AQA A Level Business Studies Paper 1: Business 1 November 2020 question paper 7132/1

‘The process of transforming raw information into useful information that can support various activities of a business’.

The definition above most accurately describes

Despite a significant increase in its sales revenue, a product’s market share falls from 60% to 50%.

This product is a

Statement 1: ‘An increase in its level of capacity utilisation can help a business because it allows it more time for maintenance and repair of equipment.’

Statement 2: ‘An increase in its level of capacity utilisation can help a business because it allows it to meet unexpected increases in demand.’

Read statements 1 and 2 and select the correct option from the following options.

The table below shows data from a company’s accounts.

The company’s operating profit is

Statement 1: ‘Lean production should reduce unit costs because it involves a business buying raw materials in greater bulk.’

Statement 2: ‘Lean production should reduce unit costs because it reduces wastage of raw materials.’

Read statements 1 and 2 and select the correct option from the following options.

The table below shows four possible scenarios.

In which of these scenarios is strategic drift least likely to occur?

Figure 1 shows Greiner’s five stages of growth.

Point ‘ X ’ shows the crisis of

Which one of the following perspectives is not used by Kaplan and Norton’s balanced scorecard?

The table below shows the net annual return of an investment.

After two years, the ARR (%) for this investment is

The table below shows the two different management styles used by managers in four companies.

Which company is most likely to use a soft human resource management approach?

Statement 1: ‘External growth requires a business to integrate with another business that is located in a different country.’

Statement 2: ‘Organic growth requires a business to use its own resources to expand its size.’

Read statements 1 and 2 and select the correct option from the following options.

The diagram below shows the original breakeven chart for a product.

The product’s fixed costs then decrease and its variable costs per unit increase such that, at its current output of 100 units, the total costs are still the same, as shown by point X.

Which one of these statements is correct?

A business’s competitive advantage is based on innovation. Hofstede’s national cultures model includes indices for uncertainty avoidance (UAI) and power distance (PD).

Based only on Hofstede’s national cultures, this business would benefit most from locating in a country with

Statement 1: ‘Usually there is a negative correlation between changes in consumers’ incomes and changes in the quantity demanded of a product.’

Statement 2: ‘Usually there is a positive correlation between changes in the price of a competitor’s product and changes in the quantity demanded of a product.’

Read statements 1 and 2 and select the correct option from the following options.

A business sells four products.

The table below shows the price elasticity of demand and income elasticity of demand for the four products.

A year ago, all four products had identical sales volumes. Since then, each product has had the same percentage cut in price and there has also been a fall in consumer incomes.

Which one of these products has the highest sales volume now?

The table below shows a company’s budgeted income and expenditure for 2019.

At the end of the year the actual income and expenditure are as follows:

• income is 5% below the budgeted figure

• expenditure is 10% higher than the budgeted figure.

Calculate the profit variance and state whether it is adverse or favourable.

The data below relates to a factory.

Capacity = 180 units per day

Number of employees = 16

Wages per day = £60 per employee

Selling price of product = £15 per unit

Capacity utilisation of factory = 80%

Assuming that all output is sold, calculate the factory’s employee costs as a percentage of turnover.

Analyse how employing a more diverse workforce might increase the profit of a business.

The table below shows the changes in the two efficiency ratios for Wilson PLC, 2018–2019.

Analyse the implications of these changes for Wilson PLC’s cash levels.

Analyse the problems that might arise for a small business from the growth of digital technology.

‘Limited liability benefits all stakeholders of a public limited company.’

Do you agree? Justify your view.

OR

‘To achieve successful innovation, the level of spending on research and development is more important than the organisational culture of a business.’

Do you agree? Justify your view.

OR

A business is changing from a strategic position of low cost to one of differentiation.

Will this lead to the business spending more on marketing and less on the operations function? Justify your view.