Edexcel GCSE Business Studies Paper 1: Investigating small business November 2020 question paper 1BS0/01

Which one of the following is an example of a reward from business activity?

Select one answer.

Which one of the following is a definition of market share?

Select one answer.

Explain one benefit to a small business from having a unique selling point.

Explain one advantage to a small business of using trade credit as a source of finance.

Which two of the following are examples of secondary market research?

Select two answers.

Which two of the following are examples of variable costs?

Select two answers.

Table 1 contains information about cash payments of a small business in one month. The business sold 200 units in this month. All customers paid in cash.

Using the information in Table 1, calculate the net cash flow for this month You are advised to show your workings.

Explain one disadvantage of starting a small business as a partnership.

Explain one way the marketing mix of a small business may change due to changing consumer needs.

Which one of the following is a characteristic of a sole trader?

Select one answer.

Figure 1 shows the total costs for a business between May and July.

Using the information in Figure 1, calculate the percentage change in total costs between May and July. You are advised to show your workings.

Explain one reason why new business ideas come about.

Explain one advantage to a small business of using market mapping.

Discuss how the decision making of a small business may be affected by increased competition.

Outline one reason why cash would be important to On Your Bike.

Analyse the impact on On Your Bike of customers using social media to review the business.

On Your Bike has made the following forecasts for the costs and sales of its bikes for 2021.

Using the information in Table 2, calculate the selling price per bike. You are advised to show your workings.

Using the information in Table 2, calculate the profit On Your Bike is forecast to make from selling bikes in 2021. You are advised to show your workings.

The owners of On Your Bike want to lower the break even level of output and have decided to do this by reducing costs.

Analyse the impact on On Your Bike of reducing costs in order to lower its break even level of output.

State one market segment that On Your Bike has targeted.

Outline one impact on On Your Bike of an increase in the value of the pound.

To expand its business in response to the growth in the cycling market, On Your Bike is considering two options:

Option 1: open a second shop

Option 2: start to use e-commerce on its website.

Justify which one of these two options On Your Bike should choose.

State one stakeholder of Loco.

Table 3 shows the interest rate paid on savings between 2014 and 2017.

Using the information in Table 3, identify the best year for Loco to save any retained profit it may have.

Outline one way that a business plan could have helped Joe Thwaites when starting Loco.

In order to make improvements to the business, Loco is considering two options:

Option 1: introduce a digital payment system e.g. PayPal

Option 2: hold online meetings using digital communication.

Justify which one of these two options Loco should choose.

Evaluate the extent to which Loco will be able to compete with large manufacturers of SUPs. You should use the information provided as well as your knowledge of business.