A step by step guide to business

Exam structure

Higher level

Time: 3 hours (400 marks) Allow 10 minutes for preview at start and 10 minutes for review at the end.

Section 1 (80 marks)

Short questions (answer 8 from 10). Allow 35 minutes.

Section 2 (80 marks)

Applied business question. Allow 35 minutes

Section 3 (240 marks)

Structured questions (answer 4 from 7). Allow 90 minutes (22 minutes per question).

Ordinary Level

Time: 21/2 hours (400 marks) Allow 10 minutes for preview at start and 10 minutes for review at the end.

Section 1 (100 marks)

Short questions (answer 10 from 15). Allow 40 minutes

Section 2 (300 marks)

Structured questions (answer 4 from 7). Allow 90 minutes (22 minutes per question).

Exam strategy

Maximising your grade in the business exam comes down to having a good understanding of how the marks are allocated, having an efficient answering style and managing your time well. Here are some useful tips on approach and timing:

Allow 10 minutes to read the paper carefully at the start. This will get your mind attuned to business terminology, help you to make the correct choice of questions, and remind you of relevant points (which you can jot down on your rough-work page). Resist the temptation to launch headlong into answering questions.

Stick closely to your exam strategy and timing. If you are getting bogged-down in a particular section, move on! You can always come back to it. Remember that the biggest "exam crime" is to leave question(s) unattempted! By making an effort to put something down in each part of the question, you will start picking up marks. The easiest marks to get are the first marks in each part of a question. The hardest marks are the final 15 per cent, derived from "polishing" the perfect answer.

Never write an essay-style answer in business. Everything should be structured in point-form. Train yourself to approach every question with this in mind - what exactly are they looking for here? How many points should I give? As a handy rule, assume five marks are allocated for each point. If part of a question is worth 25 marks, then give five points.

Make sure you explain or elaborate on a point where appropriate. Instructions to "explain, outline, illustrate, describe, discuss" all require some substantial points of information. Of the five marks per point, you will usually get two marks for stating it and three marks for further explanation/discussion.

Leave 10 minutes at the end to review your paper and spot any significant errors or items left out. It is tempting to keep writing furiously up to the final bell, but a nervous mistake made two hours earlier on the short questions or on a financial ratios calculation could cost you a grade, if not rectified.

Question by question

Section 1

Short questions

Tackle this section first, but do not spend more than 35 minutes (higher level) or 40 minutes (ordinary level) on it.

Definition-type answers are required, sometimes with examples or illustration. All carry equal marks and are written in the answer book that is returned at the end of the exam.

Because space is limited, think before you write! Aim to be as precise as possible and do not write more than the space allows. There are only three or four lines available for your answer so, if your handwriting is very large, you may have to modify it for this purpose. Avoid having to scribble out, Tippex, or rewrite words - it looks terrible and loses you valuable space.

Practice these answers in preparation for the exam. Use the 1999 and 2000 exam papers, sample papers and your "mock exam" paper to identify likely terms. It is relatively easy to get these marks (worth 20 per cent of the higher-level exam) under your belt right at the start and it will give you a great psychological boost. Each section on the course has particular terms or definitions worth revising e.g. entrepreneur, interest group, arbitration, feasibility study, transnational company, total quality management etc. Two of the short questions will probably require you to draw a simple diagram or draft some headings within the box provided, e.g. show a type of organisation structure or a typical span of control. You could be asked to do a basic calculation of a financial ratio (e.g. debt/equity) or an insurance payment from supplied figures, and you would need to show your workings. Regularly, the question will ask you to list some items, e.g. three promotional techniques or five sources of finance. In this case, keep your answer simple and direct - there is no need for elaboration.

Section 2

Applied business question (higher level only)

YOU are required to answer a three-part question based on a text (approximately 300 words), designed to test your ability to analyse a situation and apply business principles. For the 2001 exam, this question is based on units 3, 4 and 5 (Managing 1, Managing 2, Business in Action).

You must have illustrations or reference to the text in your answers, even if not explicitly stated in the question. Thus it is easy to pick up marks simply by making the most of the information in the supplied text. If you are asked to outline the management skills displayed by the person (20 marks), identify up to five skills and select a line of illustration from the text for each, i.e. five skills at four marks each (two marks for identifying it and 2 marks for the text reference).

You can expect that at least one part of the question will test you on management skills/activities and one part will look for an application of management, e.g. financial management or human resource management. In either case, what is needed is a good grasp of the basic principles, which you can then apply to the particular situation. So, in preparing for the applied business question, don't get weighed-down with detail, but review the main features and then trust your judgment.

Don't take too long on individual parts of the question. Make sure you are not wasting time by giving a long answer to part (a) and then duplicating a lot of the points in part (b). Usually part (c) will carry more marks, maybe twice as many as the other parts, so allocate your time and efforts accordingly. Be careful when interpreting the question. Keep asking yourself - what exactly are they looking for here. (Management skills or management activities? Market research or product development?) How many points should I give? If there are 40 marks available for part (c), then the points should be developed more fully than in the other parts.

Section 3

Structured questions

You are required to answer four questions from seven, at least one from Part 1 (unit 1 - people in business, units 6 and 7 - business environment) and at least two from Part 2 (units 2 to 5, covering enterprise, management, and business in action).

All questions carry equal marks and are usually sub-divided into three parts. Your choice of questions is vital - pick the questions which can deliver the most marks for you! Carefully examine the three parts, see how the marks are allocated, do a quick calculation on your potential score and compare it with other possible questions. Don't be put-off by what you initially think the question is asking - you may dismiss a question on financial management because you hate figures, yet it may turn out to be a very straightforward non-technical answer that is required.

Always think "structure" and "points" - how many marks going? How many points should I give? If in any doubt, give a bit more rather than less.

Remember to state and explain. Easy marks are lost by not developing the point through explanation or illustration. If you only state the point and fail to provide an explanation/illustration/example, you are likely to forego half the available marks. Be familiar with the outcomes verbs identified on the syllabus. Know what it means to analyse, distinguish, outline, evaluate etc.

In revising for Section 3, test your knowledge of specific material on the general course - can you give four remedies for breach of contract? Can you describe two long-term and two short-term sources of finance? Can you give five advantages of branding to a firm? Don't satisfy yourself with mere recognition - test your recall with a blank sheet of paper in front of you.

Review the legislation. There are seven specific pieces of legislation on the syllabus and you should know the main purpose and elements of each. Two relate to the consumer (1978 Consumer Information Act; 1980 Sale of Goods and Supply of Services Act), three to the area of employment and industrial relations (Employment Equality, Unfair Dismissals, Industrial Relations Act). The others are the 1988 Data Protection Act and the 1990 Companies Act (as it relates to the formation of private companies).

Ordinary level

Section 3

Unlike the higher-level paper, these questions are regularly sub-divided into five parts and there is usually some initial text which prefaces the question. This helps you to earn more marks as there can be clues in the text and it is easier to get full marks on smaller, more specific questions.