AQA A-level BUSINESS Paper 1 Business 1 rating JUNE 2022

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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 ► [Show More]

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