Candidate signature
I declare this is my own work.
A-level
BUSINESS
Paper 1 Business 1
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.
*Jun217132101*
IB/G/Jun21/E9 7132/1
, 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 Statement 1: ‘In a SWOT analysis, high staff turnover is a threat.’
Statement 2: ‘In a SWOT analysis, excellent research and development facilities are
an opportunity.’
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 2 After five years of trading, the value of a company’s initial ordinary share capital is
identical to the value of its market capitalisation. No further shares have been issued
during this period.
These two values will only be identical if:
[1 mark]
A all of its profit has been distributed to shareholders.
B all of its profit has been retained in the business.
C it has made a total profit of zero over the five years.
D the current market price of the shares is the same as the initial
share price.
*02*
IB/G/Jun21/7132/1
, 3
Do not write
outside the
0 3 Figure 1 below shows the Blake Mouton grid. box
Figure 1 Blake Mouton grid
In Figure 1, the move from point Y to point Z shows a change in leadership style:
[1 mark]
A from country club leader to ‘produce or perish’ leader.
B from country club leader to team leader.
C from impoverished leader to ‘produce or perish’ leader.
D from impoverished leader to team leader.
Turn over for the next question
Turn over ►
*03*
IB/G/Jun21/7132/1
, 4
Do not write
outside the
0 4 In which of these situations is a business most likely to use outsourcing for some of its box
production?
Current level of Predictability of
Situation
capacity utilisation demand
A High High
B High Low
C Low High
D Low Low
[1 mark]
A Situation A
B Situation B
C Situation C
D Situation D
0 5 In 2019, the niche market of electric cars increased its share of the global car sales
market from 0.8% to 2.4%. However, global car sales fell by 2.5%. Model X was the
most popular electric car. On a Boston Matrix for the global car market in 2019,
Model X was a:
[1 mark]
A cash cow.
B dog.
C problem child/question mark.
D star.
*04*
IB/G/Jun21/7132/1
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