Igcse Business Studies

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BUSINESS STUDIES
Paper 2

0450/02
May/June 2003 1 hour 45 minutes

Candidates answer on the Question Paper. No Additional Materials are required.

READ THESE INSTRUCTIONS FIRST Write your Centre number, candidate number and name on all the work you hand in. Write in dark blue or black pen in the spaces provided on the Question Paper. Do not use staples, paper clips, highlighters, glue or correction fluid. Answer all questions. At the end of the examination, fasten all your work securely together. The number of marks is given in brackets [ ] at the end of each question or part question. The business described in this question paper is entirely fictitious.

For Examiner’s Use 1 2 3 If you have been given a label, look at the details. If any details are incorrect or missing, please fill in your correct details in the space given at the top of this page. Stick your personal label here, if provided. 4 5 6 7 TOTAL This document consists of 10 printed pages and 2 blank pages.
SP (CW/KN) S32600/3 © CIE 2003

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2 Leroy Clothing Ltd. Garfred Leroy set up his business 10 years ago. The business manufactures a range of clothes. Its best selling products are fashionable leisure clothes such as sweatshirts. The consumers of these clothes are mainly in the age range 18-25 years and usually have high incomes. Garfred is ambitious and he wants his business to continue to grow. He thinks that this can be achieved by widening his range of products. He employed a market research agency to investigate the clothing market. He wanted to identify a consumer need or a gap in the market. He told the agency to research the 18-25 year age range. The agency interviewed a sample of potential consumers. Some of the results of this survey are listed below: ➢ Young people like to buy fashionable clothes even if they are expensive. ➢ Price is not the most important factor in the buying decisions of young people. ➢ Young people buy their clothes in

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