AQA GCSE Business Studies Paper 2: Influences of Marketing and Finance on Business Activity November 2020 question paper 8132/2

Which element of the marketing mix involves selecting a channel of distribution?

Which source of finance is available to a limited company but not a sole trader?

Which pricing method involves calculating the costs of production and adding a percentage to make a profit?

What is the name for the category of products in the Boston Matrix labelled X below?

Which method of growth involves employing another business to produce products or provide services?

Which of the following would be on a statement of financial position?

Explain what is meant by the term ‘economies of scale’.

Identify two ways business activity can have an impact on the environment.

Way 1

Way 2

Explain one way a business can minimise risk.

Explain one way that promoting a good or service can increase sales.

Use the break-even chart below to calculate the margin of safety in units if the actual number of units sold was 700.

Show all workings.

State and explain two extension strategies that can extend the life cycle of a product.

Item A: TradeUp

Identify the business sector that provides services to customers.

Calculate the average number of TradeUp stores opened each year from 2017 to 2019.

Show all workings.

Analyse one benefit for TradeUp of expanding through franchising.

Amelia is considering using a focus group of six customers to gain feedback on her idea.

Advise Amelia whether it is a good idea to use a focus group for her research. Give reasons for your advice.

Item B: TradeUp

Table 1 Extract of Income Statement for year ending April 2020

Explain one factor that influences pricing decisions.

Amelia is aiming to reduce cost of sales in 2021 so she can improve her gross profit. She predicts her sales revenue will stay the same.

Calculate the difference in the gross profit margin between 2020 and 2021 if Amelia increases gross profit by 25%.

State the formula for gross profit margin and show your workings.

Recommend whether Amelia should relocate her TradeUp store from the town centre to the retail park.

Give reasons for your answer.

Item C: Devine Jewellery (DJ) plc

Explain one way that shareholders can have an impact on a business.

Using Item C, explain one way that Devine Jewellery is able to compete successfully internationally.

Use the information in Item C to calculate the percentage decrease in the selling price of a bracelet if it is made from silver instead of gold.

Show all workings.

Analyse one potential impact of the new jewellery collection on Devine Jewellery.

Item D: Devine Jewellery (DJ) plc

Explain one way a business can use digital technology to communicate with customers.

Explain one way that Devine Jewellery will be affected if the exchange rate of the pound falls against other currencies.

Analyse one benefit to Devine Jewellery of using sponsorship of the fashion show to promote its jewellery.

Item E: Devine Jewellery (DJ) plc

Dev wants to improve the financial performance of Devine Jewellery. Dev is considering two options to achieve this. Recommend whether Devine Jewellery should:

• use the hotel chain as a channel of distribution to sell its jewellery

• remove the current credit scheme so that customers can no longer pay for jewellery in monthly instalments.

Analyse the effect of each of these two options on Devine Jewellery.

Evaluate which of these two options will have the biggest impact on the future success of Devine Jewellery.