Edexcel IGCSE Business: Command words and keywords

Pearson Edexcel International GCSE Business (4BS0/4BS1) includes a Command Word Taxonomy in Appendix 2 of the specification. Command words indicate which Assessment Objective (AO) is being tested: AO1 (knowledge), AO2 (application), AO3 (analysis), AO4 (evaluation). “State” tests lower-order recall; “Justify” tests AO2, AO3 and AO4 and requires extended answers with recommendations.

Command words in Edexcel Business

Command word	What to do	AO tested	Common mistake
State	Recall; short answer	AO1	Overwriting
Identify	Choose from case study	AO1	Adding explanation
Define	Precise business meaning	AO1	Vague
Describe	What happens; no “why”	AO1	Adding explanation
Explain	Why or how; use “because”	AO1/AO2	Only describing
Suggest	Apply to case study; propose	AO2	Generic answer
Compare	Similarities and differences	AO3	Listing separately
Analyse	Break down; show relationships	AO3	Only describing
Evaluate	Judge; conclude with evidence	AO4	No conclusion
Assess	Judge importance; conclude	AO4	Description only
Discuss	Explore aspects; conclude	AO3/AO4	One-sided
Justify	Support recommendation with evidence from case study	AO2, AO3, AO4	Unsupported claim
Calculate	Work out; show working	AO1	Missing working
Recommend	Propose course of action	AO2, AO3, AO4	No justification

Justify: extended response

Justify indicates testing of AO2 (application), AO3 (analysis) and AO4 (evaluation). You must write an extended answer using the provided information to recommend business options and support your recommendation with evidence. This is a high-mark question type.

Business keywords examiners look for

Enterprise and structure

Term	Use correctly	Avoid
Entrepreneur	Takes risk to start business	”Owner”
Primary sector	Raw materials	”Farming”
Secondary sector	Manufacturing	”Factories”
Tertiary sector	Services	Secondary
Sole trader	One owner; unlimited liability	”Small business”
Partnership	2–20 owners	Sole trader
Private limited	Ltd; shares not on exchange	Plc
Public limited	Plc; shares on exchange	Ltd
Stakeholder	Interested party	Shareholder only
Shareholder	Owner of shares	Stakeholder
Franchise	Right to use name and system	”Branch”

Finance

Term	Use correctly	Avoid
Working capital	Current assets − current liabilities	”Cash”
Current assets	Cash, stock, debtors	Fixed assets
Current liabilities	Debts due within one year	Long-term
Break-even	Output where TR = TC	”No profit”
Fixed costs	Do not vary with output	Variable
Variable costs	Vary with output	Fixed
Contribution	SP − VC per unit	”Profit”
Cash flow	Movement of cash	Profit
Added value	SP − cost of bought-in materials	”Profit”
Profit	Revenue − total costs	”Money made”
Gross profit	Revenue − cost of sales	Net profit
Net profit	Gross profit − expenses	Gross profit
Retained profit	Profit kept in business	”Savings”
Liquidity	Ability to pay short-term debts	”Having cash”
Overdraft	Negative balance; short-term	Loan

Marketing and operations

Term	Use correctly	Avoid
Market research	Collecting market information	”Survey”
Primary research	First-hand data	Secondary
Secondary research	Already-collected data	Primary
Target market	Specific group aimed at	”Everyone”
Marketing mix	Product, Price, Place, Promotion	”4 Ps” only
Division of labour	Specialisation in tasks	Specialisation
Productivity	Output per worker	”Efficiency”
Quality	Meeting expectations	”Good”
Motivation	Willingness to work	”Pay”
Recruitment	Hiring process	”Hiring”
Redundancy	Job no longer needed	Dismissal
Dismissal	Firing for conduct/performance	Redundancy

Edexcel marking principles

• Apply positively—reward what candidates show.
• Assessment Objectives—command words signal which AO is tested.
• Justify—extended answer; use case study; recommend; support with evidence.
• Mark allocation—use as guide for depth required.

What examiner reports highlight

• Define—precise definitions; avoid confusion.
• Application—link to case study; use provided information.
• Justify—extended; recommendation + evidence.
• Evaluate—conclusion with justification.
• Answer the question—address what is asked.

Tips for Edexcel Business 4BS0/4BS1

1. Underline the command word before answering.
2. Check the AO—State = recall; Justify = extended application + analysis + evaluation.
3. Use the case study for application and justification.
4. Recommend and justify when asked—don’t just describe.
5. Reach a conclusion for Evaluate, Assess, Discuss.
6. Past papers + mark schemes show acceptable wording.

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Based on Pearson Edexcel International GCSE Business specification. Check the latest specification for your exam series.

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