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Internal and external communication · IGCSE Business

Cambridge 0450, Paper 1 & 2. 1,484 questions, 2019 to 2026.

Topic
Year

Every question begins with its business context — a short case for Paper 1, a full case study (shared across all four questions on that paper) for Paper 2. Mark schemes show the typed marking points alongside a cropped image of the official mark scheme page for exact wording.

About Internal and external communication

Why effective communication matters, methods of communication, and barriers to effective communication inside and outside the business.

35 past paper questions on this topic since 2019, across 20 exam sessions.

How often it comes up

YearPaper 1Paper 2TotalChart
2026202
2025224
2024415
2023336
2022325
2021415
2020404
2019314

Every 2025–2026 question on Internal and external communication

The whole topic on one page, with answers and mark schemes. Printing this page prints just this list.

Paper 1 · Short answer and structured (4)

Scenario

CNR is a bank in country X. It is a private limited company. One of CNR’s business objectives is growth and the directors are planning to merge the bank with one of its competitors. This decision will affect many stakeholder groups. After the merger, CNR will have 8000 branches and 36000 employees. The managing director knows she will have to find a suitable method of communication to inform CNR’s employees about the merger.

Question 3(d)May/Jun 20260450/136 marks

Explain two methods of communication CNR could use to inform its employees about the merger. method 1 explanation method 2 explanation

Show mark scheme

Explain two methods of communication CNR could use to inform its employees about the merger. Award 1 mark for identification of each relevant method (max 2). Award 1 mark for each relevant reference to this business (max 2). Award 1 mark for each relevant explanation (max 2). Points might include:

  • Email [k] the 36 000 employees [app] as can send to many people at once [an]
  • (Online/in person) meeting [k] at each of the 8000 branches [app] allowing everyone to discuss points / get feedback [an]
  • Video conference/Zoom/Teams/Google Meet/FaceTime [k] as people/attendees do not have to travel [an]
  • Phone calls [k] about its objectives [app]
  • Text/SMS/ WhatsApp/WeChat/(Facebook) messenger [k] which can be saved for future reference [an]
  • Letter [k] give a professional image/confidential [an]
  • Notice/noticeboard/poster [k] as they can be placed in various locations (for employees to read) [an]
  • Website/social media or examples e.g. Facebook, TikTok [k]
  • Internal newspapers/newsletter/magazine [k] Other appropriate responses should be credited.
Mark scheme, 0450/13 May/Jun 2026 question 3(d)
Scenario

LMB provides healthcare services for people aged 70 years and above. It is a large public sector business which is continuing to grow. The human resources manager has started the recruitment process for 500 additional employees. He is also planning on-the-job training for all LMB’s employees. The business uses email as its main method of communication. The human resources manager knows that there are many benefits to a business of having a well-motivated workforce.

Question 2(e)Feb/Mar 20260450/126 marks

Do you think using email is the best method for a business to use to communicate with its employees? Justify your answer.

Show mark scheme

Do you think using email is the best method for a business to use to communicate with its employees? Justify your answer. Award 1 mark for each relevant point (max 2). Award 1 mark for each relevant explanation (max 2). Award up to 2 marks for justified decision as to whether email is the best method for a business to use to communicate with its employees (max 2). Points might include:

  • No/low cost [k] so (more) funds to invest in other areas of the business [an]
  • Can refer to [k] so less chance of misunderstanding [an]
  • Can be sent to multiple people at the same time / quick (to send) [k] which saves time [an]
  • Can include attachments/large amounts of information [k]
  • Might be deleted/ignored [k] so receiver is not able to access message [an]
  • People may not have access to email/device [k] so message may not reach receiver / so message is not seen [an]
  • Not able to gain immediate feedback [k] so do not know if message has been understood [an]
  • Possible internet/technical problems [k]. Other methods of communication include:
  • Meetings [k] allow for feedback / two-way communication [an] AND/OR can see body language [an]
  • Text messages/SMS/DM/WhatsApp [k] which are quick to send [an]
  • Website/social media [k] as seen by many people at once [an]
  • Letters [k] can be confidential [an]
  • Phone/mobile calls [k] as can discuss message to make sure it is understood [an]
  • Video conference [k] which can reduce travel costs [an]
  • Memo [k] which can provide a written record [an]. Other appropriate answers should be credited. Justification might include: Using emails is low cost [k] so more funds to invest in other areas [an]. Using meetings [k] allows for instant feedback [an]. Meetings are the best method as instant feedback can prevent misunderstanding which helps to avoid mistakes [eval] that could damage the reputation of the business [eval]. Answer
Mark scheme, 0450/12 Feb/Mar 2026 question 2(e) (page 1 of 2)
Mark scheme, 0450/12 Feb/Mar 2026 question 2(e) (page 2 of 2)
Scenario

MHL manufactures tyres for large vehicles. It has factories in 6 countries. The business creates
external costs when producing its products. Good communication with MHL’s suppliers is important.
The Managing Director knows globalisation provides many opportunities for MHL. She is reviewing
data for one of MHL’s factories as she wants to reduce the average cost of the tyres. An extract
from this data is shown in Table 4.1.
Table 4.1
Data for one of MHL’s factories
Output per month (units) 200000
Fixed costs per month $500000
Variable cost per unit $25

Case material
Question 4(e)May/Jun 20250450/126 marks

Explain two methods of communication a business could use to communicate with its suppliers. Which is likely to be the best method to use? Justify your answer.

Show mark scheme

Explain two methods of communication a business could use to communicate with its suppliers. Which is likely to be the best method to use? Justify your answer. Award up to 2 marks for identification of relevant points. Award up to 2 marks for relevant development of points. Award up to 2 marks for a justified decision as to which is the best method of communication for a business to use when communicating with its suppliers. Points might include:

  • Email [k] can be saved for future reference [an]
  • Phone/telephone calls [k] as these allow for (immediate) feedback [an]
  • (Online) meeting [k] allows everyone to discuss points/ask questions [an]
  • Video conference/Zoom/Teams/Google Meet/FaceTime [k] as people do not have to travel [an]
  • Text/SMS/WhatsApp/WeChat/(Facebook) messenger [k] but can contain limited information [an]
  • Letter [k] but time consuming to write/expensive to send [an]
  • Websites [k] but no feedback/one way communication [an] Other appropriate responses should also be credited. Justification might include: One method is a meeting [k] allows everyone to discuss points at the same time [an]. Another option is an email [k] because it is quick to send [an]. Email is a better method because it could allow the business to get the inventory it needs in a timely manner whereas the meeting could take too long to arrange [eval], and while waiting the business may have to stop production temporarily [eval].
Mark scheme, 0450/12 May/Jun 2025 question 4(e) (page 1 of 2)
Mark scheme, 0450/12 May/Jun 2025 question 4(e) (page 2 of 2)
Scenario

HYT is a travel business which sells holidays. One of its objectives is growth. Last year HYT completed a takeover of one of its competitors. External sources of finance were used to fund this growth. HYT now has 460 shops and 4000 employees. The Human Resources Director knows there are benefits and limitations for a business of having full-time employees. HYT’s managers use ideas from Herzberg’s motivational theory to keep employees motivated. Good internal communication is important for HYT.

Question 4(d)May/Jun 20250450/136 marks

Explain two methods of internal communication HYT might use with its employees. Method 1: Explanation: Method 2: Explanation:

Show mark scheme

Explain two methods of internal communication HYT might use with its employees. Award 1 mark for identification of each relevant method (max 2). Award 1 mark for each relevant reference to this business (max 2). Award 1 mark for each relevant explanation (max 2). Points might include:

  • Meetings/team briefings [k] about its growth objective [app] as can get (instant) feedback / ask / answer questions [an]
  • Email [k] which can be sent to multiple people (at the same time) [an] to its 4000 employees [app]
  • Phone/mobile calls [k] to one of its 460 shops [app] as allows for discussion / explanation / immediate feedback [an]
  • Letter [k] as a written record [an]
  • Text / SMS / WhatsApp / WeChat [k] as can be sent quickly [an]
  • Posters / noticeboards / notices [k] as they can be placed in various locations (for employees to read) [an]
  • Video conference / Zoom / Teams / Google Meet / FaceTime [k]
  • Social media or examples e.g. Facebook, TikTok [k]
  • Internal newspapers / newsletter / magazine [k] Other appropriate responses should be credited.
Mark scheme, 0450/13 May/Jun 2025 question 4(d)

Paper 2 · Case study (2)

Case study: Luxury Bathrooms (LB)

LB is a large private limited company. The business was started 20 years ago in country X. LB manufactures luxury bathroom products including baths, showers and basins, which it sells to specialist retail shops. The Managing Director knows that working capital is important. LB has recently introduced new machinery into its factory. The business has continued to grow each year and has benefited from economies of scale including financial, purchasing and managerial. The market for luxury bathrooms is very competitive in country X. LB plans to produce a new range of bathroom products. It is using primary market research to decide which products to manufacture. LB also needs to choose which channel of distribution to use. It could sell the new range of bathroom products to the same specialist retail shops as its existing products, or sell directly to customers through its website. LB currently uses its website to provide information and does not sell its products through it. LB wants to enter the luxury bathroom market in country Y. It plans to build a factory in country Y in 2026. LB will probably use a bank loan to finance the building of the factory. LB needs to communicate the expansion plans to all of its employees. Choosing the most suitable method of communication will be important.

Appendix 1
Appendix 2

Appendix 3 — referenced by Q4(b)

Newspaper article from City News in country Y, September 2025 The economy in country Y is growing and consumer incomes are rising. This is causing an increase in demand for luxury items for the home which is forecast to continue. There are many local businesses manufacturing bathroom products. The government is aware that multinational companies are considering locating factories in country Y. There are both benefits and drawbacks to country Y of allowing businesses from other countries to build their factories here.

---

Question 4(a)Oct/Nov 20250450/218 marks

Explain two factors LB’s managers should consider when deciding which method of communication to use to inform its employees about the expansion plans. Factor 1: Explanation: Factor 2: Explanation:

Show mark scheme

Explain two factors LB’s managers should consider when deciding 8 which method of communication to use to inform employees about the expansion plans. Award 1 mark for each relevant factor (max 2). Award a maximum of 3 additional marks for each explanation of the factor that LB’s managers should consider when deciding which method of communication to use with employees about the expansion plans – one of which must be applied to this context. Relevant factors might include:

  • How many employees need to be informed – a large number of employees need to see the information – as everyone will be affected by the expansion
  • If feedback is needed – managers will know the message has been received – to make sure all employees understand what it will mean for their job role
  • How much information needs to be included in the message / complexity of the message – if it is a lot of information then a written form of communication should be used – such as an email or letter
  • If there is need for a written record – as legally a record may be needed for certain types of communication with employees – then there will be communication that can be referred to at some time in the future
  • Speed / urgency / importance of communication – employees need to be told quickly before rumours are spread around the factory
  • Cost of the communication methods chosen For example: How many employees need to be informed (1). A large number of employees will need to see the information (1) as everyone will be affected by the expansion plans (1) when building the new factory in country Y (app). Application could include: luxury bathroom products; baths/basins/showers; plan to produce a new range of bathroom products; plans to open a factory in another country; sells in specialist retail shops; website contains information on product range.
Mark scheme, 0450/21 Oct/Nov 2025 question 4(a)
Case study: Fun Florals (FF)

FF is a small business owned by Kathryn. It has 2 small shops in Main City which sell wedding flowers. Each shop has 4 employees. FF has a good reputation for providing high-quality flower arrangements. Most flower shops provide flowers for many occasions, but FF operates in a niche market as it only provides flowers for weddings. The average price customers pay for FF’s wedding flowers is $2000. Kathryn buys flowers from her suppliers every day to ensure that the flowers are fresh and last a long time. She has a good relationship with her suppliers who provide the flowers and other items such as ribbons and packaging materials. Kathryn knows that communication with her suppliers is important. She uses job production for each customer’s order. Kathryn wants to open a larger third shop in the centre of Main City and has written a business plan. She is considering which marketing mix to use for this new shop. FF will need finance for working capital. Kathryn has the choice of using either a bank overdraft or trade credit. Kathryn wants FF to contribute to sustainable development. Many of her customers have told her they are concerned about global warming. Appendix 3 shows information about two ways Kathryn could use to contribute to sustainable development.

Appendix 1

Appendix 2 — referenced by Q2(b)

Email to Kathryn from FF’s Marketing Assistant To: Kathryn From: Marketing Assistant Date: 1 October 2025 Hi Kathryn I have outlined a possible marketing mix for the new larger shop in the centre of Main City. Let me know what you think.

  • Price – using cost-plus pricing for the wedding flowers as we know not all flowers cost the same.
  • Place – selling some of our flowers through wedding planners (businesses which plan weddings for customers).
  • Promotion – using television advertising.
Appendix 3
Question 1(b)Oct/Nov 20250450/2212 marks

Consider the following two methods Kathryn could use to communicate with her suppliers. Which method should Kathryn use if an order is needed quickly? Justify your answer.

  • Telephone calls
  • Emails Telephone calls: Emails: Recommendation:
Show mark scheme

Consider the following two methods Kathryn could use to communicate 12 with her suppliers. Which method should Kathryn use if an order is needed quickly? Justify your answer.

  • Telephone calls
  • Emails Level Description Marks 3 Sound application of knowledge and understanding of 9–12 relevant business concepts using appropriate terminology. Detailed discussion of both methods. Well-justified recommendation. Candidates discussing both methods, in context and with a well-justified recommendation, including why the alternative method was rejected, should be rewarded with the top marks in the band. 2 Sound application of knowledge and understanding of 5–8 relevant business concepts using appropriate terminology. Detailed discussion of at least one method. Judgement with some justification / some evaluation of choice made. Candidates discussing at least one method in detail and applying it to the case should be rewarded with the top marks in the band. 1 Limited application of knowledge and understanding of 1–4 relevant business concepts. Limited ability to discuss the methods with little/no explanation. Simple judgement with limited justification / limited evaluation of choice made. Candidates outlining both methods in context should be rewarded with the top marks in the band. 0 No creditable response. 0 Relevant points might include: Advantages Disadvantages Telephone calls • Speaks directly to each • Suppliers may not supplier of ribbons – answer – delay in gets immediate order being taken – feedback – so knows the delivery of flowers message has been may be delayed – received which slows
  • Can verify if the production and may message for the order be late being of fresh flowers is delivered to a understood – answer wedding questions about the • Poor connection orders – to ensure the over the network correct flowers are used – may distort delivered – possibly the message and meeting customer make it difficult to orders more quickly understand –
  • Know the message has resulting in wrong been received – with order being made – having a good which may lead to relationship with the under or over supplier which means ordered flowers they will answer and • Could take a long take the order time to call suppliers – may not answer straight away and may need to call several times taking time that could be used for something else
  • No permanent record of the conversation – if an incorrect order is made there is no proof the supplier made a mistake Advantages Disadvantages Emails • Provides a written • Some suppliers record for FF to refer to may not have – if the suppliers do not access to a reliable meet the order correctly internet connection and the wrong flowers – so FF may not are delivered know the order for
  • Can be referred to at ribbons has not different times to check been received on the amount of • The order may not perishable supplies be seen if there are ordered to ensure the too many emails to correct order is delivered read and get lost or on the correct date missed
  • Kathryn does not have • May go into junk – to be in the office to so supplier of send the order – can be packaging is sent out of usual office unaware there is an hours – may be more order convenient especially as FF is a small business Recommendation Justification might include:
  • A telephone call should be made if the order for ribbons is needed quickly to ensure the message is received. Feedback can clarify that the correct order has been made. An email may get lost amongst many emails and the urgency may not be realised, therefore making the order late being processed and delivery of the flower arrangements for the wedding being delayed.
  • An email should be used as it is sent straight away, and the supplier of fresh flowers can reply letting FF know that the order has been received and if it can be dispatched straight away.
Mark scheme, 0450/22 Oct/Nov 2025 question 1(b) (page 1 of 3)
Mark scheme, 0450/22 Oct/Nov 2025 question 1(b) (page 2 of 3)
Mark scheme, 0450/22 Oct/Nov 2025 question 1(b) (page 3 of 3)

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  • 0450/12 · May/Jun 2024 · Question 3(d)Explain two methods of IT based communication… 🔒
  • 0450/13 · May/Jun 2024 · Question 4(c)Identify four reasons why effective internal communication… 🔒
  • 0450/23 · May/Jun 2024 · Question 4(b)Consider the following three methods Santhosh could… 🔒
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IGCSE Business questions by topic

Each topic opens this practice tool with only that topic’s questions, plus how often it comes up and every question on it in one list.

  1. Ch 1Business activity
  2. Ch 2Classification of businesses
  3. Ch 3Enterprise, business growth and size
  4. Ch 4Types of business organisation
  5. Ch 5Business objectives and stakeholder objectives
  6. Ch 6Motivating employees
  7. Ch 7Organisation and management
  8. Ch 8Recruitment, selection and training of employees
  9. Ch 9Internal and external communication
  10. Ch 10Marketing, competition and the customer
  11. Ch 11Market research
  12. Ch 12The marketing mix: product
  13. Ch 13The marketing mix: price
  14. Ch 14The marketing mix: place
  15. Ch 15The marketing mix: promotion
  16. Ch 16Technology and the marketing mix
  17. Ch 17Marketing strategy
  18. Ch 18Production of goods and services
  19. Ch 19Costs, scale of production and break-even analysis
  20. Ch 20Achieving quality production
  21. Ch 21Location decisions
  22. Ch 22Business finance: needs and sources
  23. Ch 23Cash flow forecasting and working capital
  24. Ch 24Income statements
  25. Ch 25Statement of financial position
  26. Ch 26Analysis of accounts
  27. Ch 27Economic issues
  28. Ch 28Environmental and ethical issues
  29. Ch 29Business and the international economy