O Level Commerce: Sustainability and Ethics — Practice Questions

These questions cover Topic 6, Sustainability and ethics, of Cambridge O Level Commerce (7100, 2026-2028): the purpose of sustainability in the supply chain, actions to improve sustainability, ethics and fair trade, misleading advertising and harmful disposal, and consumer protection.

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exam’s exact structure, question count or mark tariffs — examination boards hold copyright in their own papers. Use these alongside the official past papers available free from your board.

Related: Sustainability and Ethics study guide | Sustainability and Ethics revision notes

---

Section A - multiple choice

1. Which action is an example of sustainable logistics? [1] A selling eco-friendly products B planning delivery routes to reduce fuel use C offering free repairs D using persuasive advertising

2. Which best describes ethics in commerce? [1] A rules made by government B moral principles guiding business behaviour C methods of payment D ways of raising finance

3. A business that offers a platform for customers to sell their used items to other customers is offering: [1] A a cash and carry B a digital resale marketplace C a loss leader D debt factoring

Section B - structured questions

4. Bloom Cosmetics sells skin cream in plastic jars and sends orders by courier. (a) Explain three actions Bloom Cosmetics could take to improve sustainability. [6] (b) Explain one reason Bloom Cosmetics might be reluctant to take these actions. [2]

5. An online shoe seller finds that one in four pairs is returned. (a) Explain why a high level of returns is unsustainable. [2] (b) Explain two ways the seller could reduce returns. [4]

6. A soft-drinks factory is located in a region with water shortages. Discuss the importance of water stewardship for the factory. [6]

7. A café chain is deciding whether to sell only fair trade coffee. (a) Explain the role of fair trade in commerce. [3] (b) Discuss whether the café chain should make this change. [6]

8. A gym advertises “Lose 10 kg in a week - guaranteed!” A battery maker is found to be dumping waste in a river. (a) Identify the ethical issue in each case. [2] (b) Explain how each issue could affect the business. [4]

9. Explain three reasons why consumer protection is needed. [6]

10. Leila’s new kettle stops working after a week. The shop says it is “not our problem”. (a) Describe the actions Leila could take to resolve her complaint. [4] (b) Explain why it is in the shop’s interest to resolve complaints fairly. [4]

---

Answers

1. B. [1]

2. B. [1]

3. B. [1]

4. (a) Any three explained: reduce or replace plastic packaging with refillable or recyclable jars [2]; use sustainable materials (responsibly sourced ingredients) [2]; implement sustainable logistics, such as couriers using electric vehicles or grouped deliveries [2]; recycle and reduce waste in production [2]; sell eco-friendly products [2]. [max 6] (b) Higher short-term costs could reduce profit or force higher prices, and customers may buy cheaper brands [2].

5. (a) Each return means extra transport (fuel and emissions) and packaging [1], and some returned goods cannot be resold and are wasted [1]. (b) Any two explained: accurate size guides and fitting advice [2]; clear photos and descriptions [2]; customer reviews about fit [2]; virtual try-on tools [2]. [max 4]

6. [6] Importance: water is a key input, so careful use protects the factory’s own supply; reducing use lowers costs; treating waste water prevents pollution and fines; sharing water fairly maintains good relations with the community and protects reputation. Limits: water-saving and treatment equipment is costly; benefits take time. Conclusion: very important in a water-short region, because without water the factory cannot operate.

7. (a) Fair trade ensures producers receive a fair price and better working conditions [1]; it gives businesses ethically sourced products to sell [1] and consumers a way to support producers in low-income countries [1]. (b) [6] For: attracts ethically minded customers; improves reputation; secure supply from loyal producers; may allow a slightly higher price. Against: fair trade coffee may cost more, reducing profit or raising prices; some customers care more about price; limited choice of coffee types. Conclusion: likely to be worthwhile if the chain’s customers value ethics and the extra cost is small per cup.

8. (a) Gym: misleading advertising [1]; battery maker: harmful disposal of products/waste [1]. (b) Gym: customers who do not get results complain or leave, and the gym may face legal action, damaging trust [2]. Battery maker: pollution harms people and wildlife, leading to fines, boycotts and a damaged reputation [2].

9. Any three explained: sellers have more knowledge than buyers, so consumers can be misled [2]; faulty or unsafe goods can cause harm [2]; individuals have little power against large businesses [2]; consumers should receive goods as described and good value for money [2]. [max 6]

10. (a) Keep the receipt [1]; return to the shop and explain the fault calmly, asking for a refund, repair or replacement [1]; write to the manager or head office [1]; contact a consumer protection organisation, or take legal action as a last resort [1]. (b) Fair handling keeps the customer loyal and encourages repeat purchases [2]; it avoids bad reviews and damage to reputation, and the cost of legal action [2].

A note on exam technique for this topic

For each action you suggest, say how it reduces environmental harm and how it affects the business in the question. In 6-mark “discuss” items, give developed points for and against and a final judgement.

Frequently asked questions

Which ethical issues does 7100 name? Misleading advertising and harmful disposal of products, alongside the role of fair trade in commerce.

Do I need to name consumer protection laws? No. The syllabus asks for the reasons for consumer protection and the actions buyers and sellers take to resolve complaints.

How many sustainability actions should I know? Nine are listed in 6.1.2, from sustainable materials and logistics to free repair services and water stewardship.

Official syllabus

Cambridge O Level Commerce (7100) syllabus for 2026, 2027 and 2028 - official syllabus PDF.