AQA A Level Business Studies Paper 1: Business 1 June 2022 question paper 7132/1

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:

A business is able to reduce unit costs because of lessons learned throughout the period in which it has existed. This is known as:

In a decision tree the net gain of a decision is the:

Which one of these changes is most likely to lead to higher costs and higher demand for a product?

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:

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?

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:

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 ?

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.

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.

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.

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:

Which one of the following is least likely to be an advantage of operating in a niche market for a small business?

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:

A business’s decision to increase its level of capital expenditure is most likely to:

Calculate the inventory turnover of Magpie plc.

Calculate the payables days for Magpie plc.

Calculate the current ratio for Magpie plc.

Analyse why non-profit organisations set financial objectives.

Analyse how widening a manager’s span of control might affect labour productivity within the department she manages.

Analyse why a business might choose to use labour intensive processes rather than capital intensive processes.

Businesses using flexible employment contracts can be criticised for being unethical.

To what extent should businesses avoid the use of flexible employment contracts?