2026 Cambridge IGCSE Enterprise (0454) Practice Paper with Answers

A social enterprise is a business organisation set up primarily to trade for a social or environmental purpose. It operates commercially to earn income, but its main objective is to benefit the community or society, with any surplus or profit generated being reinvested into that mission rather than distributed to private shareholders.

Award 1 mark for a partial definition (e.g. an enterprise set up to help the community / a not-for-profit enterprise).
Award 2 marks for a clear and accurate definition (e.g. an organisation that trades commercially to achieve social/environmental goals and reinvests its surplus/profit into that purpose).

Variable costs are business costs that alter as the volume of production changes. When an enterprise increases output, variable costs rise (e.g. raw material costs, piece-rate labour); when production ceases or falls, these costs decrease accordingly.

Award 1 mark for stating that it is a cost that changes/varies.
Award 1 mark for stating that it varies directly with the level of output / sales / production.

The negotiation process consists of three main stages according to the enterprise syllabus:
1. Planning (setting objectives, preparing arguments and evidence)
2. Conducting the negotiation (setting the tone, presenting proposals, listening, reaching agreement)
3. Measuring success (evaluating outcomes and identifying improvements)

Award 1 mark for each valid stage identified (up to 2 marks):
- Planning / preparation
- Conducting the negotiation / holding the negotiation
- Measuring success / evaluating the negotiation

Enterprises must update business plans regularly because circumstances are dynamic. Key reasons include:
- Comparing actual performance against forecasts to adjust targets
- Reflecting new aims or objectives as the business grows
- Responding to changes in the market environment (e.g. competitor actions, customer trends, legal regulations)
- Supporting applications for new funding or loans from investors and banks.

Award 1 mark for each valid reason stated (up to 2 marks):
- Objectives have changed / been met
- Financial forecasts/budgets need revising based on actual performance
- Changes in the external environment / new competitors / market trends
- To secure additional finance / satisfy new investors
- Changes in resource availability or key personnel

Trade payables represent short-term debts owed by a business to trade creditors (suppliers). When an enterprise receives inventory or materials on trade credit, it records the outstanding amount as a trade payable until payment is settled.

Award 1 mark for identifying that it is money owed by the enterprise.
Award 1 mark for stating that it is owed to suppliers / for goods and services received on credit.

Marketing communications are the techniques used by an enterprise to inform, persuade, and remind target customers about its products or brand. Recognised methods include leaflets/posters, social media, word of mouth, local newspapers, radio, and sponsorship.

Award 1 mark for each valid method of marketing communication identified (up to 2 marks):
- Social media / websites / email / online advertising
- Posters / leaflets / flyers
- Newspapers / magazines
- Radio / television / cinema
- Word of mouth / announcements
- Sponsorship

To answer this question effectively:
1. State a specific unexpected challenge encountered during the project (e.g. raw material supplier failed to deliver on time).
2. Explain the practical steps taken to solve the problem (e.g. sourced alternative local materials at short notice and adjusted production schedules).
3. Outline the positive outcome/impact on the enterprise (e.g. avoided missing customer delivery deadlines and maintained customer satisfaction).

1 mark for identifying an unexpected challenge/problem.
1 mark for applying/explaining the specific problem-solving action taken in the context of the candidate's own enterprise project.
0.75 mark for explaining the outcome/consequence of resolving the issue.

Benefit 1: Limited liability. The personal possessions of the owners (shareholders) are protected if the business fails; they only risk losing the amount invested in shares.
Benefit 2: Ability to raise additional capital. A private limited company can issue shares to new investors or associates, making it easier to expand than relying solely on personal savings or bank loans.

1 mark for identifying and explaining the first benefit (limited liability / legal identity).
1 mark for identifying and explaining the second benefit (easier to raise finance / continuity of existence).
0.75 mark for clear distinction/comparison to the sole trader structure.

Step 1: Calculate contribution per unit:
\(\text{Contribution per unit} = \text{Selling price} - \text{Variable cost per unit}\)
\(\text{Contribution per unit} = \$14.00 - \$6.00 = \$8.00\)

Step 2: Calculate break-even level of output:
\(\text{Break-even output} = \frac{\text{Total fixed costs}}{\text{Contribution per unit}}\)
\(\text{Break-even output} = \frac{\$960.00}{\$8.00} = 120\text{ units}\)

1 mark for correct formula or calculating contribution per unit ($8.00).
1 mark for dividing total fixed costs by contribution (960 / 8).
0.75 mark for correct final numerical answer with correct units (120 units).

Before entering a negotiation (such as agreeing prices with a supplier or terms with a venue provider), gathering evidence (like competitor prices, market demand data, or cost breakdowns) gives credibility to the proposal. It enables the entrepreneur to justify their position, respond effectively to objections, and avoid making unplanned concessions, ultimately securing favourable terms.

1 mark for identifying the purpose of evidence in negotiation (e.g. backing up arguments, justifying prices, countering objections).
1 mark for developing the explanation of how this strengthens bargaining power or builds credibility.
0.75 mark for linking this preparation directly to achieving the desired outcome/agreement.

An action plan details key tasks, allocated personnel, required resources, and target completion dates. Regularly reviewing and updating it is essential because real enterprise conditions change—such as tasks taking longer than planned or unexpected bottlenecks arising. Updating keeps the team aligned, ensures milestones are met, and prevents project failure.

1 mark for identifying the role of an action plan in tracking tasks and deadlines.
1 mark for explaining why updates are needed (e.g. handling delays, reallocating resources, adapting to changes).
0.75 mark for showing the impact on project success or teamwork coordination.

Factor 1: Available budget / cost of communication. The enterprise must choose channels that fit within its financial resources without causing cash flow problems (e.g. social media posts or printed flyers are relatively low cost).
Factor 2: Target market behaviour / reach. The method must effectively reach the intended audience; for students, visual social media channels or school noticeboards are far more likely to be seen than print newspapers.

1 mark for identifying and explaining the first factor (e.g. cost/budget constraints).
1 mark for identifying and explaining the second factor (e.g. reach/habits of target audience).
0.75 mark for application to the student target market context.

Consumer protection laws require enterprises to ensure that any goods sold are of satisfactory quality, fit for their intended purpose, and match the description provided in advertising or product labels. Failing to comply can lead to legal penalties, required customer refunds, and severe reputational damage.

1 mark for identifying a valid consumer legal obligation (e.g. accurate description, safety standards, fit for purpose).
1 mark for explaining what the enterprise must do in practice to comply.
0.75 mark for explaining the implication or consequence for consumers/enterprise.

Advantage: Offering trade credit (e.g. 30 days to pay) provides a competitive edge, encouraging retailers or business customers to place larger orders since they do not need immediate cash upfront.
Disadvantage: It delays cash inflows, creating trade receivables. If buyers default or take longer to pay, the enterprise may experience severe liquidity/cash flow problems and struggle to meet its own short-term costs.

1 mark for identifying and explaining a valid advantage (e.g. increased sales / customer loyalty).
1 mark for identifying and explaining a valid disadvantage (e.g. delayed cash flow / risk of bad debts).
0.75 mark for demonstrating understanding of trade credit mechanisms (e.g. credit periods / receivables).

1. Identification of a valid primary research method: Questionnaire / online survey / face-to-face interview / focus group (1 mark).
2. Application to EcoPaws: Mentioning specific dog-grooming services, busy pet owners, local dog parks/neighbourhoods, or mobile service schedule (up to 2 marks).
3. Justification of why the method is effective: Explains that questionnaires can collect specific quantitative and qualitative data on exact customer preferences (e.g. organic shampoo preferences or weekend availability) from a large sample of local dog owners before committing capital, keeping start-up research costs low (up to 2 marks).

Award marks as follows:
- AO1 (Knowledge): 1 mark for identifying an appropriate primary market research method (e.g. questionnaire, survey, interview, focus group).
- AO2 (Application): Up to 2 marks for applying to the context of EcoPaws / dog-grooming / pet owners / mobile service.
- AO3 (Analysis / Justification): Up to 2 marks for explaining why this method is suitable / justified (e.g. allows targeted questions about specific treatments, gathers direct feedback, cost-effective for a start-up before investing in equipment).

Example 5-mark response:
The owner could use an online questionnaire distributed via local pet-owner social media groups [AO1]. This allows EcoPaws to ask local dog owners specifically what types of grooming treatments they require and when they need the mobile van to visit [AO2]. This is justified because it reaches a large number of targeted pet owners quickly at almost no cost, ensuring the business only invests in equipment for services with proven local demand [AO3].

1. Identification of a suitable source of finance: Personal savings / owners' capital (or small bank loan / government grant / family loan) (1 mark).
2. Application to the tutoring partnership context: Referencing the \( \$3\,000 \) required, the partnership structure, or the computers, desks, and software needed (up to 2 marks).
3. Justification of why the source is appropriate: Explaining that personal savings avoid interest costs and loan debt, which protects cash flow when student enrolments might initially be low, while allowing the two partners to share the financial contribution equally (up to 2 marks).

Award marks as follows:
- AO1 (Knowledge): 1 mark for identifying a valid source of start-up finance (e.g. personal savings/owners' capital, bank loan, government grant, borrowing from family and friends, leasing).
- AO2 (Application): Up to 2 marks for contextual application to the partnership / \( \$3\,000 \) equipment/furniture / tutoring centre.
- AO3 (Analysis / Justification): Up to 2 marks for reasoned justification of why this source is ideal compared to alternatives (e.g. no interest charges, no loss of control to outside lenders, sharing the initial financial commitment between two partners).

Example 5-mark response:
A suitable source is personal savings (owners' capital) [AO1]. The two partners can each contribute \( \$1\,500 \) to purchase the computers and desks needed for the tutoring centre [AO2]. This is justified because, unlike a bank loan, there is no interest to pay back, which reduces fixed monthly cash outflows while the new business builds up its student numbers and establishes regular tuition fee income [AO3].

### Model Response

#### 1. Bank Loan
Advantages:
* Retention of control and ownership: A bank loan is debt finance, meaning Tariq does not have to give away any equity, share in ownership, or management control of SpokeWorks to the lender. He retains full autonomy over business decisions regarding his custom electric bicycle designs.
* Structured budgeting: Repayments are spread over a fixed period with predictable scheduled instalments, allowing Tariq to incorporate fixed loan repayments into his monthly cash flow forecasts for SpokeWorks.
* Availability of full lump sum: Tariq can secure the entire $6000 upfront, allowing him to purchase the specialized machinery and battery/motor inventory immediately without delay.

**Disadvantages:**
* **Interest and financial burden:** Tariq will have to pay interest on top of the principal amount borrowed, increasing SpokeWorks' total fixed costs and raising its break-even point.
* **Repayment risk regardless of sales:** Monthly instalments must be paid regardless of whether the new electric bicycles generate sufficient sales revenue immediately. If demand is slow, SpokeWorks could experience severe cash flow deficits.
* **Collateral and qualifying criteria:** The bank may require security (collateral) against workshop equipment or personal assets, which Tariq risks losing if the expansion fails.

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#### 2. Crowdfunding
**Advantages:**
* **Market validation and pre-orders:** Setting up a rewards-based crowdfunding campaign allows Tariq to test customer interest in custom electric bicycles before purchasing components. Backers can pre-order bikes, eliminating the risk of unsold stock.
* **No debt or interest obligations:** Money raised through donation or rewards-based crowdfunding does not have to be repaid with interest, keeping SpokeWorks' regular cash outflows low during the critical start-up phase.
* **Promotional publicity:** The crowdfunding platform raises awareness of SpokeWorks among cycling enthusiasts and potential customers beyond Tariq's local repair area.

**Disadvantages:**
* **All-or-nothing platform risk:** Many crowdfunding platforms operate an 'all-or-nothing' model where Tariq receives none of the pledged funds if he fails to meet his full $6000 target within the set timeframe.
* Platform fees and administration: Crowdfunding platforms charge listing and processing fees (often 5% to 8% of funds raised), reducing the net capital available to buy equipment.
* Time and effort required: Creating high-quality promotional videos, pitch materials, and managing communication with backers requires substantial time and enterprise skills, diverting Tariq's attention away from his existing workshop repair operations.

### Levels of Response Grid (10 Marks Total)

* Level 3 (8–10 marks):
Candidate demonstrates detailed knowledge of both sources of finance and provides developed analysis (AO3) of the advantages and disadvantages of both a bank loan and crowdfunding. Points are thoroughly applied to Tariq's enterprise context (AO2), including reference to the $6000 capital requirement, machinery/inventory, or custom electric bicycle workshop.
*(To reach the top of Level 3 [9–10 marks], both sources must be analysed with balanced advantages and disadvantages in context.)*

* **Level 2 (4–7 marks):**
Candidate demonstrates knowledge of sources of finance (AO1) with application to the scenario (AO2) and simple or one-sided analysis (AO3).
- *6–7 marks:* Analysis of advantages/disadvantages of both sources applied to SpokeWorks, OR detailed two-sided analysis of one source in depth.
- *4–5 marks:* Identified points for one or both sources with sound application to the scenario.

* **Level 1 (1–3 marks):**
Candidate demonstrates basic knowledge and understanding of bank loans and/or crowdfunding (AO1). Answers are generic, descriptive, or list-like with little or no application to the enterprise scenario.

* **Level 0 (0 marks):**
No creditable response.

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### Indicative Content

#### Bank Loan:
* **AO1 (Knowledge):** Fixed borrowing for a specific term; incurs interest; requires regular repayment; debt finance.
* **AO2 (Application):** Tariq needs a fixed sum of $6000; buying machinery and component stock (motors/batteries); already running an existing repair workshop; can forecast loan repayments against repair revenues.
* AO3 (Analysis):
- Advantage: Allows immediate purchase of machinery without waiting; Tariq keeps 100% control of SpokeWorks without external interference.
- Disadvantage: High fixed interest expense raises monthly cash outflows; failure to make repayments could lead to loss of assets/insolvency.

#### Crowdfunding:
* AO1 (Knowledge): Raising small amounts of capital from a large pool of individuals online; can be reward-based, equity-based, or donation-based; platforms take a commission fee.
* AO2 (Application): Pre-selling custom electric bicycles; reaching cycling enthusiasts; testing demand for innovative e-bikes before manufacturing.
* AO3 (Analysis):
- Advantage: No debt/interest repayment burden improves liquidity; acts as free marketing and validates market demand.
- Disadvantage: Risk of failing to reach the $6000 target means receiving zero funding; high marketing effort and platform fees reduce profit margin.

An effective response evaluates both options in the context of PureBliss Drinks ($2500 start-up expansion cost, fresh organic juice market, corporate/school events):

### Option 1: Bank Loan
**Advantages:**
- Provides immediate access to the full lump sum of $2500 needed to purchase the blending unit and cold-storage equipment without delay.
- Rohan retains complete ownership and control over PureBliss Drinks; lenders do not gain a share of profits or decision-making power.
- Fixed monthly repayments over two years allow predictable financial planning and budgeting in his cash flow forecast.

Disadvantages:
- Interest charges increase the total amount repaid, adding to monthly fixed costs.
- PureBliss Drinks must meet regular monthly repayments regardless of whether corporate events or school sports bookings are seasonal or fluctuate, creating cash flow risk.
- The bank may require collateral or a personal guarantee, which adds personal financial risk if demand falls.

### Option 2: Reward-Based Crowdfunding
Advantages:
- Does not require debt repayment or interest payments, protecting cash flow during slow seasonal months.
- Acts as free marketing and promotion, raising consumer awareness among corporate clients and school communities ahead of launching the catering service.
- Pre-validates market interest; supporters who back the project are likely to become repeat customers.

Disadvantages:
- Platform fees and costs of rewards (juice vouchers and branded cups) will erode funds raised, meaning Rohan may net less than the $2500 needed.
- If using an 'all-or-nothing' platform, failing to reach the $2500 funding target means receiving zero funds, delaying expansion.
- Managing campaign promotion and fulfilling voucher/cup orders requires substantial time and enterprise effort.

### Evaluation & Rejection of Alternative:
- Recommendation Example: Rohan should choose Option 2 (Crowdfunding). PureBliss Drinks relies on community and event awareness; offering vouchers directly drives initial event footfall and tests customer demand without committing the enterprise to rigid debt repayments during quiet winter/school holiday periods. Option 1 is rejected because fixed loan repayments create an inflexible financial burden that could trigger cash flow deficits if event bookings take time to establish.
(Alternatively, a candidate can validly justify Option 1 by highlighting certainty of capital and speed of purchasing equipment, rejecting Option 2 due to the uncertainty of reaching crowdfunding targets).

Marking Grid (Levels of Response):

- Level 4 (12–15 marks):
- Candidate offers a comprehensive, two-sided evaluation of both options firmly rooted in the context of PureBliss Drinks.
- Clear, reasoned judgment recommending one option and explicitly justifying the rejection of the other option.
- Thorough analysis of financial risk, cash flow impact, and enterprise objectives.
(To achieve 14–15 marks, the evaluation must be fully supported with deep application to the scenario data/context).

- Level 3 (8–11 marks):
- Candidate provides developed analysis of positive and negative impacts of one or both options (e.g. analysis of how fixed interest affects cash flow during low-demand periods vs. the impact of campaign fees and reward fulfillment costs).
- Demonstrates good application to the juice catering enterprise context.
- Includes a simple or partially supported recommendation/choice.

- Level 2 (4–7 marks):
- Candidate applies enterprise knowledge to the context of PureBliss Drinks (e.g. references to $2500 equipment cost, juice vouchers, seasonal school/corporate events).
- Gives brief/limited analysis of benefits or drawbacks of one or both options.

- Level 1 (1–3 marks):
- Demonstrates generic enterprise knowledge of bank loans and/or crowdfunding.
- Limited or no application to the scenario; descriptive statements without analysis.

- 0 marks: No creditable response.

Example response based on a school-based handmade greeting cards enterprise:

In our enterprise project, we produced personalised greetings cards for school events. To find out customer preferences and price sensitivity, we considered two primary market research methods: printed questionnaires and a focus group.

Method 1: Questionnaires / Surveys
An advantage of using questionnaires distributed during tutor time was that they allowed us to collect quantitative data from a large sample of 50 potential student and teacher customers quickly and at virtually no cost, since we printed them using school paper quotas. This enabled us to identify the most popular card themes and establish that a price point of $2.00 was acceptable to 78% of respondents.
However, a significant disadvantage was the low response quality and non-response bias. Many students rushed through the multiple-choice questions without reading them properly or left open-ended feedback blank, meaning we lacked detailed insight into specific customisation requests. Additionally, collating and tallying 50 paper surveys took several hours of valuable planning time.

Method 2: Focus Group
An advantage of holding a focus group with six students from different year groups was the ability to obtain detailed qualitative feedback and observe immediate reactions to physical card prototypes. Participants handled sample cardstock and provided creative suggestions on glitter finishes and calligraphy fonts that we had not originally considered, directly improving product design.
On the other hand, the disadvantage of the focus group was that it was difficult to coordinate a suitable time after school, and one dominant participant influenced the opinions of quieter members, which may have skewed our findings. Furthermore, the small sample size of six meant the qualitative findings were not statistically representative of the wider school community.

In conclusion, while questionnaires provided broad, quantifiable data on pricing and demand volume, the focus group gave deeper qualitative insights that refined our product quality, making both methods complementary for our enterprise.

Marking Grid (10 marks total):

Level 3 (8–10 marks): Candidate demonstrates developed analysis of both advantages and disadvantages for two methods of primary market research, fully contextualised in their own enterprise project. At the top of the level (10 marks), both sides (advantages and disadvantages) are thoroughly analysed for both methods with clear reference to real project outcomes, data, or product constraints.

Level 2 (4–7 marks): Candidate applies knowledge of primary market research methods to their own enterprise project. They explain advantages and/or disadvantages of the methods in relation to their project. (4–5 marks for basic application/explanation of one or two methods; 6–7 marks for applied analysis of advantages and disadvantages).

Level 1 (1–3 marks): Generic enterprise knowledge demonstrated. Candidate identifies or describes primary market research methods (e.g. questionnaires, interviews, focus groups) and lists general benefits/drawbacks without effective application to their own project.

Level 0 (0 marks): No creditable response.

Guidance on Content:
- Primary market research methods include: questionnaires/surveys (online or paper), face-to-face interviews, focus groups, observation, product trials/tasting sessions.
- Potential advantages to analyse: up-to-date, directly relevant to specific target market/product, confidential, provides quantitative or in-depth qualitative data.
- Potential disadvantages to analyse: time-consuming to design/conduct/analyse, potential interviewer bias or peer pressure, cost of printing/materials, risk of low response rate or unrepresentative sample size.

An exemplar response based on a school-based enterprise project (e.g. selling custom handmade greeting cards):

In our enterprise project selling handmade greeting cards, our primary aims were to raise awareness among students and teachers, achieve sales revenue of at least $120, and generate a net profit margin of 40%.

Method 1: Social Media (Enterprise Instagram Page)
We created a dedicated Instagram page featuring photographs of the card designs, video reels showing the production process, and price lists.
- Advantages & Effectiveness: It was completely free to set up, keeping our marketing costs at zero and protecting our profit margins. Furthermore, it had high engagement among the student body, allowing potential buyers to direct message custom orders in advance. This generated 35 pre-orders before trading day.
- Drawbacks: It did not effectively reach the teachers or older school staff, who were a key segment with higher disposable income and who rarely used Instagram during school hours.

Method 2: Posters placed around the school
We designed and printed 15 full-colour A4 posters placed on noticeboards in common areas, the school library, and the staff room.
- Advantages & Effectiveness: The posters provided constant visual visibility across the whole school community, effectively capturing the attention of teachers in the staff room. Over 40% of our recorded on-the-day sales were to teachers who cited seeing the staff room poster.
- Drawbacks: Printing the posters in colour cost $6.00, which added to our fixed costs. In addition, two posters were taken down or covered up by other notices, reducing their effectiveness over time.

Evaluation / Conclusion:
Overall, social media was the more effective marketing communication method for our enterprise. Although the posters successfully captured the teacher market, Instagram had zero financial cost and directly drove over 60% of our total volume through pre-orders, significantly reducing our inventory risk and ensuring we met our break-even target before production was even finished. Posters were a helpful secondary method, but social media was the decisive factor in exceeding our sales target of $120.

Levels of response marking grid:

Level 4 (12–15 marks):
Candidate offers a two-sided reasoned evaluation of both marketing communication methods, firmly grounded in specific details of their own enterprise project (e.g. actual costs, target audience reached, sales figures, conversion rates). There is a clear, supported judgment explaining why one method was more effective than the other in meeting enterprise aims.

Level 3 (8–11 marks):
Candidate provides developed analysis of the effectiveness/pros/cons of the marketing communication methods in the context of their own enterprise project. Points are linked clearly to outcomes such as sales, cost, customer awareness, or profit.

Level 2 (4–7 marks):
Candidate applies knowledge to their own enterprise project by describing or explaining the use, benefits, or limitations of one or two marketing communication methods. Application is evident but analysis of impact on aims remains limited.

Level 1 (1–3 marks):
Candidate demonstrates basic knowledge of marketing communication methods (AO1) with minimal or no relevant application to their own enterprise project.

Note: Candidates who only evaluate one method cannot achieve above Level 3 (max 8 marks). Candidates who make no reference to their own enterprise project cannot achieve above Level 1.

Example answer based on an enterprise project selling personalised tote bags:

In our enterprise, our aims were to raise awareness within the local school community and sell 50 bags to generate at least $75 profit.

Method 1: Social Media (Instagram Campaign)
We posted digital mock-ups and behind-the-scenes production videos on a dedicated Instagram page.
- Advantages: It had zero direct cost, which kept total costs low and maximised our profit margin. It allowed direct interaction via direct messages, leading to 28 advance orders from students.
- Disadvantages: It excluded parents and staff members who do not actively use Instagram.

Method 2: Leaflets distributed during morning registration
We printed 100 black-and-white promotional flyers containing an order form and pricing details.
- Advantages: Reached all tutor groups directly, ensuring coverage of students who were not active on social media.
- Disadvantages: Printing cost $5.00, and many flyers were discarded or misplaced, resulting in only 8 returned order forms.

Evaluation and Justification:
Social media was substantially more effective. While leaflets ensured blanket physical distribution, their conversion rate was poor (8%) and they incurred printing costs. In contrast, Instagram cost nothing, reached our exact target demographic, and generated over 55% of our total unit sales, directly ensuring we surpassed our profit target.

Levels of response marking grid:
- Level 4 (12–15 marks): Two-sided reasoned evaluation of both marketing communication methods with sustained application to the candidate's own enterprise project. Clear, justified conclusion choosing the more effective method and explaining why the other was less successful.
- Level 3 (8–11 marks): Developed analysis of the effectiveness (positive/negative impacts on enterprise aims/outcomes) of both methods in the context of their own enterprise project.
- Level 2 (4–7 marks): Application to the enterprise project with simple explanation of advantages/disadvantages of the methods used.
- Level 1 (1–3 marks): Generic knowledge of marketing communication methods with little or no application to the candidate's own enterprise.