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IGCSE Business Studies 0450 · Understanding business activity · 8

0450.1.3.3.01 — Different ways in which businesses can grow, e.g. internal/external: past paper questions

26 real questionsasked in 7 of the last 10 exam series2019–2026usually: Explain, Justify, Identify, Consider, Outline

Real questions on 0450.1.3.3.01 — different ways in which businesses can grow, e.g. internal/external

The newest 20 of 26 written questions. Open one to see it on the real paper.

  1. 0450/22 · February/March 2026 · Q3b[12]

    Consider the advantages and disadvantages of the following two methods of growth CTD could use. Which method of growth should CTD use? Justify your answer. • • setting up a new café taking over a competitor’s café setting up a new café taking over a competitor’s café recommendation

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  2. 0450/12 · October/November 2025 · Q4e[6]

    Do you think the advantages of taking over a competitor are greater than the disadvantages? Justify your answer.

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  3. 0450/11 · May/June 2025 · Q4a[2]

    Identify two methods of external growth a business might use. Method 1: Method 2:

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  4. 0450/23 · May/June 2025 · Q1a[8]

    Explain two advantages and two disadvantages to Jemi of buying a franchise. Advantage 1: Advantage 2: Disadvantage 1: Disadvantage 2:

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  5. 0450/22 · October/November 2024 · Q2b[12]

    Consider the following three extension strategies BB could use for its best-selling product. Which strategy should BB use? Justify your answer. • Adding new features • Start selling in toy shops • Television advertising campaign Adding new features: Start selling in toy shops: Television advertising campaign: Recommend...

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  6. 0450/11 · May/June 2024 · Q2e[6]

    Do you think it is better for a business to use internal growth or external growth when planning to expand? Justify your answer

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  7. 0450/13 · May/June 2024 · Q4e[6]

    Explain two reasons why a business might want to grow. Which reason is likely to be the most important? Justify your answer.

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  8. 0450/13 · October/November 2023 · Q1b[2]

    Identify two ways a business can grow. Way 1: Way 2:

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  9. 0450/13 · October/November 2023 · Q2c[4]

    Outline two possible benefits to NPZ of having well-motivated employees. Benefit 1: Benefit 2:

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  10. 0450/13 · October/November 2023 · Q2d[6]

    Explain two methods NPZ could use to improve employee motivation. Method 1: Explanation: Method 2: Explanation:

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  11. 0450/12 · May/June 2023 · Q2b[2]

    Identify two possible reasons why a business might want to expand.

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  12. 0450/11 · October/November 2022 · Q4d[6]

    Explain two possible advantages to Beena of buying a franchise.

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  13. 0450/12 · October/November 2022 · Q1d[6]

    Explain two advantages to EQR of selling franchises as a way to grow its business.

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  14. 0450/21 · October/November 2022 · Q3b[12]

    three options for the future growth of SA

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  15. 0450/22 · May/June 2022 · Q1a[8]

    two ways TT could grow

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  16. 0450/23 · May/June 2022 · Q3b[12]

    Using Appendix 3 and other information, consider the two options for growth. Which option should BB choose? Justify your answer using suitable calculations. • Open a new shop. • Take over a competitor’s shop. Open a new shop: Take over a competitor’s shop: Recommendation:

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  17. 0450/13 · October/November 2021 · Q4e[6]

    Do you think it is better for a large business to produce a wide range of products than a small range of products? Justify your answer.

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  18. 0450/21 · October/November 2021 · Q2a[8]

    Explain two ways SSM can grow.

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  19. 0450/13 · May/June 2021 · Q2c[5]

    Outline one advantage and one disadvantage to Nadia’s business of selling franchises to expand. Advantage: Disadvantage:

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  20. 0450/12 · February/March 2021 · Q1e[6]

    Do you think a takeover of a competitor is the best way for a large business to grow? Justify your answer.

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What examiners said

Comprehensive responses • Many candidate responses showed a good understanding of the two forms of business growth and the advantages and disadvantages of both internal and external growth. • Many candidates analysed the two methods of growth. • Common responses for setting up a new café included high set-up costs, taking control of the layout or design of the café, being time-consuming looking fo...

— Examiner report, February/March 2026, 0450/22 Q3(b) (Cambridge)

Most candidates were able to identify two methods of external growth. A common error was to state internal methods, such as franchising or building more branches, or to explain how a business could increase sales.

— Examiner report, May/June 2025, 0450/11 Q4(a) (Cambridge)

This question was answered well as many candidates could give two advantages and two disadvantages of buying a franchise. Weaker responses lacked an understanding of what it meant to buy a franchise and answered in a general way about starting a business rather than buying a franchise. The most popular advantages included risk of failure was reduced as Jemi was buying the right to use a well-known...

— Examiner report, May/June 2025, 0450/23 Q1(a) (Cambridge)

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0450.1.3.3.01 — Different ways in which businesses can grow, e.g. internal/external — IGCSE Business Studies 0450 past paper questions | AssessPro