AQA A Level Business Studies Paper 1: Business 1 June 2023 question paper 7132/1

Which of the following will cause spare capacity in a business to rise?

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:

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

Figure 1 shows a break-even chart.

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:

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:

Which government policy is most likely to increase both GDP and inflation?

A business starts to use ‘kaizen’.

This should lead to

Figure 2 shows Bowman’s strategic clock.

Which positions did Bowman consider to be undesirable strategies?

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:

Which of the following statements is false ?

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:

Questions 12 and 13 are based on the following data, which relates to business X.

Which one of the following outcomes happened between 2020 and 2021 for

Which one of the following outcomes happened between 2020 and 2021 for

Which of the following actions would improve the ability of a manufacturer to respond to changes in consumer demand?

A food manufacturer buys two businesses: a direct competitor and a food wholesaler.

What is this an example of?

Turn over for Section B

Question 16 is based on Figure 3, which shows the level of inventory for a product held in a supermarket until the end of day 4.

The reorder quantity arriving at the end of day 4 is half the level of the reorder quantity that arrived at the end of day 2.

After the end of day 4 to the end of day 6 demand will fall to 30 units per day.

Show these two changes on Figure 3 by drawing in the lines that show inventory levels from the end of day 4 to the end of day 6.

Table 1 Extracts from financial records of Wot plc

Wot plc receives £20 million from selling ordinary shares.

The company uses this money as follows:

• £15 million to purchase machinery

• £3 million to pay off its overdraft

• £2 million to increase inventory levels.

Calculate Wot plc’s current ratio after these changes.

Show your working.

Analyse why a large business might choose to introduce a product into a niche market.

A company sells a single product: Product A.

Table 2 Income and price elasticity of demand for Product A

During the next year:

• consumer incomes fall

• the price of Product A increases.

Based solely on the information provided above, analyse how the sales revenue for Product A will change over the next year.

A business has recently experienced a decline in its level of sales. This led to some redundancies.

Analyse how an understanding of Maslow’s hierarchy of needs might help this business to motivate its remaining employees.

Many businesses use contingency planning to prepare for major threats. Some of these contingency plans work well, but others fail to protect the business.

To what extent is the success of a contingency plan for a major threat more dependent on internal factors than external factors?

OR

‘Emerging economies are beneficial to UK businesses, but only as potential markets to help UK businesses to achieve growth.’

Do you agree? Justify your view.

OR