AQA A-level BUSINESS 7132/1 Paper 1 Business 1 Question Paper + Mark scheme [MERGED] June 2022 *jun227132101* IB/G/Jun22/E11 7132/1 For Examiner’s Use Question Mark Section A 16

Document Content and Description Below

AQA A-level BUSINESS 7132/1 Paper 1 Business 1 Question Paper + Mark scheme [MERGED] June 2022 *jun227132101* IB/G/Jun22/E11 7132/1 For Examiner’s Use Question Mark Section A 16 17 18 ... 19 20 21 22 23 24 25 TOTAL Time allowed: 2 hours Materials For this paper you must have: • a calculator. Instructions • Use black ink or black ball-point pen. • Fill in the boxes at the top of this page. • Answer all questions in Section A and Section B. • Answer one question from Section C and one question from Section D. • 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 100. Please write clearly in block capitals. Centre number Candidate number Surname Forename(s) Candidate signature I declare this is my own work. A-level BUSINESS Paper 1 Business 1 2 *02* IB/G/Jun22/7132/1 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 The managers of a business propose to retain all of its profit to finance automation of its production. This is most likely to cause conflict with: [1 mark] A employees and lenders. B employees and shareholders. C lenders and suppliers. D shareholders and suppliers. 0 2 A business is able to reduce unit costs because of lessons learned throughout the period in which it has existed. This is known as: [1 mark] A economies of scale. B economies of scope. C synergy. D the experience curve. 3 *03* Turn over ► IB/G/Jun22/7132/1 Do not write outside the 0 3 box In a decision tree the net gain of a decision is the: [1 mark] A average pay-off of the outcomes. B expected value of the best decision minus the expected value of the next best decision. C expected value minus the initial cost. D total pay-off of the outcomes minus the initial cost. 0 4 Which one of these changes is most likely to lead to higher costs and higher demand for a product? [1 mark] A An increase in the rate of inflation B A rise in interest rates C Introducing fair trade principles D More competition Turn over for the next question 4 *04* IB/G/Jun22/7132/1 Do not write outside the box 0 5 The diagram below shows a breakeven chart. The business produces and sells 10 million units of output. Price rises from £5 to £9. As a result, profit changes: [1 mark] A from minus £10m to £30m. B from minus £10m to £40m. C from £10m to £30m. D from £10m to £40m. 5 *05* Turn over ► IB/G/Jun22/7132/1 Do not write outside the 0 6 box Stated below are three possible changes for a business. 1. A reduction in wage levels. 2. An increase in labour productivity. 3. An increase in labour turnover. Other things being equal, which of the following changes is the most likely to lead to an increase in employee costs as a percentage of turnover? [1 mark] A 1 and 2 only B 2 and 3 only C 2 only D 3 only 0 7 The owner of a business which sells hot drinks asks a focus group of customers for their views. This market research reveals that customers prefer to have cakes with their drinks. In terms of Ansoff’s matrix, the subsequent decision to introduce cakes is an example of: [1 mark] A diversification, resulting from qualitative market research. B diversification, resulting from quantitative market research. C product development, resulting from qualitative market research. D product development, resulting from quantitative market research. 0 8 A product’s price rises by 20% and its sales volume falls by 10%. All of its competitors leave their prices unchanged. The product’s market share, as measured by sales volume, remains the same. Which of these statements is false? [1 mark] A The market size, measured by volume, remains unchanged. B The product’s market share, measured by value, increases. C The product’s price elasticity of demand is inelastic. D The product’s sales value rises. 6 *06* IB/G/Jun22/7132/1 Do not write outside the box 0 9 Statement 1: ‘In a network diagram, the path with the lowest total float time is the critical path.’ Statement 2: ‘In a network diagram, at least one activity must have a float time.’ Read statements 1 and 2 and select the correct option from the following options. [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. 1 0 Statement 1: ‘A business might improve the quality of its product in order to make its demand more price elastic.’ Statement 2: ‘A business might improve the quality of its product in order to increase added value.’ Read Statements 1 and 2 and select the correct option from the following options. [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. 7 *07* Turn over ► IB/G/Jun22/7132/1 Do not write outside the 1 1 box Statement 1: ‘In a SWOT analysis, improvements in infrastructure are a strength for a business.’ Statement 2: ‘In a SWOT analysis, an increase in the minimum wage may be a threat to a business.’ Read Statements 1 and 2 and select the correct option from the following options. [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. 1 2 Based on Kaplan & Norton’s Balanced Scorecard model, a policy to increase Research and Development spending on new products by 5% would be an element of the: [1 mark] A customer perspective. B financial perspective. C internal business process perspective. D learning and growth perspective. 1 3 Which one of the following is least likely to be an advantage of operating in a niche market for a small business? [1 mark] A Economies of scope B Focused marketing C Less competition D Opportunity for tailor-made products 8 *08* IB/G/Jun22/7132/1 Do not write outside the box 1 4 Statement 1: ‘An emergent strategy only occurs in response to external change.’ Statement 2: ‘Strategic drift occurs whenever a business changes a planned strategy.’ Read statements 1 and 2 and select the correct option from the following options: [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. 1 5 A business’s decision to increase its level of capital expenditure is most likely to: [1 mark] A achieve long-term growth. B achieve short-term profits. C avoid cash flow problems. D reduce gearing levels. 15 9 *09* Turn over ► IB/G/Jun22/7132/1 Do not write outside the Section B box Answer all questions in this section. Questions 16, 17 and 18 are based on the data provided in Table 1 below. Table 1 includes all of Magpie plc’s current assets and current liabilities at the end of its financial year, ending 31 March 2021. The inventory level on 31 March 2021 is identical to the average level of inventory held during the year. Table 1 Extracts from financial accounts of Magpie plc Item (£m) Sales revenue 80 Cost of sales 50 Bank overdraft 7 Inventory 8 Payables 12 Receivables 17 1 6 Calculate the inventory turnover of Magpie plc. [2 marks] 1 7 Calculate the payables days for Magpie plc. [3 marks] 2 3 10 *10* IB/G/Jun22/7132/1 Do not write outside the box 1 8 Calculate the current ratio for Magpie plc. [3 marks] 3 11 *11* Turn over ► IB/G/Jun22/7132/1 Do not write outside the 1 9 box Analyse why non-profit organisations set financial objectives. [9 marks] Extra space 9 12 *12* IB/G/Jun22/7132/1 Do not write outside the box 2 0 Analyse how widening a manager’s span of control might affect labour productivity within the department she manages. [9 marks] Extra space 9 13 *13* Turn over ► IB/G/Jun22/7132/1 Do not write outside the 2 1 box Analyse why a business might choose to use labour intensive processes rather than capital intensive processes. [9 marks] Extra space 9 14 *14* IB/G/Jun22/7132/1 Do not write outside the Section C box Answer either Question 22 or Question 23. Shade the lozenge below to indicate which optional question you have answered. Question 2 2 Question 2 3 CORRECT METHOD WRONG METHODS Either 2 2 To what extent might the use of the Boston Matrix enable a multi-product business to achieve overall sales growth? [25 marks] or 2 3 Will the increased use of e-commerce lead to all retailers operating only online? Justify your view. [25 marks] 15 *15* Turn over ► IB/G/Jun22/7132/1 Do not write outside the box 16 *16* IB/G/Jun22/7132/1 Do not write outside the box Extra space 17 *17* Turn over ► IB/G/Jun22/7132/1 Do not write outside the box 18 *18* IB/G/Jun22/7132/1 Do not write outside the box 19 *19* Turn over ► IB/G/Jun22/7132/1 Do not write outside the box 25 20 *20* IB/G/Jun22/7132/1 Do not write outside the Section D box Answer either Question 24 or Question 25. Shade the lozenge below to indicate which optional question you have answered. Question 2 4 Question 2 5 CORRECT METHOD WRONG METHODS Either 2 4 Evaluate the extent to which the actions of the finance function of a business can help that business to achieve the lowest cost in its market. [25 marks] or 2 5 Businesses using flexible employment contracts can be criticised for being unethical. To what extent should businesses avoid the use of flexible employment contracts? [25 marks] 21 *21* Turn over ► IB/G/Jun22/7132/1 Do not write outside the box 22 *22* IB/G/Jun22/7132/1 Do not write outside the box Extra space [Show More]

Last updated: 11 months ago

Preview 1 out of 51 pages