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A-level
BUSINESS
Paper 1 Business 1
Friday 22 May 2020 Morning Time allowed: 2 hours
Materials
For this paper you must have: For Examiner’s Use
• a calculator. Question Mark
Section A
Instructions
• Use black ink or black ball-point pen. 16
• Fill in the boxes at the top of this page. 17
• Answer all questions in Section A and Section B.
18
• Answer one question from Section C and one question from Section D.
• You must answer the questions in the spaces provided. Do not write 19
outside the box around each page or on blank pages. 20
• If you need extra space for your answer(s), use the lined pages at the end of
21
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 22
want to be marked. 23
24
Information
• The marks for questions are shown in brackets. TOTAL
• The maximum mark for this paper is 100.
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2
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 process of transforming raw information into useful information that can support
various activities of a business’.
The definition above most accurately describes
[1 mark]
A data mining.
B e-commerce.
C enterprise resource planning.
D gathering big data.
0 2 Despite a significant increase in its sales revenue, a product’s market share falls from
60% to 50%.
This product is a
[1 mark]
A cash cow.
B dog.
C problem child/question mark.
D star.
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Do not write
outside the
0 3 Statement 1: ‘An increase in its level of capacity utilisation can help a business box
because it allows it more time for maintenance and repair of equipment.’
Statement 2: ‘An increase in its level of capacity utilisation can help a business
because it allows it to meet unexpected increases in demand.’
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.
0 4 The table below shows data from a company’s accounts.
Item £ (million)
Cost of sales 4
Other expenses 3
Sales revenue 12
Taxation 2
The company’s operating profit is
[1 mark]
A £3 million.
B £5 million.
C £6 million.
D £8 million.
Turn over ►
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Do not write
outside the
0 5 Statement 1: ‘Lean production should reduce unit costs because it involves a box
business buying raw materials in greater bulk.’
Statement 2: ‘Lean production should reduce unit costs because it reduces wastage
of raw materials.’
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.
0 6 The table below shows four possible scenarios.
Managers’ willingness to Likelihood of external
Scenario
make internal changes changes in market
A High High
B High Low
C Low High
D Low Low
In which of these scenarios is strategic drift least likely to occur?
[1 mark]
A Scenario A
B Scenario B
C Scenario C
D Scenario D
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