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# Tips for igcse exam (paper 1)

the exam has 5 small cases, which means aprox 21 min/ case study (+ 15 min for safety margin)
inside each text: a- 1 min; b- 2 min; c- 4 min; d- 6 min; e- 8 min
Always imagine youre the owner/ manager/ worker/ supplier/ client of that business !

for quest c+d, think before writing what adv/ disadv/ methods you know better (bcs you have to explain them)

## for quest e, any answer is (almost) always accepted IF it is justified

for quest e, pay attention to key words, like:
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"always" (eg: latest tech always reduces bs costs). the common (not always!) answer is this case is NO:
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## "best" (eg: buying a franchise is the best way to start a bs).

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first line: there are more methods/ ways to . . . . (do what the question is about)

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## liquidity (CA, CL) or

both of them (usually, some values goes up, the others go down)

## classify with + and the changes in numbers from the table

if possible, calculate the difference between values as a % (eg: from 40 to 50 means +20%)

## write in words what you discovered about the numbers

eg1: the table/ text shows that SR increased from 200 to 300, which means + 50%. in the same time,
gross profit increased from 80 to 100, which means + 20%

eg2: the table/ text shows that CA increased by 25%- bcs the bs has double stocks, while CL
increased by 20%- bcs the bs has a smaller overdraft

calculate RATIOS

## liquidity ratios: CR, QR (remember: they are NOT %)

eg1: as a result, gross profit% decreased from 40% to only 33.3%, which means that the bs uses less
efficient its resources (important for investors)

eg2: as a result, CR increased from 1.5 to 1.7. which means the bs can cover better its short termdebts (important for banks and suppliers)

short conclusion (eg: Michel should be happy about the liquidity of the bs, but he should pay more attention
to VC, to improve profitability)

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