Download 2024 AQA AS BUSINESS Paper 1 Business 1 COMBINED QUESTION PAPER WITH FINAL MARKING SCHEM and more Exams Business Economics in PDF only on Docsity!
*Jun24 7131101 *
IB/G/Jun24/G4001/E9 7131/
For Examiner’s Use
Question Mark Section A 11 12 13 14 15
TOTAL
Friday 17 May 2024 Morning Time allowed: 1 hour 30 minutes
Materials
For this paper you must have:
Instructions
- Use black ink or black ball-point pen.
- Fill in the box at the top of this page.
- Answer all questions.
- You must answer the questions in the spaces provided. Do not write outside the box around each page or on blank pages.
- If you need extra space for your answer(s), use the lined pages at the end of this book. Write the question number against your answer(s).
- Do all rough work in this answer book. Cross through any work you do not want to be marked.
Information
- The marks for questions are shown in brackets.
- The maximum mark for this paper is 80.
Please write clearly in block capitals.
Centre number Candidate number
Surname
Forename(s)
Candidate signature I declare this is my own work.
AS
BUSINESS
Paper 1 Business 1
Do not write outside the Section A box
Answer all questions in this section.
Only one answer per question is allowed.
For each question completely fill in the circle alongside the appropriate answer.
CORRECT METHOD WRONG METHODS
If you want to change your answer you must cross out your original answer as shown.
If you wish to return to an answer previously crossed out, ring the answer you now wish to select as shown.
(^0 1) Statement 1: ‘Profit is important because it can measure success.’
Statement 2: ‘Profit is important because it can reward shareholders.’
Read statements 1 and 2 and select the correct option from the following: [1 mark]
A Statement 1 is true. Statement 2 is true.
B Statement 1 is true. Statement 2 is false.
C Statement 1 is false. Statement 2 is true.
D Statement 1 is false. Statement 2 is false.
(^0 2) Which one of these factors is not a feature of lean production? [1 mark]
A Frequent deliveries from suppliers
B Long lead times
C Low inventory levels
D Right first time quality
Do not write outside the 0 5 Think about Maslow’s hierarchy of needs. Which one of the following statements does box Maslow say is true? [1 mark]
A Security/safety needs must be satisfied before physiological needs can be used to motivate employees.
B Self-actualisation needs must be satisfied before ego/esteem needs can be used to motivate employees.
C Social/belonging needs must be satisfied before ego/esteem needs can be used to motivate employees.
D Social/belonging needs must be satisfied before security/safety needs can be used to motivate employees.
(^0 6) Statement 1: ‘Market mapping is often used to calculate the market share of a business.’
Statement 2: ‘Market mapping shows the geographical location of a business on a map.’
Read statements 1 and 2 and select the correct option from the following: [1 mark]
A Statement 1 is true. Statement 2 is true.
B Statement 1 is true. Statement 2 is false.
C Statement 1 is false. Statement 2 is true.
D Statement 1 is false. Statement 2 is false.
(^0 7) A business has an opening balance of £5000 on 1 July.
In the month of July, there is a cash outflow of £14 000. The net cash flow for July is £22 000.
The business’ closing balance on 31 July is: [1 mark]
A – £
B £
C £13 000
D £27 000
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Do not write outside the 0 8 Which of the following actions is most likely to improve profits in the short-term? box [1 mark]
A Increasing capital expenditure
B Increasing spending on marketing research
C Increasing the price of a good which has price inelastic demand
D Increasing training for employees in new production methods
0 9 Which^ one^ of the following is most likely to be the result of successful employee engagement? [1 mark]
A Higher labour costs per unit
B Higher trade union membership
C Lower labour productivity
D Lower labour turnover
(^1 0) Company X has a 40% market share. The market size declines by 20%. There are no other changes. Company X’s market share now is: [1 mark]
A 32%
B 48%
C 50%
D 60% 10
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Do not write outside the 1 3 The following data applies to a business. box
Selling price per unit £
Output 9000 units
Variable cost of each unit £
Expenses £20 000
Calculate the operating profit margin (profit from operations margin) for the business. [4 marks]
(^1 4) A business sells one type of product. The demand for this product has an income elasticity of +4.
Explain the impact on the revenue of this business if the incomes of consumers increase. [4 marks]
Do not write outside the 1 5 Analyse how the use of technology might improve operational efficiency in a manufacturing box business. [ 6 marks]
Extra space
Do not write outside the Section C box
Answer all questions in this section.
Paul’s Puzzle Business
Paul retired from his full-time job in 2018 and started a small business as a sole trader. The most Paul wanted to work was two days a week. He produces wooden puzzles which are sold to two large retailers. Paul’s main aim when starting was to make an operating profit of £20 000 a year to add to his pension. Since starting, Paul has more than doubled this profit figure. He has worked more than expected but has really enjoyed it.
Trends for the puzzles change quickly. Paul can respond immediately by altering the designs produced. Paul provides the puzzles to the retailers but receives payment three months later. He makes a large gross profit margin. Paul worries about having to pay his supplier for all material costs even if puzzles do not sell. Last month, sales hit record figures and now the retailers owe Paul a large amount of money.
Paul’s supplier usually sells to him in bulk. The supplier has offered an excellent one-off half price deal on materials for orders by the end of this month. Paul is keen to take up the offer. However, he does not have enough cash available to do this. Paul’s bank manager advised him that interest rates on loans would be 6% and are rising very rapidly. Another lender said they could arrange a debt factoring agreement at 85% of any sales invoices.
Recently, Paul has been contacted by an investor, Holly. Holly has no experience in this market but is impressed with Paul’s business. She believes she can help him to expand but insists that Paul’s business would have to be turned into a private limited company. Paul would maintain a 40% share and she would own the rest. Holly would buy new machinery to help Paul make more items. Holly has promised she can increase profits by 300% but she would make all the decisions. This would allow Paul to go back to working two days a week.
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Do not write outside the 1 6. 1 Analyse the factors Paul might consider when deciding whether to use debt factoring box to improve cashflow. [9 marks]
Extra space
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Do not write outside the 1 7 box Refurb-iture Ltd Veronica is CEO of Refurb-iture Ltd, which makes and sells luxury home furniture to high income groups. Currently all of its furniture is made from reclaimed and recycled materials. The business has grown rapidly in the last two years. The number of staff in the sales department has increased from 15 to 75. As a result, many staff are inexperienced. In the sales department, there are currently 5 managers and 10 deputy managers. Each deputy manager is in charge of 6 assistants.
Some new staff have reported they do not feel very well supported. There have been some complaints from customers about slow service times as staff check information with deputy managers. The business’ staffing costs are double that of its main competitor.
Veronica recognises that good customer service and eco-friendly products are the main reasons customers buy from Refurb-iture Ltd. The shareholders of Refurb-iture Ltd have set Veronica the following objectives:
- expand the product portfolio from just home furniture to achieve rapid sales growth
- maintain its exclusive and unique brand image
- increase profitability in the long term.
Veronica is determined to meet these objectives by increasing the product portfolio with one new type of product. She has researched two options for the new type of product: garden furniture or office furniture. Her research is shown below.
Garden furniture option Office furniture option
Market value in UK £12 million £650 million
Growth in the market in last 10 years 10%^ 25%
Average price per unit £1500 £
Initial investment cost for machinery £2.5 million^ £1.2 million
Variable cost per unit £120 £
Discounts offered by suppliers for bulk purchases
Not offered 15%
Materials used 100% eco-friendly 40% eco-friendly
Number of competitors with similar products 1 8
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Do not write outside the 1 7. 1 Veronica has decided to make the deputy managers redundant. box
Analyse the possible impact of this decision on Refurb-iture Ltd’s performance. [9 marks]
Extra space
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END OF QUESTIONS
