working capital; weddings; bride/groom; ribbons;
contribute to sustainable development; targets a niche market; 4/8 employees
at each shop; bride; average price paid is $ 2000; supplies purchased each
day; supplies are fresh; uses job production; small business; marketing mix
for the new shop; social media reviews.
© Cambridge University Press & Assessment 2025 Page 19 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November PUBLISHED 2025 Question Answer Marks 4 ( b ) Using Appendix 3 and other information, consider the following two 12 ways FF could contribute to sustainable development. Which way should Kathryn choose? Justify your answer. • Buying all flowers from sustainable sources • Using electricity from renewable sources Level Description Marks 3 Sound application of knowledge and understanding of 9 – 12 relevant business concepts using appropriate terminology. Detailed discussion of both ways. Well - justified recommendation. Candidates discussing two ways in detail, in context and with a well - justified r ecommendation , including why the alternative way was rejected , should be rewarded with the top marks in the band. 2 Sound application of knowledge and understanding of 5 – 8 relevant business concepts using appropriate terminology. Detailed discussion of at least one way. Judgement with some justification / some evaluation of choices made. Candidates discussing one way in detail and applying it to the case should be rewarded with the top marks in the band. 1 Limited application of knowledge and understanding of 1 – 4 relevant business concepts. Limited ability to discuss the ways with little/no explanation. Simple judgement with limited justification / limited evaluation of choices made. Candidates outlining the two ways in context should be rewarded with the top marks in the band. 0 No creditable response. 0 © Cambridge University Press & Assessment 2025 Page 20 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2025
Question Answer Marks
4 ( b ) Using Appendix 3 and other information, consider the following two 12
ways FF could contribute to sustainable development. Which way
should Kathryn choose? Justify your answer.
• Buying all flowers from sustainable sources
• Using electricity from renewable sources
Level Description Marks
3 Sound application of knowledge and understanding of 9 – 12
relevant business concepts using appropriate terminology.
Detailed discussion of both ways.
Well - justified recommendation.
Candidates discussing two ways in detail, in context and
with a well - justified r ecommendation , including why the
alternative way was rejected , should be rewarded with the
top marks in the band.
2 Sound application of knowledge and understanding of 5 – 8
relevant business concepts using appropriate terminology.
Detailed discussion of at least one way.
Judgement with some justification / some evaluation of
choices made.
Candidates discussing one way in detail and applying it to
the case should be rewarded with the top marks in the
band.
1 Limited application of knowledge and understanding of 1 – 4
relevant business concepts.
Limited ability to discuss the ways with little/no explanation.
Simple judgement with limited justification / limited
evaluation of choices made.
Candidates outlining the two ways in context should be
rewarded with the top marks in the band.
0 No creditable response. 0
© Cambridge University Press & Assessment 2025 Page 20 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November PUBLISHED 2025 Question Answer Marks 4(b) Relevant points might include: Advantages Disadvantages Buying all flowers • Attract customers who • The average price from sustainable are concerned about on wedding flowers sources the environment if it is is $2000 and included in the customers may not advertising – be willing to pay increasing sales more for sustainably • In the future produced flowers – sustainable sources so prices remain the will still be supplying same and profit flowers – more secure margins may need source of supply to be lower • Sustainable sources • Costs increase by are nearby in Main City 25% for flowers for which is good for the each average environment – as wedding flowers – if transport costs are prices are raised lower and less then may make FF polluting less competitive – losing sales © Cambridge University Press & Assessment 2025 Page 21 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2025
Question Answer Marks
4(b) Relevant points might include:
Advantages Disadvantages
Buying all flowers • Attract customers who • The average price
from sustainable are concerned about on wedding flowers
sources the environment if it is is $2000 and
included in the customers may not
advertising – be willing to pay
increasing sales more for sustainably
• In the future produced flowers –
sustainable sources so prices remain the
will still be supplying same and profit
flowers – more secure margins may need
source of supply to be lower
• Sustainable sources • Costs increase by
are nearby in Main City 25% for flowers for
which is good for the each average
environment – as wedding flowers – if
transport costs are prices are raised
lower and less then may make FF
polluting less competitive –
losing sales
© Cambridge University Press & Assessment 2025 Page 21 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November PUBLISHED 2025 Question Answer Marks 4(b) Advantages Disadvantages Using electricity • Savings of electricity • High cost to install from renewable after solar panels the solar panels – sources bought – $100 per costs $6000 for week saving on each shop electricity for each • $18 000 if all 3 shop shops have solar • $5200 per year panels savings for each shop / • May need to take $15 600 per year for all out a loan – interest 3 shops costs will increase – • These cost savings will will increase cash continue into the future outflow – after the installation • Relies on amount of costs are repaid sunlight each day – • May be able to reduce may be lower at prices as costs of different times of power are reduced – the year / difficult to become more store the electricity competitive • Maintenance cost for the solar panels Recommendation Justification may include: • Kathryn should buy all FF’s flowers from sustainable sources as FF may attract many more customers who are concerned about the environment , and they may be willing to pay a higher price if 25% increased cost of the flowers is passed on to customers. Purchasing solar panels may require taking out a bank loan and this will increase expenses which FF may not be able to afford given FF is opening a new shop and already has to find ways to finance its working capital. • Kathryn should use renewable energy to provide electricity for FF’s shops. This is an investment that will continue to save $300 each week for the 3 shops in the future and may help to make FF more competitive © Cambridge University Press & Assessment 2025 Page 22 of 22

0450 / 22 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2025
Question Answer Marks
4(b)
Advantages Disadvantages
Using electricity • Savings of electricity • High cost to install
from renewable after solar panels the solar panels –
sources bought – $100 per costs $6000 for
week saving on each shop
electricity for each • $18 000 if all 3
shop shops have solar
• $5200 per year panels
savings for each shop / • May need to take
$15 600 per year for all out a loan – interest
3 shops costs will increase –
• These cost savings will will increase cash
continue into the future outflow
– after the installation • Relies on amount of
costs are repaid sunlight each day –
• May be able to reduce may be lower at
prices as costs of different times of
power are reduced – the year / difficult to
become more store the electricity
competitive • Maintenance cost
for the solar panels
Recommendation Justification may include:
• Kathryn should buy all FF’s flowers from
sustainable sources as FF may attract many more
customers who are concerned about the
environment , and they may be willing to pay a
higher price if 25% increased cost of the flowers is
passed on to customers. Purchasing solar panels
may require taking out a bank loan and this will
increase expenses which FF may not be able to
afford given FF is opening a new shop and
already has to find ways to finance its working
capital.
• Kathryn should use renewable energy to provide
electricity for FF’s shops. This is an investment
that will continue to save $300 each week for the
3 shops in the future and may help to make FF
more competitive
© Cambridge University Press & Assessment 2025 Page 22 of 22

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