Why some (new or established) businesses • Causes of business failure, e.g. lack of: past paper questions
Real questions on why some (new or established) businesses • causes of business failure, e.g. lack of
The newest 12 of 12 written questions. Open one to see it on the real paper.
- 0450/11 · May/June 2026 · Q1c[4]
Identify four reasons why a business might fail. reason reason reason reason
See it on the paper → - 0450/22 · February/March 2026 · Q1a[8]
Explain four reasons why a business might remain small. reason reason reason reason
See it on the paper → - 0450/11 · May/June 2025 · Q3a[2]
Define ‘dismissal’.
See it on the paper → - 0450/12 · May/June 2025 · Q3b[2]
Identify two reasons why new businesses are at a greater risk of failure. Reason 1: Reason 2:
See it on the paper → - 0450/22 · February/March 2025 · Q1a[8]
Explain four reasons why new businesses are at a greater risk of failing than existing businesses. Reason 1: Reason 2: Reason 3: Reason 4:
See it on the paper → - 0450/11 · October/November 2023 · Q1d[6]
Explain two reasons (other than lack of finance) why Desmond’s new business might be at greater risk of failure than an established business.
See it on the paper → - 0450/12 · February/March 2023 · Q2a[2]
Identify two possible causes of business failure. Cause 1: Cause 2:
See it on the paper → - 0450/12 · May/June 2022 · Q4c[4]
Identify four reasons why a new business might be at greater risk of failure than an established business
See it on the paper → - 0450/21 · May/June 2021 · Q1b[12]
Which problem will be the easiest for FO to overcome? Justify your answer. Problems: •More difficult to control the business •Lack of finance •Clash of business cultures
See it on the paper → - 0450/23 · May/June 2021 · Q1b[12]
Explain how the following three factors could cause Ruben’s new business to fail: • • • Lack of management experience Insufficient working capital Poor planning Which factor do you think is most important to Ruben? Justify your answer. Lack of management experience: Insufficient working capital: Poor planning: Conclusi...
See it on the paper → - 0450/22 · October/November 2020 · Q3a[8]
two reasons why a new business is at a greater risk of failing than an established business.
See it on the paper → - 0450/23 · May/June 2019 · Q2a[8]
Identify and explain two possible reasons for the failure of the business that Peter used to work for. Reason 1: Explanation: Reason 2: Explanation:
See it on the paper →
What examiners said
Comprehensive responses • Most candidates understood the reasons why some businesses might remain small and clearly explained these reasons including owner’s preference where the owner did not want to manage, or felt they lacked the skills to manage, a larger business. • Many candidates understood that a lack of finance was also a reason and then explained that smaller businesses may not be able t...
— Examiner report, February/March 2026, 0450/22 Q1(a) (Cambridge)
Many candidates were not able to clearly define dismissal. Often one mark was awarded for explaining that this involves a worker losing their job for some sort of bad behaviour. The weakest answers confused dismissal with redundancy or retirement.
— Examiner report, May/June 2025, 0450/11 Q3(a) (Cambridge)
This question was well answered by most candidates. Typical correct answers focused on reasons including competition, lack of brand recognition and limited finance.
— Examiner report, May/June 2025, 0450/12 Q3(b) (Cambridge)
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