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CAIE IGCSE Business Studies 1.3.4 Why Some Businesses Succeed and Others Fail Questions

Practise success-and-failure questions by applying risk factors to the case and choosing the most important factor with reasons.

Syllabus
2027–2029
Course
Business 0264

Exam points

  • Explain failure risks such as poor planning, weak finance or lack of management experience.
  • Apply competition, demand or working-capital points to the named start-up situation.
  • Justify the most important success or failure factor after comparing case evidence.

CAIE IGCSE Business Studies 1.3.4 Why Some Businesses Succeed and Others Fail Questions question 1

[Maximum number: 2]

WFH produces hats and sells them to a mass market. It holds a high level of inventory. The Managing Director is concerned about the liquidity of the business and has been analysing WFH's financial statements. An extract is shown in Table 2.1. The Managing Director thinks that the business might fail. Other stakeholder groups might also be interested in WFH's financial statements.

Table 2.1

Table 2.1

Identify two possible causes of business failure.

Cause 1:

Cause 2:

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