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Business Studies · Edexcel 1BS0 · Paper 1: Investigating small business · June 2025

Edexcel GCSE Business Studies Paper 1: Investigating small business June 2025 question paper 1BS0/01

1h 45m 90 marks

Practise the past exam questions by topic

Edexcel 1BS0 · Paper 1

7 questions
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Question 1

(a)

Which one of the following is a type of business ownership?

Select one answer.

Question 1, shown as an image

(1)

(b)

Which one of the following is a short-term source of finance?

Select one answer.

Question 1, shown as an image

(1)

(c)

Explain one way e-commerce could lead to increased sales for a small business.

(3)

(d)

Explain one possible advantage to a small business from a decrease in government taxation.

(3)

Question 2

(a)

Which two of the following are ways that a small business could add value?

Select two answers.

Question 2, shown as an image

(2)

(b)

Which two of the following are elements of the marketing mix?

Select two answers.

Question 2, shown as an image

(2)

(c)

Table 1 contains information for a small business.

Figure for question 2

Using the information in Table 1, calculate the fixed costs for the small business. You are advised to show your workings.

Figure for question 2

(2)

(d)

Explain one way a unique selling point could add value to a small business.

(3)

(e)

Explain one disadvantage of starting a business as a sole trader.

(3)

Question 3

(a)

Which one of the following is an advantage of starting as a franchisee?

Select one answer.

Question 3, shown as an image

(1)

(b)

Figure 1 shows the total costs per year for a small business from 2021 to 2023.

Figure for question 3

Using the information in Figure 1, calculate the percentage increase in total costs between 2021 and 2022. You are advised to show your workings.

Figure for question 3

(2)

(c)

Explain one advantage to a small business of creating a cash-flow forecast.

(3)

(d)

Explain one disadvantage to a small business of using primary market research.

(3)

(e)

Discuss how proximity to market could influence the location of a small business.

(6)

Question 5

Table 2 shows the selling price for a selection of pizzas from the Pizza Pilgrims ’ menu.

Type of pizzaPrice
Margherita£11.50
Nduja£14.50
Mushroom and Truffle£15.50
Fiorentina£12.25
Americana£13.50
Question 5, shown as an image
(a)

Using the information in Table 2, calculate the average selling price for a pizza. You are advised to show your workings.

Figure for question 5

(2)

(b)

Table 3 shows the number of pizzas sold in April and the total cost of producing each

Figure for question 5
Question 5, shown as an image

Using the information in Table 2 and Table 3, calculate the amount of profit made in April from selling Nduja pizzas. You are advised to show your workings.

Figure for question 5

(2)

(c)

Analyse the impact on Pizza Pilgrims from an increase in the rate of inflation.

(6)

Question 6

(a)

State one cash outflow for Pizza Pilgrims.

(1)

(b)

Outline one drawback to Pizza Pilgrims from using digital payment systems.

(2)

(c)

In order to increase profit, Pizza Pilgrims is considering two options:

Option 1: increase the prices of ‘Pizza Through the Post’

Option 2: adding more items to the menu

Justify which one of these two options Pizza Pilgrims should choose.

(9)

Question 7

In the Source Booklet, look at Figure 3 and read Extract B, then answer Question 7.

(a)

State one way that Teendrive must meet employment law.

(1)

(b)

Table 4 shows the price of block booked driving lessons at Teendrive.

Figure for question 7

Using the information in Table 4, identify which block of lessons would be the most expensive per individual lesson .

(1)

(c)

Outline one reason why the idea of Teendrive came about.

(2)

(d)

In order to increase market share, the owner of Teendrive is considering two options:

Option 1: use market mapping to target new customers

Option 2: increase spending on advertising.

Justify which one of these two options Teendrive should choose.

(9)

(e)

Evaluate the likely impact of an improvement in the economic climate to the success of Teendrive. You should use the information provided as well as your knowledge of business.

(12)

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