Cambridge IGCSE Commerce: Commercial Operations — Practice Questions (0715)

These are original questions written for Marlbridge, in the style and at the standard of the examination. They are not reproduced past-paper questions — Cambridge International holds copyright in its own papers. Use these alongside the official past papers available free from your board.

Related: Commercial Operations study guide and revision notes

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Section A

1. State two features of a franchise, from either the franchisor’s or franchisee’s perspective. [2]

2. Name two documents used in home trade, and state when each is typically issued. [2]

3. State one factor that affects choice of communication method. [1]

Section B

4. Two tailors decide to join together, sharing both profit and liability for the business’s debts, rather than one continuing to trade alone.

(a) Identify the type of business ownership this describes. [1] (b) State one advantage and one disadvantage of this ownership type compared with a sole trader operating alone. [2]

5. A small, independent grocery shop continues to trade successfully despite a large supermarket opening nearby.

(a) Suggest two reasons why the independent shop is able to survive alongside the supermarket. [2] (b) Explain one way ecommerce might further affect this independent shop’s trade in future. [3]

6. A manufacturer sells goods to a retailer on credit, and some of the goods are later found to be faulty and returned.

(a) Name the document issued when the retailer first places the order, and the document issued when the goods are delivered. [2] (b) Name the document issued once the faulty goods are returned, and explain its purpose. [2]

7. A business is deciding where to locate a new distribution warehouse for its online retail operation.

(a) Identify two ecommerce-specific location factors relevant to this decision. [2] (b) Explain why these factors might differ from those considered for a traditional physical shop. [3]

8. A clothing manufacturer decides to stop making its own packaging in-house and instead pays another company to produce it under contract. Identify the practice being described, and suggest one reason the manufacturer might choose this approach. [3]

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Answers

1. Any two of: the franchisee uses an established brand name and business model [1]; the franchisor receives fees or a share of profits from the franchisee in exchange for the licence to trade under its name [1].

2. Enquiry — sent before an order is placed, to ask about price, availability or terms [1]. Invoice — issued after goods have been delivered, requesting payment [1]. (Any two correctly paired documents-and-timing gain full credit.)

3. Any one of: urgency, cost, security, distance, availability of networks, importance of the message [1].

4. (a) Partnership [1]. (b) Advantage: more capital can be raised and workload/expertise can be shared between partners [1]. Disadvantage: profits must be shared, and disagreements between partners can arise, alongside each partner still typically bearing personal liability for the business’s debts [1].

5. (a) Any two of: personal service, flexible opening hours, convenience (for example, proximity to customers’ homes), or local knowledge of customers’ needs and preferences [2]. (b) Ecommerce could increase competition for the independent shop if customers switch to buying similar goods online instead [1–2], though the shop could also use ecommerce itself (for example, a simple online ordering or delivery service) to reach customers who value convenience, turning a threat into an opportunity if adopted effectively [1].

6. (a) Order — issued when the retailer first places the order [1]. Delivery note — issued when the goods are delivered [1]. (b) Credit note [1] — its purpose is to formally record and adjust the amount owed by the retailer to reflect the value of the returned faulty goods, reducing what the retailer must pay [1].

7. (a) Any two of: availability of reliable wi-fi/internet connectivity, suitable warehousing space, access to technology specialists, or efficient logistics/transport links for delivery [2]. (b) A traditional physical shop’s location factors focus heavily on being visible and accessible to passing customers (footfall, proximity to competitors, transport links for customers) [1–2], whereas an ecommerce distribution warehouse does not need to attract passing customers at all, since sales happen online — its location instead prioritises efficient dispatch and delivery logistics and reliable technology infrastructure over customer footfall [1].

8. This describes outsourcing, specifically contract manufacturing [1]. The manufacturer might choose this approach because the specialist packaging company can produce the packaging more efficiently or cheaply than the manufacturer could in-house, allowing the manufacturer to focus its own resources and expertise on its core clothing production instead [2].

A note on exam technique for this topic

Question 4 illustrates the ownership-progression habit the study guide recommends: working through sole trader, to partnership, to private limited company as a connected sequence makes the advantages-and-disadvantages comparisons far easier to recall under pressure than memorising each form in isolation. Every scenario question above also rewards justifying an answer against the specific business situation given, rather than listing general features — exactly the AO3 application skill the study guide identifies as central to Paper 2’s structured questions on this topic. When practising further scenarios from past papers, check whether a question is really asking you to classify something correctly (Paper 1 style) or to justify a recommendation against a described business situation (Paper 2 style), since the two question types reward different kinds of answer even when they draw on the same underlying content across the full range of 2.1 to 2.6.