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2024 AQA A-level BUSINESS 7132 / 1 Paper 1 Business 1
Verified Question paper and Marking Scheme Attached
BUSINESS
Paper 1 Business 1
Tuesday 14 May 2024 Morning Time allowed: 2 hours
Materials
For this paper you must have:
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. For Examiner’s Use Question Mark Section A 16 17 18 19 20 21 22 23 24 TOTAL
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 In which of these business forms could the owner/owners be required to sell personal assets to pay for business liabilities? [1 mark] A Private limited companies and public limited companies B Private limited companies and sole traders C Public limited companies only D Sole traders only (^0 2) Statement 1 : ‘Cheaper resources overseas would discourage a UK business which has a low-cost positioning strategy from re-shoring production.’ Statement 2 :^ ‘Political^ instability^ overseas^ would^ discourage^ a^ UK^ business^ from^ re-shoring production.’ 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.
Do not write outside the (^0 6) Statement 1 : ‘According to Ansoff’s matrix, market development involves selling a new product in a new^ box market.’ Statement 2 : ‘According to Ansoff’s matrix, market penetration involves selling an existing product in an existing market.’ 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 7) Assuming no other changes, sales revenue for a product will stay the same if: [1 mark] A incomes rise by 10% and the income elasticity of demand for the product is 0 B incomes rise by 10% and the income elasticity of demand for the product is +0. C the price rises by 10% and the price elasticity of demand for the product is 0 D the price rises by 10% and the price elasticity of demand for the product is – 10
Do not write outside the (^0 8) The diagram below shows ‘the experience curve’ of a particular business.^ box The x-axis for this diagram measures: [1 mark] A annual output. B capacity utilisation (%). C cumulative output. D employee numbers. (^0 9) In a decision tree there are four possible outcomes of an action. The probabilities of the 1st, 2nd and 3rd outcomes are 0.4, 0.32 and 0.24 respectively. The probability of the 4th outcome is: [1 mark] A 0. B 0. C 0. D 0. Turn over ►
Do not write outside the The exchange rate for the £ increases.^ box This will lead to which one of the following outcomes? [1 mark] A B C D (^1 3) A business’ current liabilities are three times the level of its current assets. Shareholders provide 20% of its capital employed. This business has: [1 mark] A a high current ratio and a high gearing. B a high current ratio and a low gearing. C a low current ratio and a high gearing. D a low current ratio and a low gearing. Turn over for the next question Turn over ►
Costs of imports to UK Demand for UK exports Decrease Decrease Decrease Increase Increase Decrease Increase Increase
Do not write outside the box 1 5 Referring to the network shown above: If Activity A is delayed by 3 days, the duration of the critical path will: [1 mark] A not change. B increase by 1 day. C increase by 2 days. D increase by 3 days.^15 (^1 4) Questions 14 and 15 are based on the network below: Referring to the network above, which one of the following statements is true? [1 mark] A Activity B is not on a critical path. B Activity D is not on a critical path. C Activity G is not on a critical path. D All of the activities (A to G) are on a critical path.
Do not write outside the A company invests £20 million into a new project in Year 0.^ box In the next two years the predicted net returns of the project, along with the discount factors, are shown in the table below: Year Net return (£m) Discount factor 1 11 0. 2 12 0. Based on the information provided, calculate the expected net present value (NPV) for the new project. Show your working. [4 marks] Answer Working 4
Do not write outside the (^1 8) Analyse why a public limited company might prefer to use share capital as a source of^ box finance, rather than a bank loan. [9 marks] Extra space Turn over ►
Do not write outside the (^2 0) A UK manufacturer is highly geared and exports 60% of its output.^ box Analyse the impact of a significant increase in UK interest rates on this business. [9 marks] Extra space Turn over ►
Do not write outside the Section C^ box CORRECT METHOD WRONG METHODS Answer either Question 21 or Question 22. Shade the lozenge below to indicate which optional question you have answered. Question 2 1 Question 2 2 (^2 1) To what extent are financial ratios the best way of assessing the performance of non-profit organisations, such as charities or mutuals? [25 marks] OR 2 2 A business changes its human resource management (HRM) approach from hard HRM to soft HRM. To what extent is this change guaranteed to increase the motivation of all employees? [25 marks]
Do not write outside the box Extra space
Do not write outside the box Turn over ►
Do not write outside the box Turn over ►
Do not write outside the Section D^ box Shade the lozenge below to indicate which optional question you have answered. CORRECT METHOD WRONG METHODS Answer either Question 23 or Question 24. Question 2 3 Question 2 4 (^2 3) To what extent does rapid change in the external environment mean that strategic drift is inevitable for a business? [25 marks] OR (^2 4) Will the introduction of lean production always lead to lower unit costs? Justify your view. [25 marks]
