Business Studies · Edexcel 1BS0 · Paper 1: Investigating small business · June 2019
Which one of the following is a short-term source of finance?
Select one answer.
(1)
Which one of the following is a definition of an exchange rate?
Select one answer.
(1)
Explain one benefit to an entrepreneur of buying a franchise to start a business.
(3)
Explain one way a small business could use market segmentation to target customers.
(3)
Which two of the following are elements of the marketing mix?
Select two answers.
(2)
Which two of the following areas are covered by employment law?
Select two answers.
(2)
Table 1 contains information about a small business for one month. The business sold 340 units in this month.
| Fixed costs | £3 600 |
| Variable costs (per unit) | £9 |
Using the information in Table 1, calculate the total costs for one month. You are advised to show your workings.
(2)
Explain one possible non-financial aim an entrepreneur may have when starting a small business.
(3)
Explain one disadvantage to a small business of using qualitative data for market research.
(3)
Which one of the following is an example of a cash outflow for a small business?
Select one answer.
(1)
Figure 1 shows information about the financial performance of a business from January to March.
Revenue and total costs from January to March
Using the information in Figure 1, calculate the total profit for the period January to March. You are advised to show your workings.
(2)
Explain one benefit to a small business of understanding customer needs.
(3)
Explain one reason why it is important to include financial information in a business plan.
(3)
Discuss the importance of cash to the survival of a small business.
(6)
Outline one risk taken by the owners when starting Last Course Patisserie.
(2)
Analyse the impact on Last Course Patisserie of operating as a private limited company.
(6)
Last Course Patisserie has the following financial information for the month of April.
| April | |
| Raw materials for each dessert | £0.50 |
| Packaging for each dessert | £0.20 |
| Fixed costs | £2 730 |
| Selling price for each dessert | £2.00 |
Using the information in Table 2, calculate the level of output required to break-even in April. You are advised to show your workings.
In May suppliers increased the cost of raw materials by 4%.
(2)
Using the information in Table 2, calculate the variable cost per dessert following the increase in the cost of raw materials.
(2)
UK consumer incomes are expected to rise over the next 10 years.
Analyse the likely impact on Last Course Patisserie of this changing level of consumer income.
(6)
The new head chef carried out secondary market research to identify information about the food market.
State one benefit to Last Course Patisserie of conducting secondary market research.
(1)
Outline one impact on a stakeholder group of Last Course Patisserie if it relocates to new premises.
(2)
In order to increase the number of desserts that can be produced to meet the extra demand, Last Course Patisserie is considering two options:
Option 1: investing in new machinery
Option 2: employing more staff.
Justify which one of these two options Last Course Patisserie should choose.
(9)
State one way Aphrodite could use social media.
(1)
Table 3 shows the value of the pound (£) in euros (€) from June to September.
Identify, from Table 3, which month was best for Aphrodite to import clothes from Paris.
(1)
Outline one reason why Aphrodite’ s range of stock could give it an advantage over its competitors.
(2)
To pay for the conversion of the premises, Aphrodite is considering two options:
Option 1: obtaining a bank loan
Option 2: crowd funding.
Justify which one of these two options Aphrodite should choose.
(9)
Evaluate the impact of e-commerce on Aphrodite ’s marketing mix. You should use the information provided as well as your knowledge of business.
(12)
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