PRACTICE EXAM PAPER. AQA A Level Business. Question Paper Paper 1 Business 1
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1 PRACTICE EXAM PAPER AQA A Level Business Question Paper Paper 1 Business 1
2 AQA A Level Business Paper 1 Business 1 Practice Exam Paper 2 hours Materials For this paper you must have: h a calculator Instructions h Use black ink or black ball-point pen h Fill in the boxes at the bottom of this page h Answer all questions in Section A and Section B h Answer one question from Section C and one question from Section D. Write these answers in continuous prose h Do all rough work in this answer book. Cross through any work you do not want to be marked h You must answer the questions in the spaces provided. Do not write outside the box around each page or on blank pages Information h The marks for questions are shown in brackets h The maximum mark for this paper is 100 Please write clearly, in block capitals, to allow character computer recognition. Centre number Candidate number Surname Forename(s) Candidate signature Page 2 AQA A Level Business Practice Exam Paper
3 Only one answer per question is allowed. For each answer completely fill in the circle alongside the appropriate answer. Correct method: Wrong methods: 7 3 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. Section A ANSWER ALL QUESTIONS IN THIS SECTION 01 Which one of the following is not a business objective? A Survival B Profit maximisation C Sales maximisation D Competitive prices 02 Which one of the following is not one of Kotter and Schelsinger s four reasons for resistance to change? A Parochial self-interest B Manipulation and co-option C Low tolerance for change D Different assessments 03 The income elasticity of demand for a brand of perfume is What will happen if incomes rise by 5%? A B C D Quantity demanded will rise and sales revenue will rise Quantity demanded will fall and sales revenue will fall Quantity demanded will rise and sales revenue will fall Quantity demanded will fall and sales revenue will rise AQA A Level Business Practice Exam Paper Page 3
4 04 The Tannenbaum-Schmidt continuum is a scale relating the degree to which managers involve subordinates in decision making. Which is the correct order of this continuum? A B C D Tell Sell Consult Delegate Sell Consult Sell Delegate Delegate Consult Sell Tell Consult Tell Delegate - Sell 05 A business has calculated a budgeted income of 108,000 and budgeted expenditure 77,800. Its actual income is 108,900 and actual expenditure 79,100. The profit variance is: A B C D 29,800 adverse 30,200 favourable 400 favourable 400 adverse 06 Which one of the following is not one of Handy s four types of organisational culture? A Role B Task C National D Power 07 Michael Porter would classify a strategy that is based upon selling high added value products or services as: A B C D Diversification Differentiation Market development Cost leadership 08 In 2014 the market size by value for chewing gum was 3bn. In 2015 it rose to 3.3bn and 3.63bn in If this rate of growth continues, what will the market size be in 2017? A B C D 3.93bn 4.1bn 3.99bn 4.39bn Page 4 AQA A Level Business Practice Exam Paper
5 09 In Maslow s Hierarchy of needs the highest level is: A Security B Esteem C Social D Self actualisation 10 Which one of the following is not a method of lean production? A Kaizen B Quality control C Just in time D TQM 11 The amount of money needed by a business to pay for its day-to-day trading is known as? A Non-current assets B Receivables C Working capital D Payables 12 The information below applies to a business: Total equity: 50 million Non-current liabilities: 10 million Current liabilities 2 million Operating profit 15 million Its return on capital employed (ROCE) is: A 37.5% B 25% C 24.2% D 25.8% 13 Which one of the following is not associated with a flexible organistation? A Delayering B Flexible employment contracts C Organic structure D Mechanistic structure AQA A Level Business Practice Exam Paper Page 5
6 14 Which one of the following is not an element of Elkington s Triple Bottom Line? A People B Planet C Power D Profit 15 Using the data in Table 1, which one of the following statements is true for this business between 2015 and 2016? Average number of employees Maximum possible output Actual output A B C D Capacity utilisation decreased and labour productivity increased Capacity utilisation increased and labour productivity decreased Capacity utilisation increased and labour productivity increased Capacity utilisation increased and labour productivity decreased QUESTION 15 IS THE LAST QUESTION IN SECTION A Section B starts on the next page Page 6 AQA A Level Business Practice Exam Paper
7 Section B ANSWER ALL QUESTIONS IN THIS SECTION 16 Invest in new computer system ( 10m) Success m Failure 0.3 Success 0.8 4m 10m Recruit software engineers ( 5m) Failure 0.2 2m A business is considering whether to invest in a new computer system or recruit more software engineers. It has constructed a decision tree to decide which option to choose. Calculate the net gain of investing in the computer system compared to recruiting software engineers. Using these calculations, advise the business which one of the two options it should choose. Show your workings. (4 marks) AQA A Level Business Practice Exam Paper Page 7
8 Extra Space The data in Table 2 refers to a particular business and should be used for questions 17.1 and Table 2 Estimated returns for an investment project Year Cash inflow Cash outflow m m Based on the data in Table 2, calculate the payback period for this investment project. Show your workings. (4 marks) Extra Space Page 8 AQA A Level Business Practice Exam Paper
9 17.2 Based on the data in Table 2, calculate the average rate of return for this investment project. Show your workings. (4 marks) Extra Space AQA A Level Business Practice Exam Paper Page 9
10 18 Explain how a soft drinks business could use Carroll s Social Responsibility pyramid to improve its public image. (5 marks) Extra Space Page 10 AQA A Level Business Practice Exam Paper
11 19 A business that sells wearable fitness activity monitors is launching a new activity watch. Analyse how it could use market research to improve the chances of this product being a success. (9 marks) Extra Space AQA A Level Business Practice Exam Paper Page 11
12 20 A travel agent that currently sells holidays through its high street shops is considering moving into e-commerce. Analyse how a human resource plan would be an important element of this strategy. (9 marks) Extra Space Section C starts on the next page Page 12 AQA A Level Business Practice Exam Paper
13 Section C ANSWER EITHER QUESTION 21 OR QUESTION 22 Shade the circle below to indicate which optional question(s) you have answered. Question 2 1 Question 2 2 Correct methods Correct methods Economic factors are the most important external factor influencing the costs and demand of a business. To what extent do you agree? (25 marks) OR 22 To what extent are financial ratios valuable when assessing the performance of a public limited company? Justify your answer. (25 marks) AQA A Level Business Practice Exam Paper Page 13
14 Page 14 AQA A Level Business Practice Exam Paper
15 Extra Space Section D starts on the next page AQA A Level Business Practice Exam Paper Page 15
16 Section D ANSWER EITHER QUESTION 23 OR QUESTION 24 Shade the circle below to indicate which optional question(s) you have answered. Question 2 3 Question 2 4 Correct methods Correct methods In recent years, many Western companies have adopted a strategy of market development by focusing on selling their products to consumers in international markets. To what extent do you think a strategy of market development will inevitably lead to business success? Justify your answer. (25 marks) OR 24 As a result of the growth in e-commerce, to what extent do you agree that distribution is now the most important element of the marketing mix for a retailer? Justify your answer. (25 marks) Page 16 AQA A Level Business Practice Exam Paper
17 AQA A Level Business Practice Exam Paper Page 17
18 Extra Space END OF QUESTIONS Page 18 AQA A Level Business Practice Exam Paper
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