AQA A-level BUSINESS 7132/1 Paper 1 Business 1 Version: 1.0 Final *Jun* IB/G/Jun23/E13 7132/1QUESTION PAPER & MARKING SCHEME/ [MERGED] Marl( scheme June 2023

AQA A-level BUSINESS 7132/1 Paper 1 Business 1 Version: 1.0 Final *Jun* IB/G/Jun23/E13 7132/1 For Examiner’s Use Question Mark Section A 16 17 18 19 20 21 22 23 24 TOTAL Tuesday 23 May 2023 Morning 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/Jun23/7132/1 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 Which of the following will cause spare capacity in a business to rise? [1 mark] A New competitors are entering the market. B The business closes some factories. C The business’s product becomes more fashionable. D There is a successful advertising campaign. 0 2 Statement 1: ‘Value added can be increased by creating barriers to entry.’ Statement 2: ‘Value added can be increased by lowering unit costs.’ 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. 3 *03* Turn over ► IB/G/Jun23/7132/1 Do not write outside the box 0 3 A women’s clothes store adds furniture to its range in order to increase spending by its existing customers. According to Ansoff’s matrix this is an example of [1 mark] A diversification. B market development. C market penetration. D product development. Turn over for the next question 4 *04* IB/G/Jun23/7132/1 Do not write outside the box 0 4 Figure 1 shows a break-even chart. Figure 1 Statement 1: ‘At 50 units of output, the distance between c and d shows the level of fixed costs.’ Statement 2: ‘At 50 units of output, the distance between c and e shows the total contribution.’ 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. 5 *05* Turn over ► IB/G/Jun23/7132/1 Do not write outside the box 0 5 Statement 1: ‘According to Blake Mouton, a country club leader has a greater concern for production than a produce or perish leader.’ Statement 2: ‘According to Blake Mouton, a team leader has a greater concern for production than a middle of the road leader.’ 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 6 Which government policy is most likely to increase both GDP and inflation? [1 mark] A Higher interest rates B Higher tax on goods C Lower income taxes D More open trade 0 7 A business starts to use ‘kaizen’. This should lead to [1 mark] A external, disruptive change. B external, incremental change. C internal, disruptive change. D internal, incremental change. 6 *06* IB/G/Jun23/7132/1 Do not write outside the box 0 8 Figure 2 shows Bowman’s strategic clock. Figure 2 Which positions did Bowman consider to be undesirable strategies? [1 mark] A 1, 2 and 3 B 1, 7 and 8 C 4, 5 and 6 D 6, 7 and 8 7 *07* Turn over ► IB/G/Jun23/7132/1 Do not write outside the box 0 9 Statement 1: ‘An increase in rent paid by a business will have no effect on its gross profit.’ Statement 2: ‘An increase in tax on a business’s profit will have no effect on its profit for the year.’ 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. 1 0 Which of the following statements is false? [1 mark] A Profit is a financial target for all businesses. B Profit is a measure of performance in Elkington’s triple bottom line. C Profit is a reward for risk-taking. D Profit is a source of finance. 1 1 Statement 1: ‘If a limited company stops trading, the shareholders will be expected to sell personal assets to pay the company’s debts.’ Statement 2: ‘If a limited company stops trading, the business will always pay its payables in full.’ 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 fals