LNF Cymru Literacy and numeracy for Wales

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GCSE Business

GCSE Business asks learners to calculate and interpret costs, revenue, profit, break-even, cashflow forecasts and profit margins, and to collect, present and judge market research data in two NEA reports worth 40% together. Literacy centres on reading business sources, using business terms precisely and writing reasoned judgements in extended answers and reports. The single biggest thing Key Stage 3 should build is confidence with money calculations in a business setting, followed by a written sentence saying what the answer means for the business.

Awarding body
WJEC
Level
Level 1 and Level 2
First taught
September 2025
Amount of literacy work
Medium
Amount of numeracy work
High
Specification
Open the specification
How this qualification is assessed
  • Unit 1: Introduction to the Business World: Written examination 1 hour 15 minutes, 30%, 60 marks
  • Unit 2: Key Business Considerations: NEA 5 hours, 15%, 48 marks, set and marked by WJEC
  • Unit 3: Business Strategies for Success: Written examination 1 hour 15 minutes, 30%, 60 marks
  • Unit 4: Business Creation: NEA 8 hours, 25%, 60 marks, set by WJEC, marked by the centre and moderated by WJEC

The literacy and numeracy skills in this qualification

  1. Extended evaluative writing on business issues

    Assessed: In the exam and in coursework (NEA)

    Learners write short and extended answers that apply knowledge to business situations and reach judgements. AO3 (analyse, evaluate, judge) is 25% of the qualification across all four units.

    Literacy: Planning and organising for different purposes, audiences and context, Connectives and syntax

    Getting pupils ready

    Year 7
    Pupils write one paragraph explaining whether a new café would do well on Aberdare's Commercial Street, using 'because' and 'therefore' to link each reason to a result.
    Year 8
    Pupils write a two-sided answer on whether a local bakery should switch to eco-friendly packaging, giving an advantage, a disadvantage and a final judgement.
    Year 9
    Pupils answer a 'recommend' question on a short case study of a Rhondda Cynon Taf business, weighing two options against its aims and justifying one in a conclusion.
    Show the specification wording and the LNF statements

    Where it is in the specification: Section 3.1 Assessment objectives, AO3, page 39

    “Analyse, evaluate, or make judgements on business issues using business concepts, theories, and business data”
    Progression step 3

    • I can adapt my writing style and structure to suit the audience, purpose and context, e.g. suitable balance between facts and viewpoints, a precise conclusion.

    • I can use paragraphs and make links between them.

    • I can use an increasing range of connectives to organise my ideas in sentences, paragraphs and whole texts.

    Progression step 4

    • I can use summary, discussion of issues, detailed explanations and logic when covering a topic.

    • I can organise and construct my writing effectively, connecting and developing my ideas for a range of different contexts.

    • I can use a range of connectives specifically when organising my ideas in whole texts for different purposes.

    Progression step 5

    • I can write extended pieces which include detailed evidence and information for different purposes and audiences within and across different disciplines.

    • I can organise writing in an appropriate form, ensuring content is detailed within and between paragraphs or sections, developing and sustaining ideas coherently.

  2. Business vocabulary used precisely

    Assessed: In the exam

    Learners must show knowledge of business terms, concepts and theories (AO1, 25% overall) and use terms such as contribution, net cashflow and gross profit margin accurately.

    Literacy: Vocabulary, spelling, grammar

    Getting pupils ready

    Year 7
    Pupils build a word wall of ten business words such as profit, customer and entrepreneur, and use each one in a sentence about a shop they know in Aberdare.
    Year 8
    Pupils match terms such as fixed cost, variable cost and revenue to definitions and examples from a school enterprise, then spell them correctly in a short quiz.
    Year 9
    Pupils answer 'what is meant by' questions on terms such as market share and cashflow in one precise sentence each, adding a local business example.
    Show the specification wording and the LNF statements

    Where it is in the specification: Section 3.1 Assessment objectives, AO1, page 39

    “Demonstrate knowledge and understanding of business terms, concepts, and theories”
    Progression step 3

    • I can use varied, appropriate and precise vocabulary including area of learning and experience/discipline-specific words for different purposes.

    • I can use strategies to correctly spell polysyllabic, complex and irregular words in the context of each area of learning and experience.

    Progression step 4

    • I have experienced a range of area of learning and experience/discipline-specific and general academic vocabulary, and can use them in my own communication.

    • I can use a variety of strategies and resources to spell familiar and unfamiliar vocabulary and area of learning and experience/discipline-specific words correctly.

    Progression step 5

    • I can use a range of discipline-specific and general academic vocabulary accurately and precisely.

    • I can use strategies to spell discipline-specific and general academic words in appropriate contexts.

  3. Researching and reading business sources

    Assessed: In coursework (non-examination assessment, NEA)

    Learners undertake primary and secondary research on a business in their locality and use the findings in a report. Secondary sources named include newspapers, trade publications, government sources and the internet.

    Literacy: Understanding, response and analysis

    Getting pupils ready

    Year 7
    Pupils scan a local news article about a new Aberdare business and highlight three facts and one opinion.
    Year 8
    Pupils compare a local shop's own website with a newspaper report about it and note which is more reliable and why.
    Year 9
    Pupils research one business in Aberdare using two secondary sources and a short interview, recording each source in a research log.
    Show the specification wording and the LNF statements

    Where it is in the specification: Section 3.2 Arrangements for non-examination assessment, Unit 2, page 40

    “Learners will be required to undertake research on their chosen business and to use their research findings to produce a report.”
    Progression step 3

    • I can make use of reference/digital sources to select, summarise and synthesise information, referencing as appropriate.

    • I can collate and make connections, e.g. prioritising, categorising, between information and ideas from different sources including digital and audio-visual texts.

    Progression step 4

    • I can research a wide range of reference and digital sources to develop a full understanding of a topic or issue.

    • I can evaluate the usefulness and reliability of texts.

    Progression step 5

    • I can independently research a wide range of sources to develop an understanding of an increasingly complex topic or issue.

    • I can use printed and digital texts to search selectively, assessing the reliability, significance and accuracy of what I find.

  4. Planning and redrafting a business report

    Assessed: In coursework (non-examination assessment, NEA)

    In Unit 4 learners plan an entrepreneurial activity and write a report covering the proposal, completed over 8 hours in one or several sessions. Unit 2 is also a report written over 5 hours.

    Literacy: Planning and organising for different purposes, audiences and context, Proofreading, editing and improving

    Getting pupils ready

    Year 7
    Pupils plan a one-page proposal for a new tuck shop product under the headings product, price and target customers.
    Year 8
    Pupils draft a short report on a mini-enterprise stall, then redraft it after peer feedback, checking the spelling of key business terms.
    Year 9
    Pupils write a sectioned report on a Christmas enterprise project over several lessons, keeping a plan and redrafting each section against a checklist.
    Show the specification wording and the LNF statements

    Where it is in the specification: Section 3.2 Arrangements for non-examination assessment, Unit 4, page 40

    “use the research to produce a report that covers key aspects of their proposal.”
    Progression step 3

    • I can explore different ways to plan, draft and present my work appropriately.

    • I can use and adapt different structures within my writing, e.g. reporting an event, investigation or experiment.

    • I can reflect on, edit and redraft to improve the quality of my expression, and use a range of strategies to ensure greater clarity.

    Progression step 4

    • I can select and use appropriate strategies to plan and develop my writing for different purposes and audiences.

    • I can use paragraphs and sections to give coherence to longer pieces of writing.

    • I can improve writing through independent review and redrafting.

    Progression step 5

    • I can select and use appropriate strategies to plan and develop my writing for a challenging range of different purposes and audiences.

    • I can improve the content, structure and accuracy of my writing through critical reflection, review and editing, responding constructively to feedback.

  5. Costs, revenue, profit and break-even

    Assessed: In the exam and in coursework (NEA)

    Learners calculate and interpret total costs, total revenue and profit or loss, and calculate break-even using the contribution method (fixed costs divided by contribution per unit). Unit 4 also requires calculating costs, revenues and profit for a proposal.

    Numeracy: Financial literacy, Calculation, Strategic competence, Conceptual understanding, Logical reasoning

    Getting pupils ready

    Year 7
    Pupils work out the profit or loss on a class cake sale from ingredient costs and takings and say whether it was worth running.
    Year 8
    Pupils sort a school enterprise's costs into fixed and variable, then calculate total cost and profit for 50 and for 100 items sold.
    Year 9
    Pupils calculate how many hot chocolates a Year 9 stall must sell to break even by dividing fixed costs by contribution per cup, then check the answer in a table.
    Show the specification wording and the LNF statements

    Where it is in the specification: Unit 1, Section 1.7.3 Break-even and contribution, page 18

    “Learners should be able to calculate and interpret break-even through the contribution method.”
    Progression step 3

    • I can use profit and loss in buying and selling calculations.

    • I can divide 3-digit numbers by a 2-digit number.

    • I can prioritise and organise the relevant steps needed to complete the task or reach a solution.

    Progression step 4

    • I can recognise, model and apply the underlying mathematical structures and ideas within problems, in order to formulate and solve them.

    • I can use the four operations and the connections between them, e.g. apply division as the inverse of multiplication.

    • I can interpret answers within the context of the problem and consider whether answers, including calculator, analogue and digital displays, are sensible.

    Progression step 5

    • I can recognise, model and apply the underlying mathematical structures and ideas within problems, in order to formulate and solve them.

    • I can justify my procedures, predictions and conjectures.

    • I can interpret answers within the context of the problem and consider whether answers, including calculator, analogue and digital displays, are sensible.

  6. Income statements and profit margins

    Assessed: In the exam

    Learners calculate and interpret an income statement (gross profit, net profit) and the gross and net profit margin percentages to evaluate financial performance.

    Numeracy: Calculation, Relationships within the number system, The number system, Fluency, Conceptual understanding

    Getting pupils ready

    Year 7
    Pupils use a simple diagram to find what fraction and percentage of a £1 snack price covers costs and what is left as profit.
    Year 8
    Pupils express the profit on two tuck shop items as a percentage of each selling price and say which item earns more per pound.
    Year 9
    Pupils calculate gross profit, net profit and both profit margins from a simple income statement for a local café, then write one sentence on what the margins show.
    Show the specification wording and the LNF statements

    Where it is in the specification: Unit 3, Section 3.3.4 Financial performance, page 30

    “calculate and interpret profitability ratios to evaluate financial performance, including: • gross profit margin • net profit margin.”
    Progression step 3

    • I can calculate a percentage, fraction and decimal of any quantity with a calculator where appropriate.

    • I can use equivalence of fractions, decimals and percentages to compare proportions.

    • I can add and subtract numbers using whole numbers and decimals.

    Progression step 4

    • I can express one quantity as a percentage of another.

    • I can calculate a percentage increase or decrease.

    • I can choose the appropriate degree of accuracy to present answers.

    Progression step 5

    • I can use multipliers as an efficient method when working with percentages, e.g. multiply by 1.2 to increase an amount by 20%.

    • I can use a scientific calculator effectively and efficiently to carry out calculations using the available range of function keys.

    • I can interpret answers within the context of the problem and consider whether answers, including calculator, analogue and digital displays, are sensible.

  7. Cashflow forecasts

    Assessed: In the exam and in coursework (NEA)

    Learners calculate and interpret a cashflow forecast (revenue, expenses, net cashflow, opening and closing balance) and recommend improvements. Unit 4 requires creating a cash flow forecast for their own proposal.

    Numeracy: Financial literacy, Calculation, Communicating with symbols, Strategic competence, Conceptual understanding

    Getting pupils ready

    Year 7
    Pupils keep a four-week record of money in and out for a class enterprise, carrying each closing balance forward to the next week.
    Year 8
    Pupils complete a three-month cashflow table for a pop-up stall at Aberdare market, including a month with a negative balance, and suggest one fix.
    Year 9
    Pupils build a six-month cashflow forecast for a planned business from given figures and recommend two improvements where the closing balance goes negative.
    Show the specification wording and the LNF statements

    Where it is in the specification: Unit 3, Section 3.3.3 Cashflow and cashflow forecasts, page 30

    “calculate and interpret a cashflow forecast • recommend improvements to cashflow.”
    Progression step 3

    • I can plan and track money and savings by keeping accurate records.

    • I can add and subtract totals less than £100 using correct notation, e.g. £28.18 + £33.45.

    • I can realise that budgeting is important.

    Progression step 4

    • I can appreciate the basic principles of budgeting, saving (including understanding compound interest) and borrowing.

    • I can use efficient written methods to add and subtract numbers and decimals of any size, including a mixture of large and small numbers with differing numbers of decimal places.

    • I can refine methods of recording calculations.

    Progression step 5

    • I can prioritise and organise the relevant steps needed to complete the task or reach a solution.

    • I can refine methods of recording calculations.

    • I can interpret answers within the context of the problem and consider whether answers, including calculator, analogue and digital displays, are sensible.

  8. Collecting market research data

    Assessed: In coursework (non-examination assessment, NEA)

    Learners carry out primary and secondary market research, use an appropriate sample and design tools such as questionnaires and interview questions. Unit 2 also requires collecting qualitative and quantitative data.

    Numeracy: Collecting data, Strategic competence

    Getting pupils ready

    Year 7
    Pupils write five closed questions for a tally survey of their class's favourite snacks to decide what a tuck shop should stock.
    Year 8
    Pupils design a short questionnaire mixing closed and open questions about a new canteen product and trial it on another class.
    Year 9
    Pupils choose a sample of 30 people across year groups for a market research survey on a planned enterprise and explain why it matches the target market.
    Show the specification wording and the LNF statements

    Where it is in the specification: Unit 4, Section 4.2.3 Market research for entrepreneurial opportunities, page 37

    “use an appropriate sample • design and use appropriate market research tools to collect data for entrepreneurial opportunities, such as: • questionnaires”
    Progression step 3

    • I can collect relevant data to answer posed questions.

    • I can identify, measure or obtain required information to complete the task.

    Progression step 4

    • I can collect own data for a survey, e.g. through designing a questionnaire.

    • I can collect both quantitative and qualitative data.

    Progression step 5

    • I can collect data in a suitable way according to my hypothesis.

    • I can identify, measure or obtain required information to complete the task.

  9. Presenting business data in graphs and charts

    Assessed: In coursework (non-examination assessment, NEA)

    Learners present qualitative and quantitative data in appropriate formats, including graphs and charts of market research results, in both NEA units.

    Numeracy: Representing data

    Getting pupils ready

    Year 7
    Pupils turn their snack survey tally into a bar chart with a title and labelled axes.
    Year 8
    Pupils choose between a bar chart and a pie chart to show canteen survey results and justify the choice in one sentence.
    Year 9
    Pupils present market research results for their enterprise idea in two chart types with suitable scales, titles and a key.
    Show the specification wording and the LNF statements

    Where it is in the specification: Unit 4, Section 4.2.3 Market research for entrepreneurial opportunities, page 37

    “present data from market research data, including graphs and charts.”
    Progression step 3

    • I can select and construct appropriate charts, diagrams and graphs with suitable scales.

    • I can represent data using:

      • lists, tally charts, tables, diagrams and frequency tables
      • bar charts, grouped data charts, line graphs and conversion graphs
      • pictograms where one symbol represents more than one unit using a key
      • Venn and Carroll diagrams.
    Progression step 4

    • I can select and construct appropriate charts, diagrams and graphs with suitable scales.

    • I can construct and interpret graphs and diagrams (including pie charts) to represent discrete or continuous data, choosing an appropriate scale.

    Progression step 5

    • I can select and construct appropriate charts, diagrams and graphs with suitable scales.

  10. Analysing and evaluating business data

    Assessed: In coursework (non-examination assessment, NEA)

    Learners analyse and interpret business data, think critically about it and make reasoned judgements based on it, in the context of society, ethics and the environment.

    Numeracy: Interpreting data

    Getting pupils ready

    Year 7
    Pupils read a bar chart of a local shop's monthly sales, name the best month and suggest a reason.
    Year 8
    Pupils spot what is misleading in an advert graph claiming a product is '50% better' and write a fairer caption.
    Year 9
    Pupils analyse survey results for their enterprise idea and write a judgement on whether demand is strong enough, naming one limitation of the sample.
    Show the specification wording and the LNF statements

    Where it is in the specification: Unit 2, Section 2.2.3 Evaluating business data, page 22

    “make reasoned judgements based on analysed business data • think critically about the business data”
    Progression step 3

    • I can extract and interpret information from an increasing range of diagrams, timetables and graphs (including pie charts).

    • I can draw conclusions from data and recognise that some conclusions may be misleading or uncertain.

    Progression step 4

    • I can interpret mathematical information; drawing inferences from graphs, diagrams and data, including discussion on limitations of data.

    • I can examine results critically, select and justify choice of statistics, recognising the limitations of any assumptions and their effect on the conclusions drawn.

    Progression step 5

    • I can interpret mathematical information; drawing inferences from graphs, diagrams and data, including discussion on limitations of data.

    • I can draw conclusions from data and recognise that some conclusions may be misleading or uncertain.

Good to know

Links with other qualifications

Appendix A (pages 45 and 46) maps all four literacy strands to every unit and the number system and statistics numeracy strands to every unit, with no geometry or measurement.

Source: WJEC GCSE Business specification, Version 4, September 2025 (teaching from 2025, for award from 2027).