AQA A Level Business Studies Paper 1: Business 1 June 2024 question paper 7132/1

In which of these business forms could the owner/owners be required to sell personal assets to pay for business liabilities?

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:

Delayering in a business is likely to:

The data below shows the budgets of a business for a particular year:

Budgeted income: £200m Budgeted expenditure: £160m

At the end of the year, the actual income was as budgeted but expenditure was 20% higher than the budget.

This means that the actual profit showed:

Which one of the following statements is true ?

In a SWOT analysis:

Statement 1: ‘According to Ansoff’s matrix, market development involves selling a new product in a new 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:

Assuming no other changes, sales revenue for a product will stay the same if:

The diagram below shows ‘the experience curve’ of a particular business.

The x-axis for this diagram measures:

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:

The data in the table refers to a company’s production of a product.

Between 2020 and 2021 there was a decrease in the unit costs of the product.

Statement 1: ‘Between 2020 and 2021, economies of scale might have led to lower unit costs.’

Statement 2: ‘Between 2020 and 2021, higher capacity utilisation might have led to lower unit costs.’

Read statements 1 and 2 and select the correct option from the following:

Statement 1: ‘A business might improve the quality of its product in order to make its demand more price inelastic.’

Statement 2: ‘A business might improve the quality of its product in order to achieve a competitive advantage.’

Read statements 1 and 2 and select the correct option from the following:

The exchange rate for the £ increases.

A business’ current liabilities are three times the level of its current assets.

Shareholders provide 20% of its capital employed.

This business has:

Questions 14 and 15 are based on the network below:

Referring to the network above, which one of the following statements is true ?

The data below applies to Product X.

Fixed costs = £8000

Selling price = £10

Variable costs per unit = £6

Total contribution from current level of output = £10 000

Calculate the margin of safety for Product X at its current level of output.

Show your working.

A company invests £20 million into a new project in Year 0.

In the next two years the predicted net returns of the project, along with the discount factors, are shown in the table below:

Based on the information provided, calculate the expected net present value (NPV) for the new project.

Show your working.

Analyse why a public limited company might prefer to use share capital as a source of finance, rather than a bank loan.

Analyse why an underperforming business with a role culture might choose to move towards a power culture.

A UK manufacturer is highly geared and exports 60% of its output.

Analyse the impact of a significant increase in UK interest rates on this business.

To what extent are financial ratios the best way of assessing the performance of non-profit organisations, such as charities or mutuals?

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?

To what extent does rapid change in the external environment mean that strategic drift is inevitable for a business?

Will the introduction of lean production always lead to lower unit costs?

Justify your view.