0455.3.5.2 — small firms The advantages and disadvantages of small firms, the challenges facing small firms and reasons for their existence.: past paper questions
Real questions on 0455.3.5.2 — small firms the advantages and disadvantages of small firms, the challenges facing small firms and reasons for their existence.
The newest 5 of 5 written questions. Open one to see it on the real paper.
- 0455/23 · May/June 2023 · Q3a[2]
Identify two challenges facing small firms.
See it on the paper → - 0455/12 · October/November 2022 · Q15[1]
Which statement is correct when comparing small firms with large firms?
See it on the paper → - 0455/21 · October/November 2022 · Q2c[6]
Analyse the reasons for the existence of small firms.
See it on the paper → - 0455/22 · May/June 2021 · Q5d[8]
Discuss whether or not it is an advantage to keep a firm small.
See it on the paper → - 0455/21 · May/June 2020 · Q3b[4]
two challenges facing small firms.
See it on the paper →
What examiners said
There are many challenges facing small firms and most candidates were able to identify two, such as not being able to take advantage of economies of scale and an inability to borrow large sums of money from banks.
— Examiner report, May/June 2023, 0455/23 Q3(a) (Cambridge)
As noted in the key comments above, candidates often answered a different question, analysing the benefits of small firms to the economy rather than reasons for their existence. It was difficult for this approach to gain reward. The best answers were those where the idea of limitations to growth were analysed, such as lack of incentives and lack of available capital. The most popular approach was...
— Examiner report, October/November 2022, 0455/21 Q2(c) (Cambridge)
There was a range of responses to this question. Some candidates showed confused thinking by writing about small firms having an advantage because their total wage and raw material costs are lower than those of large firms. Those candidates did not consider how small firms’ total revenue is likely to compare to those of large firms. They did not recognise the importance of considering the relative...
— Examiner report, May/June 2021, 0455/22 Q5(d) (Cambridge)
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